$7,500 Canada Home Renovation Credit in April 2025: The $7,500 Canada Home Renovation Credit in April 2025, officially known as the Multigenerational Home Renovation Tax Credit (MHRTC), offers a valuable financial boost to Canadians looking to renovate their homes to support aging parents or family members with disabilities. If you’re planning to build a secondary suite for a loved one, this refundable tax credit could help reduce your renovation costs significantly. This article breaks down who qualifies, how to claim it, and what expenses are covered, in a simple, easy-to-follow format — ideal for both everyday Canadians and professionals navigating the tax landscape.
$7,500 Canada Home Renovation Credit in April 2025
The $7,500 Canada Home Renovation Credit (MHRTC) provides meaningful financial support to families making homes more inclusive for seniors or adults with disabilities. By offering up to 15% in refundable tax credits, the government is helping Canadians care for loved ones while boosting housing flexibility and accessibility. If you’re planning a multigenerational living arrangement or need to renovate for accessibility, this credit can make a real difference — both financially and personally. Just make sure to understand the requirements, track your expenses carefully, and file your claim properly to receive the full benefit.
| Feature | Details |
|---|---|
| Credit Amount | Refundable tax credit of up to $7,500. |
| Maximum Expenses | Covers up to $50,000 in eligible renovation costs. |
| Eligible Renovations | Must create a self-contained secondary unit within the home. |
| Who Qualifies | Seniors (65+) or adults eligible for the Disability Tax Credit (DTC). |
| Official Website | CRA – Multigenerational Home Renovation Tax Credit |
What Is the Multigenerational Home Renovation Tax Credit?
Introduced as part of the Government of Canada’s plan to make housing more inclusive and accessible, the MHRTC is a refundable tax credit designed to help families afford renovations that add a secondary, self-contained unit to their home. This allows seniors or adults with disabilities to live more comfortably with family, while still maintaining independence and privacy. You can claim 15% of eligible expenses up to $50,000, resulting in a maximum credit of $7,500 per qualifying renovation.
Who Is Eligible?
To qualify for the MHRTC, your renovation project must meet specific requirements:
1. Qualifying Individual
The renovation must support one of the following:
- Someone 65 years or older by the end of the tax year.
- An adult 18–64 years old who qualifies for the Disability Tax Credit (DTC).
2. Qualifying Relation
The individual claiming the credit must be a close relative of the qualifying individual (parent, grandparent, child, grandchild, sibling, aunt/uncle, niece/nephew, etc.) or the qualifying individual themselves.
3. Eligible Dwelling
The home must:
- Be located in Canada.
- Be owned (alone or jointly) by the claimant or qualifying individual.
- Be ordinarily inhabited or expected to be inhabited within 12 months of renovation completion.
What Renovations Are Covered?
To qualify, the renovation must involve building a self-contained secondary unit that includes:
- A private entrance.
- A kitchen.
- A bathroom.
- A sleeping area.
Eligible Expenses Include:
- Construction materials and building supplies.
- Professional labour (e.g., contractors, architects).
- Permits and inspection fees.
- Rentals of tools or equipment.
Not Eligible:
- Routine maintenance or repairs.
- Furniture and appliances.
- Landscaping or cosmetic updates.
- Home security systems or cleaning services.
How to Claim the $7,500 Canada Home Renovation Credit in April 2025 – Step-by-Step Guide
Step 1: Plan the Renovation
Ensure your project qualifies. Work with professionals to design a secondary suite that meets building codes and tax rules.
Step 2: Track Every Expense
Keep detailed receipts, contracts, and records of payment. You’ll need these for your claim and in case of a CRA audit.
Step 3: Complete Renovation in the Tax Year
The work must be completed during the tax year you plan to claim the credit.
Step 4: Complete Schedule 12
Use CRA’s Schedule 12: Multigenerational Home Renovation Tax Credit form to calculate your total eligible expenses.
Step 5: Claim on Your Tax Return
Transfer the amount from Schedule 12 to line 45355 of your federal return.
Step 6: Keep Your Records
The CRA recommends keeping all documentation for at least six years.
Additional Tax Benefits You Should Know
- You can combine the MHRTC with other tax credits like the Home Accessibility Tax Credit (HATC).
- Some provinces (e.g., Ontario, Quebec) offer their own renovation incentives. Check your provincial government website for additional savings.
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FAQs About $7,500 Canada Home Renovation Credit in April 2025
Q: Can I claim MHRTC for my in-law’s suite?
A: Yes, as long as your in-law qualifies as a “qualifying individual” and the suite meets the secondary unit requirements.
Q: Can more than one person claim the credit?
A: Yes. If multiple eligible individuals share the expenses, the total claim can be split but cannot exceed the $50,000 limit.
Q: Do I need pre-approval from the CRA?
A: No, but you must retain documentation in case the CRA requests proof of eligibility or expenses.
Q: Is this a one-time credit?
A: Yes. The MHRTC can only be claimed once in a qualifying individual’s lifetime.
Q: What if my renovation doesn’t include a private kitchen or bathroom?
A: The unit must be self-contained to qualify. Partial renovations that don’t meet this standard are ineligible.
