Home accessibility tax credit in Ontario: renovation credits for staying put

If you are weighing grab bars, a walk-in shower or a ground-floor bedroom against selling, the tax side is worth a look. Ontario residents can use three programs: the federal Home Accessibility Tax Credit (HATC), the federal Multigenerational Home Renovation Tax Credit (MHRTC) and the Ontario Seniors Care at Home Tax Credit. This guide sets out each one as the Canada Revenue Agency (CRA) and ontario.ca describe it, then looks at how renovating compares with moving.

The federal Home Accessibility Tax Credit (HATC)

The HATC is claimed on line 31285 of the federal return. The CRA describes it as a non-refundable credit for qualifying renovation expenses that let a qualifying individual gain access to the home, be mobile or functional within it, or reduce the risk of harm. A qualifying individual is someone eligible for the disability tax credit or aged 65 or older. An eligible individual, such as a spouse, family member or caregiver, can claim on that person's behalf.

The CRA's HATC page states that the annual expense limit rose from $10,000 to $20,000 starting in 2022 and that the credit is calculated at 15 per cent, for a maximum of $3,000 a year. Its line 31285 page gives the same $20,000 limit for 2024 and 2025 and says that if more than one qualifying individual shares a dwelling, the combined limit is $20,000. The credit is non-refundable, so it only reduces tax you owe.

What expenses qualify for the HATC

According to the CRA, eligible expenses include materials, fixtures, equipment rentals and permits for work that helps the qualifying individual get into the home, move around in it or avoid injury. The page says you cannot claim routine maintenance, appliances, entertainment devices or renovations whose main purpose is to increase the value of the home. It also says the value of your own labour is excluded and that work done by family members counts only if they are registered for GST/HST.

Two further points from the CRA page matter when you plan. The credit is not reduced by government assistance, and you can claim the same expense as both a home accessibility expense and a medical expense where it qualifies for each. Keep invoices, receipts and proof of payment. The CRA decides whether a specific renovation qualifies, so describe your project to it or to an accountant before the contractor starts. See the CRA's line 31285 page for the current year.

The Multigenerational Home Renovation Tax Credit

The MHRTC is a different tool for a different project: creating a secondary unit so that an older relative or an adult with a disability can live with family. The CRA says the credit is refundable and equals 14.5 per cent of up to $50,000 of qualifying costs for each qualifying renovation, for a maximum of $7,250. It is claimed on line 45355 and is federal only.

The CRA's eligibility page sets conditions that all apply. The secondary unit must be self-contained, with a private entrance, kitchen, bathroom and sleeping area, and either newly built or created from existing space. The renovation must be completed in the tax year of the claim. A qualifying individual, who is 65 or older or 18 to 64 and eligible for the disability tax credit, must live there with a qualifying relative. The CRA calls it the one claim allowed for each qualifying individual, and says the home must be owned by the qualifying individual or a qualifying relation. The unit must also meet local permit, code and by-law requirements, so ask your municipality what applies before you design anything.

The Ontario Seniors Care at Home Tax Credit

Ontario's credit is not a renovation credit, but it can overlap. Ontario says it is for people who turned 70 in the year, or whose spouse or partner did, and who are Ontario residents at year end. The credit is up to 25 per cent of claimable medical expenses up to $6,000, for a maximum of $1,500. It is refundable and is reduced by 5 per cent of family net income over $35,000, which ontario.ca says phases it out around $65,000.

The ontario.ca page lists hearing aids, wheelchairs, bathroom safety equipment, hospital beds, attendant care and home modifications for mobility among the common claimable costs, and says claimable expenses are eligible medical expenses minus 3 per cent of net income. You claim it on Form ON479 with your return, starting with the 2022 tax year. Because the rules link to medical expense lines on the federal return, ask the CRA at 1-800-959-8281, the number ontario.ca gives, whether a particular item qualifies.

The three credits side by side

Sources: Canada Revenue Agency and ontario.ca pages read October 2026. HATC and MHRTC figures are from the CRA pages for recent tax years; check the page for the year you are claiming.

Aging in place vs moving: where the credits help and where they stop

A credit returns a fraction of what you spend, so it lowers the cost of a project without making a large one cheap. A $20,000 renovation under the HATC reduces your tax by at most $3,000, according to the CRA's rate. That is meaningful, but it will not decide the question on its own. A project that leaves the stairs, the lot or the distance from care unchanged may only postpone the decision.

Compare options on total cost and on what each one solves. Renovating keeps your neighbours, your doctor and your address. Moving to a condo, bungalow or retirement setting can remove the problem and the upkeep, but brings closing costs, a possible land transfer tax on the purchase and the work of a move. Our guide to aging in place or moving covers home and community care, retirement homes and long-term care. For home types see condo, townhouse or house, and for purchase costs read land transfer tax in Ontario.

Who claims, and in which year

The HATC and the MHRTC are both claimed on the federal return for the year the work is done, and the Ontario credit is claimed with the Ontario return. Two or more people can be involved. For the HATC, the CRA says an eligible individual such as a spouse, family member or caregiver may claim for the qualifying individual. For the MHRTC, the CRA says several people can share the costs and split the credit, but each claimant must meet the eligibility rules on their own and be a Canadian resident for the full calendar year.

That matters when an adult child pays for a project in a parent's home. Who may claim, and how the amounts are divided, depends on the relationship, who owns the home and who lives in it. Do not assume the person who writes the cheque is the person who claims. Ask the CRA, or an accountant who has done family arrangements like this, to confirm before the work starts, and keep one folder of invoices that shows who paid for what and when.

Questions to put to the CRA or an accountant

Credits depend on details a web page cannot settle for your project. These questions are worth asking before you sign a contract.

• Does my specific renovation meet the test of improving access, mobility or safety for the qualifying individual?
• Which parts of the quote count as materials, permits or equipment rentals, and which are routine maintenance or value-adding work?
• Can the same expense be claimed under both the HATC and the medical expense credit in my case?
• If we build a secondary unit, does the person who will live there qualify, and has anyone already made an MHRTC claim for them?
• Is my family net income likely to reduce the Ontario credit?

Write the answers down with the date and the name of the person or office. If a call centre gives you an answer that affects thousands of dollars, ask where it is written.

Renovating versus selling: what else to weigh

Tax credits are one line in a larger comparison. A renovation changes one part of a house; a sale changes where you live. Think about what you would still have to manage after the work: snow, a large yard, stairs to a laundry room, a drive to the nearest pharmacy. Consider also how long the improvements would serve you. A walk-in shower solves a daily problem for years, while a project designed around one health condition may need to change if your needs do.

If you decide to sell, the credits you claimed do not change the sale itself, but the work may affect what you tell a buyer. Ontario sellers have disclosure duties set out in our guide to seller disclosure in Ontario. Keep permits and invoices for any renovation, because a buyer or their lawyer may ask for them.

Before you hire a contractor

• Describe the project to the CRA or an accountant and ask which credits could apply.
• Get itemized invoices that separate materials from labour and from any routine maintenance.
• Ask your municipality whether the work needs a building permit, which the CRA lists among eligible costs.
• For a secondary unit, ask the municipality about zoning and code requirements before design starts.
• Keep receipts and proof of payment with your tax records.
• If you may sell in a few years, ask a real estate agent which changes buyers value; see preparing an older home for sale.

Running the numbers on staying or selling

Put the after-credit cost of the renovation next to the estimated costs of selling. The net proceeds calculator and the guide to estimating net proceeds help you see what a sale might leave you with. If a sale would be a principal residence, read capital gains and selling your principal residence. The costs and money page covers property tax relief for older homeowners, and resources lists agencies that help with home care. If you want to talk through selling, contact us.