Canada Home Renovation Tax Credit Calculator

Calculate federal MHRTC credits (up to $7,500), Ontario Healthy Homes Credit, provincial renovation programs, and medical expense deductions for Canadian home renovations.

$
$
Estimated Total Tax Credits
CA$6,750
Net renovation cost after credits: CA$33,250 (83.1% of total)
Federal MHRTC Credit
CA$5,250
Ontario Provincial Credit
CA$1,500
Total Credits
CA$6,750
Net Cost After Credits
CA$33,250
Effective Subsidy Rate
16.9%
MHRTC requires the secondary suite to be self-contained and for a qualifying individual (65+ senior or disabled adult relative). Non-refundable — it reduces tax owed but does not create a refund.

The Multigenerational Home Renovation Tax Credit (MHRTC) is the flagship federal renovation credit — $7,500 maximum for creating a secondary suite for an eligible family member.

Maximum Eligible Expenses
$50,000
Per qualifying renovation
Credit Rate
15%
Non-refundable federal credit
Maximum Credit Value
$7,500
15% × $50,000
Your Estimated Credit
CA$5,250
15% of CA$35,000
RequirementDetails
Qualifying IndividualA person 65+ years old, or an adult with a disability — must be a family member (parent, grandparent, sibling, or adult child).
Secondary UnitMust be a self-contained unit with its own kitchen, bathroom, and sleeping area — not just a spare bedroom.
Eligible ExpensesPlumbing, electrical work, structural modifications, permits, accessible fixtures, grab bars, wider doorways. Excludes furniture and appliances.
Claim PeriodClaimed in the tax year the renovation is completed. The qualifying individual must ordinarily inhabit the unit.
Refundable?No — the MHRTC is a non-refundable credit. It reduces taxes owed but does not generate a refund if your tax is already zero.
Provincial StackingProvincial credits (Ontario, Saskatchewan, etc.) can be claimed alongside the federal MHRTC if the same renovation qualifies.

Maximize your after-tax renovation cost by layering all available federal and provincial credits on the same eligible renovation.

Federal MHRTC
CA$5,250
Line 45355 of T1 return
Provincial Credit
CA$1,500
Ontario Healthy Homes Renovation Tax Credit
Medical Expense Credit
CA$0
If accessibility renovation for disability
Total Stacked Credits
CA$6,750
Combined benefit
Gross Renovation Cost
CA$40,000
Total project cost
Net Cost After All Credits
CA$33,250
Your true out-of-pocket cost
Net Cost After Credits: $33,250
Federal MHRTC: $5,250
Provincial Credit: $1,500
Stacking rules: You can claim both the federal MHRTC and a provincial renovation credit on the same renovation — they are separate programs. However, you cannot claim the same expense under both the MHRTC and the medical expense deduction (Schedule 1). Allocate your eligible expenses to the credit that gives you the highest benefit.

How to Use the Canada Home Renovation Credit Calculator

Select your Renovation Type and Province, then enter your total renovation cost and the portion that qualifies as eligible expenses. The calculator applies the federal Multigenerational Home Renovation Tax Credit (MHRTC), any applicable provincial program, and optionally the medical expense tax credit for accessibility renovations.

Canadian Home Renovation Tax Credits Explained

Federal MHRTC — Multigenerational Home Renovation Tax Credit

Introduced in 2023, the MHRTC is Canada's primary federal renovation tax credit. It provides a 15% non-refundable credit on up to $50,000 of eligible renovation expenses when you add a secondary suite for a qualifying family member — generating a maximum benefit of $7,500.

Eligible expenses: up to $50,000
Credit rate: 15% (non-refundable)
Maximum credit: $7,500

Qualifying individual: family member who is 65+ years old or a disabled adult relative
Qualifying renovation: self-contained secondary unit (own kitchen, bathroom, bedroom)
Claim year: the tax year the renovation is substantially completed

Provincial Renovation Tax Credit Programs

Several provinces offer renovation and accessibility credits that can be stacked on top of the federal MHRTC:

Medical Expense Tax Credit for Accessibility Renovations

Certain accessibility renovations for a person with a disability — such as wheelchair ramps, grab bars, widened doorways, or walk-in tubs — may qualify as medical expenses on Schedule 1 of your T1 return. The federal medical expense credit is 15% of qualifying medical expenses above the lesser of $2,635 or 3% of your net income.

Example: Multigenerational Suite Renovation in Ontario

$45,000 Secondary Suite for Parent (65+) — Ontario — Net Income $70,000

Total Renovation Cost$45,000
Eligible Expenses$40,000
Federal MHRTC (15% × $40,000)$6,000
Ontario Healthy Homes Credit (15% × $10,000)$1,500
Medical Expense Credit (if applicable)~$500
Total Credits$8,000
Net Cost After Credits$37,000
Effective Subsidy Rate17.8%

Frequently Asked Questions

The MHRTC is a federal non-refundable tax credit that provides 15% on up to $50,000 of eligible renovation expenses when adding a self-contained secondary unit for a qualifying family member — a person 65 years or older, or an adult with a disability. The maximum credit is $7,500. It was introduced in the 2022 federal budget and first claimed on 2023 tax returns.
Eligible expenses include: construction and renovation work (labour and materials), plumbing and electrical modifications, permits and professional fees, fixtures and fittings that are permanent (e.g., kitchen cabinets, countertops, bathtub). Ineligible expenses include: appliances, furniture, landscaping, maintenance, cleaning, and any work done by the homeowner themselves.
Yes. The federal MHRTC and provincial programs (Ontario Healthy Homes, Saskatchewan Home Renovation Credit, etc.) are separate programs and can both be claimed on the same renovation. However, you generally cannot claim the same expense under both the MHRTC and the federal medical expense deduction — you must allocate expenses between the two programs to maximize your benefit.
No — the MHRTC is a non-refundable federal tax credit. It reduces the federal income tax you owe, but if your tax owing is already zero, you do not receive a cash refund. The Ontario Healthy Homes Renovation Tax Credit is refundable — it can generate a refund even if no tax is owed.
Keep all contractor invoices (itemized, showing GST/HST number), material receipts, building permits, and before/after photos. For MHRTC, you also need proof that the qualifying individual (senior or disabled family member) actually inhabits the secondary unit — a lease agreement, utility connection, or statutory declaration. CRA can audit claims up to 6 years after filing.

Related Canadian Calculators