Canada’s $7,500 Home Renovation Credit In September 2025- Online Claim Process & Eligibility Rules

The Multigenerational Home Renovation Tax Credit (MHRTC) offers up to $7,500 to Canadian homeowners who build a self-contained secondary suite for a senior (65+) or an adult eligible for the Disability Tax Credit (DTC).

Introduced in the 2023 budget and active through 2025, this refundable tax credit covers 15% of qualifying costs, up to $50,000, and supports independence and affordability in multigenerational living.

MHRTC Snapshot

Feature	Details (2025)
Maximum Renovation Cost Covered	$50,000
Refund Rate	15% of expenses (max $7,500 credit)
Eligible Recipient	Senior (65+) or adult eligible for DTC living with a relative
Qualified Renovation	Self-contained secondary unit with bedroom, kitchen, bathroom, and independent access
Claim Form	Schedule 12, reported on Line 45355 of the tax return (T1)
Nature of Credit	Refundable, issued even if no tax is owed

This tax credit is exclusively for renovations completed in your primary residence of Canada and must comply with local building codes.

What Expenses Qualify?

Eligible expenses include:

• Construction materials (plasterboard, lumber, fixtures)
• Professional labor (contractors, architects, electricians)
• Permits and equipment rentals
• Design and planning costs related to constructing the secondary unit

Non-eligible costs include routine upkeep, furniture, appliances, and cosmetic upgrades not essential for accessibility or independent living.

Who Can Claim MHRTC?

To qualify:

1. The secondary suite must accommodate a qualifying individual:
   • A senior aged 65 or older OR
   • An adult eligible for the Disability Tax Credit (DTC)
2. The property must be your primary residence in Canada, owned by you or your family member, and regularly occupied by both parties (or intended to be within a year post-renovation)
3. The renovation must include separate living essentials—bedroom, kitchen, bathroom, and private entrance—built to code.

How to Claim the MHRTC

Steps to successfully claim:

1. Plan and execute renovation: Ensure compliance with local bylaws.
2. Document everything: Save receipts, invoices, permits, and contracts.
3. Complete renovations within tax year: Only completed work qualifies.
4. Fill Schedule 12: Calculate eligible expenses and confirm your credit amount.
5. File tax return: Enter the MHRTC claim in Line 45355 of your T1 return.
6. Submit documentation: Retain files in case CRA requests verification.

This credit is refundable, meaning you receive the full credit as a tax refund if you have no tax liability.

If you’re planning a home renovation to support a senior or family member with a disability, the $7,500 Multigenerational Home Renovation Tax Credit offers meaningful financial relief.

By building a compliant, self-contained secondary suite, you can enhance accessibility, family care, and receive a 15% rebate on up to $50,000 in costs.

Begin your planning early, track all renovation expenses, complete Schedule 12, and file on your tax return to claim this valuable, refundable credit.

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