Multigenerational Home Renovation Tax Credit Guide 2026
The Multigenerational Home Renovation Tax Credit (MHRTC) is a refundable tax credit that helps Canadian families offset the cost of creating a secondary dwelling unit for a senior or an adult with a disability.
The credit is designed to support multigenerational living arrangements and make housing more accessible for families across Canada.
What Is the Multigenerational Home Renovation Tax Credit?
The MHRTC is a federal refundable tax credit administered by the Canada Revenue Agency (CRA).
It helps families recover part of the cost of eligible renovations undertaken to create a self-contained secondary unit within an existing home.
The secondary unit must allow the qualifying individual to live with a relative while maintaining an independent living space.
Who Can Qualify?
The credit may be available when renovations are completed for:
- A senior who is 65 years of age or older.
- An adult who qualifies for the Disability Tax Credit (DTC).
The qualifying individual must generally live with an eligible family member in the renovated property.
What Is a Secondary Dwelling Unit?
A secondary dwelling unit is a self-contained living space that includes:
- A private entrance.
- A kitchen area.
- A bathroom.
- A sleeping area.
The unit must be intended for long-term occupancy by the qualifying individual.
Important: The renovation must create a genuinely self-contained living space to qualify for the credit.
What Expenses May Be Eligible?
Examples of potentially eligible expenses include:
- Construction costs.
- Building materials.
- Electrical work.
- Plumbing work.
- Permits and professional services.
- Labour costs.
Routine maintenance and household appliances generally do not qualify.
How Much Can You Claim?
The amount available depends on eligible renovation expenses and the maximum limits established by the CRA.
Because the MHRTC is refundable, eligible taxpayers may receive a benefit even if they owe little or no income tax.
How to Claim the MHRTC
- Confirm that the qualifying individual meets CRA requirements.
- Complete eligible renovations.
- Keep invoices, receipts, and supporting documentation.
- Claim the credit when filing your income tax return.
Who Benefits Most from the MHRTC?
- Families caring for aging parents.
- Households supporting adults with disabilities.
- Homeowners planning multigenerational living arrangements.
- Families looking to create independent living space for relatives.
Official Government Resources
For complete eligibility requirements and claiming instructions, visit the official Government of Canada website.
View Official MHRTC Information
Frequently Asked Questions
Is the credit refundable?
Yes. The Multigenerational Home Renovation Tax Credit is refundable.
Can I claim renovations for my parent?
Yes, if the parent meets the CRA eligibility requirements.
Can multiple family members claim the same renovation?
Special CRA rules apply when more than one person is involved in the claim.
Do I need receipts?
Yes. Supporting documentation should always be retained.
