Understanding the Multigenerational Home Renovation Tax Credit (MHRTC) in Brantford and Brant County, Ontario

If you’re planning to renovate your home to create a secondary unit for a senior family member or an adult eligible for the Disability Tax Credit (DTC), the Multigenerational Home Renovation Tax Credit (MHRTC) could help you offset some of those costs. This refundable tax credit is designed to help families create independent living spaces within their homes, allowing multiple generations to live together while maintaining privacy and independence.

Here’s everything you need to know about the MHRTC, including who can claim it, what types of renovations qualify, and how much you can claim.

Who Can Claim the MHRTC?

To claim the MHRTC, both your renovation project and the people living in the home must meet specific criteria. This tax credit is designed to support renovations that create a secondary unit for a qualifying individual.

Eligibility Checklist

All of the following conditions must be met for you to claim the MHRTC:

• You had renovation costs to create a secondary unit within the home or on the property.

• The renovation was completed in the tax year you are claiming, regardless of when the work started.

• One of the individuals living in the existing dwelling or the new secondary unit must be a qualifying individual. A qualifying individual is someone who is either:

  • 65 years of age or older at the end of the renovation year, or
  • 18 to 64 years old and eligible for the Disability Tax Credit (DTC) at any time in the renovation year.

• Only one renovation can be claimed for a qualifying individual during their lifetime.

• Anyone claiming the credit must be an eligible individual, meaning:

  • A resident of Canada for the full tax year.
  • Someone who ordinarily resides (or intends to reside) in the dwelling within 12 months of completing the renovation.
  • They must either be the qualifying individual, their spouse or common-law partner, or a qualifying relation (such as a child or sibling).

• The home must be:

  • Located in Canada (including in Brantford or Brant County).
  • Owned by the qualifying individual or their qualifying relation.
  • Ordinarily inhabited (or expected to be inhabited) by both the qualifying individual and a qualifying relation within 12 months of the renovation being completed.

If you are sharing renovation costs with another family member, you can split the tax credit — as long as the total claimed by all parties doesn’t exceed the maximum.

What Expenses Qualify for the MHRTC?

Not all renovation expenses qualify under the MHRTC. To be eligible, your expenses must meet the following criteria:

• They must be directly attributable to the renovation that created a secondary unit.
• They must be incurred after December 31, 2022, and before the end of the renovation period.
• They must be paid by an eligible individual (or a trust where the eligible individual is a beneficiary).

Examples of Qualifying Expenses

• Materials and supplies.
• Professional services (e.g., electricians, plumbers, carpenters, architects).
• Permits required for the work.
• Equipment rental directly related to the renovation.
• Work done by a family member or by yourself can qualify, but only for materials — not labour unless the family member is GST/HST registered.

Expenses That Do Not Qualify

The following expenses are not eligible for the MHRTC:

• Routine maintenance or repairs.
• Appliances (e.g., stoves, refrigerators).
• Electronics (e.g., televisions).
• Household services (e.g., cleaning, landscaping, snow removal).
• Financing costs (e.g., interest on loans for the renovation).
• Any goods or services from a non-arm’s-length person (family members or closely connected individuals) unless they are registered for GST/HST.
• Expenses that have been reimbursed by another program or grant.
• Any expenses already claimed under the Medical Expense Tax Credit or the Home Accessibility Tax Credit.
• Expenses that are not supported by receipts.

Maximum Amount You Can Claim

The maximum amount of qualifying expenses you can claim for the MHRTC is $50,000 per qualifying renovation. The credit is worth 15% of the eligible expenses, meaning the maximum refundable credit is $7,500.

• Even if your renovation costs exceed $50,000, you can only claim up to that limit.
• If multiple family members share the renovation costs, they can each claim a portion, as long as the total combined claim doesn’t exceed $50,000.

Example

If your renovation costs $60,000, you can only claim $50,000, giving you a maximum tax credit of $7,500.

Special Rules if a Qualifying Individual Passes Away

If the qualifying individual or eligible individual passes away during the renovation period, there are special rules:

• The deceased is considered a resident of Canada until the end of the year.
• Their age is calculated as if they were still alive at year-end.
• If they were cohabiting with a spouse or common-law partner immediately before death, that surviving partner may be eligible to claim the MHRTC — as long as they don’t enter a new common-law relationship before year-end.

Multiple Renovations for Different Individuals

If you complete two separate qualifying renovations for two different qualifying individuals, you can claim the MHRTC for each renovation — meaning you could receive up to $7,500 per project.

When to Claim the Multigenerational Home Renovation Tax Credit (MHRTC)

You must claim the MHRTC for the tax year in which the renovation period ended, even if your renovation project took longer than a year to complete.

What is the Renovation Period?

The renovation period starts and ends based on your renovation timeline, not just the calendar year. It:

• Begins when the first qualifying expense is made — for example, when you apply for a building permit or purchase materials.
• Ends when the renovation is fully completed — for example, when you receive a final inspection approval or other proof that the work is done.

Example

If your renovation starts in 2024 but isn’t completed until 2025, you would claim the MHRTC on your 2025 tax return.

Splitting the Credit Between Eligible Individuals

If more than one eligible individual shares the renovation costs — such as siblings jointly renovating a space for a parent — you can split the MHRTC credit, as long as:

• Each person claiming the credit is an eligible individual (see Who Can Claim section).
• The combined total claimed does not exceed the $50,000 maximum in qualifying expenses.
• Each individual only claims their portion of the expenses that they personally incurred.
• No MHRTC has already been claimed for the same qualifying individual (the senior or adult with a disability) for a previous renovation.

Example

If two eligible individuals each contributed $25,000 towards a $50,000 renovation, they could each claim $25,000 of the qualifying expenses, resulting in a total tax credit of $7,500 between them (15% of $50,000).

Where to Claim on Your Tax Return

Starting with the 2023 tax year, you’ll report your MHRTC claim on line 45355 of your income tax and benefit return.

You’ll also need to complete Schedule 12 – Multigenerational Home Renovation Tax Credit, where you’ll:

• Report your eligible expenses.
• Calculate the total refundable credit you can claim.

If you completed more than one qualifying renovation (for different individuals) in the same year, you can claim each renovation separately on Schedule 12.

Keep Your Supporting Documents

The Canada Revenue Agency (CRA) may request documentation to support your claim. Be sure to keep all:

• Receipts and invoices showing what was purchased and who provided the goods or services.
• Contractor information, including business names, addresses, and GST/HST registration numbers, if applicable.
• Proof of payment, such as receipts showing a zero balance, cancelled cheques, or credit card statements.
• Work descriptions and addresses where the work was performed.
• Delivery slips for materials.

To check if a contractor is registered for GST/HST, you can use the CRA’s GST/HST Registry.

How the MHRTC Affects Other Credits and Benefits

The MHRTC cannot be “double-dipped” — meaning you cannot claim the same expenses for more than one tax credit. Specifically, any expenses you claim for the MHRTC cannot also be claimed under:

• The Medical Expense Tax Credit.
• The Home Accessibility Tax Credit.

Additionally, if you received any rebates, grants, or other forms of assistance for the renovation (including GST/HST rebates), you must subtract that amount from your qualifying expenses when calculating your MHRTC claim.

The Multigenerational Home Renovation Tax Credit offers an incredible opportunity for families to create living spaces that bring generations together, all while offsetting some of the renovation costs. Whether you're planning to build a suite for aging parents, adult children, or family members with disabilities, this credit can make your project more affordable.

If you're thinking about taking advantage of this tax credit but haven't found the right home yet, we can help! As local real estate professionals serving Brantford, Brant County, and surrounding areas, we know how to spot homes with multigenerational potential — whether that means a house with a spacious basement, a separate entrance, or room to expand.

Contact us today to start your search for a home that works for your entire family — and helps you maximize your tax savings along the way!

Official Information on this topic can be found on Canada.Ca Multigenerational Home Renovation Tax Credit
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