Financing
How much is the Multigenerational Home Renovation Tax Credit worth?
Up to $7,250. The credit is 14.5 percent of eligible work, capped at $50,000 of expenses, and it is refundable. It can be claimed once for a given person.
The short answer
Up to $7,250. The Multigenerational Home Renovation Tax Credit is worth 14.5 percent of eligible renovation costs, on a ceiling of $50,000 of eligible expenses.
You will still see the figure quoted as 15 percent and $7,500 in a lot of places online. That was the earlier rate. The Canada Revenue Agency currently states 14.5 percent, because the credit follows the lowest federal personal income tax rate and that rate changed.
Refundable is the word that matters
The credit is refundable, which means it is not only useful if you owe tax. If the credit is larger than the tax you owe, the difference comes back to you.
That is a meaningfully different thing from a non refundable credit, and it is why this one is worth the paperwork even for households with modest tax bills.
Who the renovation has to be for
The credit exists to create a home for a qualifying person, which means someone who is either:
- 65 or older, or
- between 18 and 64 and eligible for the disability tax credit
What the unit itself has to be
The renovation has to produce a genuinely self contained home. That means its own entrance, its own kitchen, its own bathroom and its own sleeping area. It also has to meet local codes and be properly permitted.
A converted bedroom with a kettle in it does not qualify. The bar is a second home, not a spare room.
Once for a person, in their lifetime
This is the condition most often left out, and it changes how families plan. The credit can only be claimed once for a given qualifying person.
A family that does this for one parent cannot claim it again later for the other. If both parents are likely to need a home eventually, that is worth thinking about before the first project rather than after.
Confirm it for your own year
Programmes change, and the details that apply to your situation depend on facts we cannot see. Cam is neither a mortgage broker nor an accountant, and this is not tax advice. Confirm the current terms with your accountant before you count on the money.
Read how the financing options compare
Source: Canada Revenue Agency