The $7,500 Home Renovation Tax Credit 2025 (MHRTC) is a major financial relief program introduced by the Canadian government. It is designed to help families create secondary housing units for seniors and persons with disabilities, making it easier for them to live independently while staying close to family support systems.
This refundable credit allows households to claim up to $7,500 on eligible renovation costs, even if they have no taxes owing. With housing costs and caregiving needs rising, this tax benefit provides meaningful support for multigenerational families across Canada.
What Is the $7,500 Home Renovation Tax Credit?
The MHRTC supports multigenerational living arrangements by covering expenses for building a self-contained secondary unit within an existing home. These spaces must be designed for individuals aged 65 and older or those who qualify for the Disability Tax Credit (DTC).
The unit must include essential living features such as a bedroom, kitchen, bathroom, and separate entry, ensuring independence and accessibility.
Quick Overview of the Program
| Category | Details |
|---|---|
| Program | $7,500 Home Renovation Tax Credit (MHRTC) |
| Country | Canada |
| Eligibility | Seniors (65+) and adults eligible for DTC |
| Amount | Up to $7,500 |
| Year | 2025 |
| Residence Requirement | Canadian home owned/occupied by the applicant or family |
| Claim Period | Tax filing season 2026 for 2025 renovations |
| Official Portal | www.canada.ca |
Eligibility for the $7,500 Home Renovation Tax Credit 2025
To qualify, the following conditions apply:
- Who Qualifies
- Individuals 65 years or older by the end of the tax year.
- Adults of any age who qualify for the Disability Tax Credit (DTC).
- Eligible Residence
- Must be located in Canada.
- Must be owned by the applicant or an immediate family member.
- Must be occupied (or expected to be occupied within 12 months of renovation).
- Renovation Requirements
- Construction of a secondary, self-contained unit.
- Compliance with local building codes.
- Must include independent living facilities (bedroom, kitchen, lavatory, and entry).
Eligible Expenses Under the Credit
The MHRTC covers only costs directly related to eligible renovations.
Covered Costs:
- Building materials (lumber, concrete, plumbing, wiring).
- Contractor and architect fees.
- Equipment rentals needed for renovation work.
- Permits and professional inspection fees.
Not Covered:
- Regular home maintenance or minor repairs.
- Furniture, household appliances, or decorative items.
- Landscaping or outdoor projects unrelated to the secondary unit.
Step-by-Step: How to Claim the Credit
- Plan Your Renovation
- Ensure the project complies with local building codes.
- Hire licensed contractors for professional accuracy.
- Track Your Expenses
- Maintain invoices, receipts, and proof of payment.
- Keep a digital or paper log for easy submission.
- Complete Renovation
- Work must be completed within the 2025 tax year.
- Ensure the unit is ready for occupancy.
- Fill Out Schedule 12
- Use the CRA’s Schedule 12 form to calculate eligible costs and credit.
- File Your Tax Return
- Report the credit on line 45355 of your return.
- Submit supporting documentation with your return.
- Check Claim Status
- Use CRA My Account to verify approval and track updates.
Fact Check – Is the $7,500 Credit Real?
- Claim: Canadians can apply for a $7,500 Home Renovation Tax Credit in 2025.
- Verdict: TRUE (with conditions).
- Conditions: Must create a secondary unit for a senior (65+) or an adult with a disability. The home must be owned and occupied by the applicant or family member.
The $7,500 Home Renovation Tax Credit 2025 provides significant financial relief for families modifying their homes to support seniors or disabled relatives.
By covering eligible renovation costs, it ensures accessibility, independence, and stronger family care networks. Those planning to renovate in 2025 should carefully track expenses, follow building codes, and prepare documents to maximize their claim during tax season.
FAQs
Who can claim the $7,500 Home Renovation Tax Credit?
Eligible seniors (65+) and adults who qualify for the DTC, along with their families, can claim the credit for building a secondary unit.
Do I need to live in the renovated unit?
Yes, the renovated unit must be occupied by the eligible individual within 12 months of completion.
When will I receive the refund?
The credit will be applied when you file your 2025 tax return in 2026. Refunds depend on CRA’s processing timelines.