Home Renovations Tax Credit in Canada

Table of Content

• We need your feedback to improve saskatchewan.ca. Help us improve
• Ineligible Expenses
• Home renovation tax credit in Saskatchewan
• Home Renovation Tax Credit [Inactive]
• Financial Assistance Programs For Home Renovation In Quebec
• The 2022 Federal Budget: New credits to help buy a home, more tax deductions, and more!

Ultimately, the goal is to improve the energy efficiency of your home through the reduction of your energy consumption. Any expenses you wish to claim must have been incurred between October 1, 2020, and December 31, 2022. Additionally, the renovation must be mostly completed by no later than December 31, 2022, to qualify. Or, is living with or expecting to live with a qualifying senior family member.

MoneySense is owned by Ratehub Inc., but remains editorially independent. While our editorial team does its best to ensure accuracy, details change and mistakes happen. If you read something you feel is incorrect or misleading, we would love to hear from you. MoneySense is not responsible for content on external sites that we may link to in articles. MoneySense aims to be transparent when we receive compensation for advertisements and links on our site .

We need your feedback to improve saskatchewan.ca. Help us improve

For example, only living spaces may be considered; garages and crawl spaces are excluded. Renovating the basement alone would not be considered a substantial renovation. Despite being a pretty open tax credit, there are still some limitations on what is eligible. Costs such as renovations to a cottage, the cost of your labour, appliances, or routine maintenance do not qualify for this tax credit. The primary use for this new tax credit is to create an additional dwelling or suite on an existing property. Such a renovation would make these living arrangements much more comfortable, though they are among the most expensive home renovations one can undergo.

You can claim the HATC by filing in Line of your federal tax return and completing “schedule 12” for Home Accessibility Expenses for your province (in Quebec, it’s called Home Support Services for Seniors). Keep in mind that if you perform the renovations yourself, you can only claim the supply expenses, not the professional labour costs. Tax issues can be complicated, and the guidelines online aren't always clean or up to date. If you plan on taking advantage of one of these tax credits, consult a tax professional before you begin any renovations to ensure you and the work you plan to do are eligible for these tax credits. Saskatchewan residents who claim this tax credit can receive 10.5% of expenses up to $20,000. ​​​​​​Residents of Saskatchewan can claim a general renovation tax credit for eligible home improvements.

Ineligible Expenses

More information about how to open and begin contributing to your FHSA are coming soon. The government intends to work with financial institutions to make sure that FHSAs can be opened starting in 2023. You can’t have owned a home you lived in during the year you opened your FHSA or at any time in the 4 years before you opened your FHSA. Installations must be completed by a licensed professional, except for thermostats. The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice.

Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation. But accommodating additional family members from different generations can be challenging, depending on the amount of space in a home. In many cases, renovating a house or adding to it can provide the extra space needed to comfortably house additional family members. The Canadian government recently announced details about Budget 2022 and the new initiatives to make housing more affordable for Canadians. That reality led the federal government to propose a number of measures to address the housing needs of Canadians.

Home renovation tax credit in Saskatchewan

For people who require some level of care, it can be easier for their families to support them if they all live together in the same home. It also helps to consolidate housing costs to accommodate more than one family, especially given the soaring costs of home prices these days. All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan.

A qualifying individual may only have one qualifying home, and a single home may only claim a total of $20,000 in the event of multiple qualifying claimants. The federal government, and in some cases, provincial governments, provide Canadians with tax rebates for some qualified home renovations. Though they won't cover everything in every case, they are good to know about as you won't find these potential savings unless you know where to look. To be eligible, you must have been 65 years or older at the time of the renovation, and your home must have been your primary residence.

For financial or business advice, please consult your National Bank advisor, financial planner or an industry professional (e.g., accountant, tax specialist or lawyer). If you live in the following provinces or territories, tax programs may be created in the future for home renovations. New Brunswickers over the age of 65 can claim deductions on their tax return if they make improvements to their home to make it more accessible.

The phrase which usually comes to mind when describing such living arrangements is a “granny flat”, which implies a separate, smaller structure on the same property as the existing home. While that is certainly an available option under this program, it’s not the only one. The new tax credit will be available for “renovations, alterations or additions” to an existing dwelling which results in the creation of a “secondary housing unit” for the elderly or disabled relative. The only requirement is that the new housing unit to be used by the qualifying relative must be self-contained, having a private entrance, kitchen, bathroom facilities, and sleeping area. Seniors can receive a tax credit of up to $2,500 to deduct from their Ontario income taxes. The credit is for home safety improvements that help prevent accidents and injuries.

The 2022 federal budget introduced a Multigenerational Home Renovation Tax Credit for up to $50,000 of renovations for adding a secondary unit to a home for an immediate or extended family member. I still get questions about the Federal Home Renovation Tax Credit, which was only available for a single year back in 2009. This was an extremely broad tax credit for all renovations done to your home with virtually no criteria.

You must have a qualifying relationship with the individual who lives with you. This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation.

Tax credits allow you to deduct a specified amount from your taxes due every year. If you do not use the entire credit in a specific year, you can generally carry the unused deductions into future years. Additionally, most programs allow you to share the credit with a partner or spouse. Each year, you can claim expenses related to work billed for in that year.