Several federal and Ontario programs allow homeowners to claim renovation expenses on their tax returns — most specifically for accessibility-related modifications. Understanding what qualifies, what doesn't, and how to claim correctly can mean hundreds or thousands of dollars in reduced tax owing.
1. Home Accessibility Tax Credit (HATC) — Federal
The Home Accessibility Tax Credit is a federal non-refundable tax credit under section 118.041 of the Income Tax Act. It is designed for Canadians who are 65 or older, or who are eligible for the Disability Tax Credit (DTC), to help offset the cost of home modifications that improve accessibility or safety.
Credit amount
- You can claim up to $20,000 of eligible expenses per year
- The credit is calculated at 15% of eligible expenses — meaning a maximum annual credit of $3,000
- The credit is non-refundable — it reduces the tax you owe but does not generate a refund if it exceeds your tax payable
Who can claim it
The individual claiming must be either: (a) a qualifying individual aged 65 or older at the end of the tax year, or eligible for the Disability Tax Credit; or (b) an eligible individual making modifications on behalf of a qualifying individual who lives in the home. This means adult children renovating a parent's home may be able to claim if the parent is a qualifying individual.
What qualifies
Eligible expenses are those for renovations that:
- Allow the qualifying individual to gain access to or be mobile within the home
- Reduce the risk of harm within or upon leaving the home
Common qualifying projects include: grab bars and handrails, walk-in bathtubs or roll-in showers, widened doorways for wheelchair access, ramps, stair lifts, main floor bedroom or bathroom additions to avoid stairs, non-slip flooring, and lever-handled hardware.
What does NOT qualify
- Work that is primarily cosmetic (painting, flooring upgrades not related to safety)
- Outdoor landscaping, lawn care, or driveway work
- Routine maintenance (furnace service, eavestrough cleaning)
- Household appliances and electronics
- Work not performed on the qualifying individual's principal residence
How to claim
Claim on Line 31285 of your federal T1 General income tax return. Keep all receipts and invoices — CRA may request documentation. Claim the eligible amounts in the tax year the expense was paid.
2. Ontario Seniors' Home Safety Tax Credit
Ontario's Seniors' Home Safety Tax Credit is a provincial refundable tax credit that supplements the federal HATC. Unlike the federal credit, this Ontario credit is refundable — meaning you can receive money back even if you have no Ontario income tax to pay.
Credit amount
- The credit equals 25% of eligible expenses
- Maximum eligible expenses: $10,000 per household per year
- Maximum annual credit: $2,500 per household
- The credit is refundable — you receive it even with no Ontario tax owing
Eligibility
To claim the Ontario credit, you must: be 70 years of age or older at the end of the tax year (or have a spouse/common-law partner who is); be an Ontario resident; and have incurred eligible expenses on your principal residence.
Eligible expenses
The qualifying expense list largely mirrors the federal HATC: grab bars, ramps, widened doorways, stair lifts, walk-in showers, non-slip flooring, handrails, and similar accessibility improvements. Expenses claimed under this credit cannot also be claimed under the federal HATC for the same dollar amount — but you can claim the same project under both programs on separate amounts up to each credit's limit.
How to claim
Claim on the Ontario 479 provincial tax schedule (Ontario Credits), which feeds into your T1 return. The credit is administered through CRA on behalf of Ontario.
3. Medical Expense Tax Credit — Accessibility Modifications
The federal Medical Expense Tax Credit (METC), under section 118.2 of the Income Tax Act, covers a broader range of disability-related home modifications than the HATC — but only when the modification is prescribed by a medical professional as necessary for a person with a severe and prolonged impairment.
What qualifies under METC for renovations
Eligible home renovation expenses under the METC (per CRA's list of eligible medical expenses) include:
- Alterations to an existing home specifically to enable a person with a mobility impairment to access the home or to be mobile within it (e.g., ramps, doorway widening)
- Modifications to bathrooms for wheelchair accessibility
- Costs of constructing or modifying a home to accommodate a person with severe and prolonged mobility impairment
Credit amount
The METC is non-refundable, calculated at 15% federally of eligible medical expenses exceeding the lesser of $2,635 (2024 threshold, indexed annually) or 3% of net income. The Ontario supplement adds approximately 5.05% provincially on the same amount. A tax professional can calculate your specific benefit.
Important distinction from HATC
Some renovation costs can be claimed under either the HATC or the METC — but not both for the same dollar. In some cases, claiming under the METC provides a larger benefit; in others, the HATC is better. Compare both before filing.
4. HST New Housing Rebate — Substantial Renovations
The federal/Ontario HST New Housing Rebate is not a home renovation tax credit in the conventional sense — it is a partial rebate of the HST paid on construction costs for substantial renovations. This is a significant program that Renfrew County homeowners undertaking major gut-and-rebuild renovations should know about.
What counts as a "substantial renovation"
CRA defines a substantial renovation as one where 90% or more of the interior of a residential property is removed and replaced, excluding the foundation, exterior walls, interior supporting walls, floors, roof, and staircases. This is a high bar — most major renovations do not qualify. Adding a new floor or wing does not typically qualify; a complete gut renovation of an existing structure may.
Rebate amounts
- Federal GST/HST portion: up to 36% of the 5% federal portion of HST paid, to a maximum federal rebate of $6,300
- Ontario provincial portion: up to 75% of the Ontario provincial portion (8%) of HST paid, to a maximum Ontario rebate of $24,000
- Combined maximum potential rebate: up to $30,300 — but only where the full purchase or construction value is below specific thresholds
See our dedicated page on the HST Rebate for Substantial Renovations for full eligibility criteria and the application process.
5. Combining Credits — What's Allowed
Multiple credits can apply to the same project, but the same dollar amount of expense generally cannot be claimed under more than one credit simultaneously. General rules:
- HATC and Ontario Seniors' Home Safety Tax Credit can both apply to the same project but not the exact same dollar for each portion
- HATC and METC are mutually exclusive for the same expense dollar — compare which provides greater benefit
- The HST New Housing Rebate applies to construction costs and is separate from income tax credits entirely
Given the complexity, consulting a CPA or tax advisor is worthwhile for any renovation project over $5,000 where tax credit eligibility may apply. The difference between claiming correctly and missing available credits can easily exceed the cost of a tax consultation.
Documentation Requirements
For all tax credits, CRA may request supporting documentation during a review. Retain:
- All contractor invoices and receipts (keep for at least 6 years from the date of claim)
- Proof of payment (bank statements, credit card statements, cheque images)
- Written contracts specifying the work performed
- For METC claims: written documentation from a medical professional confirming the modification was medically necessary
- Before and after photographs where applicable
Cash payments without receipts are not claimable. Ensure any contractor you hire provides formal invoices — this is an additional reason why hiring reputable, licensed contractors matters.