$7,500 Canada Home Renovation Credit Available April 2025 – Are you planning to upgrade your home for a senior parent or a disabled adult family member? Then you need to know about the $7,500 Canada Home Renovation Credit available from April 2025. This new government initiative can help cover a significant portion of your renovation costs — and yes, it’s real money back in your pocket.
Let’s break down exactly what this credit is, who qualifies, and how you can claim it easily through your tax return.
$7,500 Canada Home Renovation Credit Available April 2025
| Detail | Information |
|---|---|
| Credit Name | Multigenerational Home Renovation Tax Credit (MHRTC) |
| Maximum Amount | $7,500 (15% of up to $50,000 in eligible expenses) |
| Availability | Starts April 2025, applicable for 2024 tax year onwards |
| Eligible Renovations | Creation of a secondary unit for a senior (65+) or adult eligible for Disability Tax Credit |
| Tax Benefit Type | Refundable credit |
| Eligible Properties | Must be owned and ordinarily inhabited by applicant and qualifying relative |
| Additional Credits | Can be combined with Home Accessibility Tax Credit (HATC) if applicable |
| Official Source | Canada.ca – MHRTC Guide |
The $7,500 Canada Home Renovation Credit is a game-changer for families looking to care for aging or disabled relatives in a safe and accessible home. By planning smartly, keeping documentation, and following tax guidelines, you can make the most of this generous support from the federal government.
What Is the $7,500 Canada Home Renovation Credit?
The Multigenerational Home Renovation Tax Credit (MHRTC) is a new refundable tax credit introduced by the Government of Canada. It encourages families to build secondary suites in their homes for seniors aged 65+ or adults with disabilities.
In simple terms, if you spend money to renovate your home to accommodate an aging parent or a disabled family member, the government will refund you up to $7,500 when you file your taxes. This helps reduce the financial burden of caregiving and promotes intergenerational living.
Why Was This Credit Introduced?
The Canadian government recognizes the need for affordable caregiving and housing solutions as our population ages. According to Statistics Canada, by 2030, nearly 1 in 4 Canadians will be 65 or older.
This credit is part of a broader initiative to:
- Support aging in place
- Encourage multigenerational living
- Reduce pressure on long-term care facilities
- Offer financial relief for home renovation expenses
- Improve accessibility and quality of life for people with disabilities
This also aligns with the Canadian commitment to inclusive communities and better health outcomes for aging citizens.
Who Is Eligible for the $7,500 MHRTC?
The person benefiting from the renovation must be:
- 65 years or older at the end of the renovation year; or
- Eligible for the Disability Tax Credit (DTC) at any point during the renovation year
The property must be:
- Located in Canada
- Owned by either the qualifying individual or a related family member
- Where both the owner and qualifying person will ordinarily reside within 12 months of completing the renovation
The renovation must:
- Create a self-contained secondary unit with a separate entrance, kitchen, bathroom, and sleeping area
- Comply with local building codes and zoning laws
What Renovation Expenses Qualify?
Not all expenses are eligible. Here’s what typically counts:
Eligible Expenses:
- Labour and professional service fees
- Building materials (plumbing, wiring, doors, windows, etc.)
- Fixtures and equipment
- Permits and related fees
Ineligible Expenses:
- Appliances
- Interior decorating or landscaping
- Financing costs
- Ongoing maintenance
Example: If you spend $45,000 on converting your basement into a legal suite for your aging mother, you can claim 15%, i.e., $6,750 as a refundable credit.
When Can You Claim the MHRTC?
You can claim the credit for expenses incurred on or after January 1, 2023, but it becomes available for filing with your 2024 tax return in April 2025.
The maximum claim is $50,000, even if you do multiple renovations. You can only claim the credit once per lifetime per eligible person.
How to Claim the $7,500 Home Renovation Credit?
Step 1: Plan the Renovation
Work with licensed professionals to design a suite that meets both building code and eligibility requirements.
Step 2: Keep All Documentation
Save every receipt, invoice, permit, and floor plan. These are essential to prove your claim.
Step 3: Complete the Renovation
Ensure the project is finished before you claim. Partial or ongoing work won’t be eligible.
Step 4: File Your Taxes
In April 2025, file your 2024 income tax return using certified software or through your accountant.
- Use the MHRTC schedule provided by CRA
- Enter qualifying expenses
- Submit supporting documents if requested
Step 5: Get Your Refund
If eligible, you’ll receive up to $7,500 as a refund — even if you owe no other tax.
Expert Tip: Stack With Other Credits
You may be eligible to combine the MHRTC with other federal or provincial programs such as:
- Home Accessibility Tax Credit (HATC)
- Provincial seniors’ renovation grants (e.g., Ontario Seniors’ Home Safety Tax Credit)
- Disability Supports Deduction
Talk to a tax advisor to maximize your savings.
Real-Life Example
Maria in Calgary spent $48,000 converting her garage into a ground-level suite for her 70-year-old father. She qualified for:
- $7,200 from MHRTC (15% of $48,000)
- $2,400 from the Home Accessibility Tax Credit
In total, she received $9,600 back through tax refunds — making the renovation far more affordable.
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FAQs
Q1. Can I claim the MHRTC if I rent the house to my parents?
No, the dwelling must be ordinarily inhabited by the qualifying person and a related owner. It must be family-based occupancy, not a rental.
Q2. What if my renovation costs more than $50,000?
You can only claim up to $50,000 of eligible expenses, which gives you the maximum $7,500 credit.
Q3. Can I combine this credit with other home renovation credits?
Yes, in many cases you can also claim credits like the Home Accessibility Tax Credit (HATC) if eligibility overlaps. Talk to a tax professional.
Q4. Is there a deadline to apply?
You must claim the credit in the tax year the renovation is completed. So if you finish in 2024, claim it in your 2024 return filed in April 2025.
Q5. Can I claim MHRTC for more than one relative?
Yes, but only one claim per qualifying individual per lifetime. You can renovate for multiple family members, but the $50,000 expense cap applies per person.
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