The Canadian government’s $7,500 Home Renovation Credit for September 2025 is designed to support families in building secondary housing units for seniors and adults with disabilities. This refundable tax credit encourages independent living and helps families create safer, more accessible homes.
Overview of the Home Renovation Credit
The Home Renovation Tax Credit (HRTC) allows Canadian households to claim up to $7,500 for eligible renovations that improve accessibility and comfort for elderly or disabled family members. The program supports multigenerational living and aims to reduce the financial burden of home modifications.
Who Can Claim the $7,500 Canada Home Renovation Credit
Eligibility for the credit requires the following:
- The secondary residence must be for a senior aged 65 or older or a person eligible for the Disability Tax Credit (DTC).
- The property must be owned by the eligible person or a family member.
- The renovated unit should be regularly occupied or intended to be occupied within one year of completion.
Renovation Requirements
To qualify for the tax credit, the renovations must meet specific criteria:
- Construction of a separate, self-contained secondary unit.
- Installation of essential elements such as a bedroom, kitchen, bathroom, and independent entrance.
- Compliance with local building codes and safety standards.
Steps to Claim the $7,500 Home Renovation Credit
- Plan the Renovation
Ensure the design meets regional building codes. Hiring licensed contractors is recommended. - Track All Expenses
Keep records of all invoices, receipts, and payment proofs for eligible renovation costs. - Complete Renovation
The unit must be finished within the tax year and ready for occupancy. - Fill Out Schedule 12
Report all eligible renovation expenses using the CRA’s Schedule 12 form. - Submit Tax Return
Include Schedule 12 with your tax return and provide all supporting documentation. - Check Claim Status
Monitor your claim on the CRA website and respond promptly if additional information is requested.
Eligible Expenses
Expenses that can be claimed include:
- Building materials such as lumber, drywall, and fixtures.
- Professional fees for contractors, architects, or engineers.
- Equipment rentals for tools or machinery required during construction.
Non-eligible expenses include routine maintenance, furniture, and appliances.
Fact Check
The $7,500 Canada Home Renovation Credit is real but comes with conditions. Only renovations that provide a secondary suite for a senior or adult with a disability and meet the required standards qualify.
Frequently Asked Questions
What is the Home Renovation Credit?
A refundable tax credit providing up to $7,500 to support home modifications for seniors or adults with disabilities.
Who is eligible?
Families creating a secondary unit for a senior (65+) or someone eligible for the Disability Tax Credit.
Which expenses are eligible?
Construction materials, professional labor, permits, and equipment rentals.
How do I claim it?
Complete Schedule 12 on your tax return, submit supporting documents, and verify your claim on the CRA website.