The Home Accessibility Tax Credit (HATC) is a non-refundable federal tax credit designed to assist Canadians with the costs of making their homes more accessible. Whether you’re planning renovations for safety or mobility, this guide will help you understand eligibility criteria, claimable expenses, and how to make the most of this program.
Table of Contents
Who is Eligible for the Home Accessibility Tax Credit?
Qualifying Individual
A qualifying individual is one of the following:
- 65 years or older at the end of the year.
- Eligible for the Disability Tax Credit (DTC) at any time during the year.
Eligible Individual
An eligible individual can be:
- The spouse or common-law partner of the qualifying individual.
- A parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew of the qualifying individual or their spouse or common-law partner.
In addition, eligible individuals must meet specific criteria if they claim caregiver-related credits, such as the Canada Caregiver Amount or the Eligible Dependant Amount.
$80,000 Canada Secondary Suite Loan Program 2025 with Low interest rate of 2%
Experts’ Predictions for Canada’s Housing Market in the Coming Year
Calgary Housing Market Forecast 2024, 2025, 2026 & 2030
Toronto Housing Market Forecast 2025: Trends, Insights, and Predictions
What Types of Dwellings Qualify?
An eligible dwelling must:
- Be a housing unit located in Canada.
- Be owned by the qualifying individual or eligible individual.
- Be ordinarily inhabited by the qualifying individual during the year.
The land surrounding the dwelling is included if it does not exceed ½ hectare (1.24 acres). Note that a qualifying individual may have multiple eligible dwellings in a year, but the total expenses across all dwellings cannot exceed $20,000.
Canada Carbon Rebate: January 2025 Payment Date and Full Quarterly Schedule
How Much is CPP going up in 2025?
Do Retired People Get the $250 Inflation Rebate in Canada in 2025?
Eligible Renovations and Expenses
Qualifying Renovations
A qualifying renovation must:
- Be enduring in nature and integral to the dwelling.
- Either:
- Help the qualifying individual gain access to, move around, or be functional within the dwelling.
- Reduce the risk of harm within or when accessing the dwelling.
Examples include:
- Installing wheelchair ramps or grab bars.
- Building walk-in bathtubs or wheel-in showers.
Eligible Expenses
Expenses directly related to the renovation, such as:
- Materials and fixtures (e.g., flooring, grab bars).
- Equipment rentals.
- Professional fees for architects, plumbers, or electricians.
- Building permits and plans.
If you perform the work yourself, you can claim material costs but not the value of your labor or tools.
Work by Family Members
Work performed by family members is only eligible if they are registered for GST/HST under the Excise Tax Act.
Ineligible Expenses
The following are not eligible under the HATC:
- Routine maintenance or repairs.
- Purchase of appliances or home entertainment devices.
- Services like housekeeping, gardening, or security monitoring.
- Renovations primarily for increasing the dwelling’s value.
How to Maximize Your Claim
Claim Limits
- You can claim up to $20,000 per year in eligible expenses.
- If multiple qualifying individuals reside in the same dwelling, the total expenses cannot exceed $20,000.
Coordination with Medical Expense Tax Credit (METC)
If an expense qualifies for both the HATC and the METC, you can claim it under both credits to maximize your tax savings.
Vendor Rebates and Incentives
Vendor discounts or incentives do not reduce the eligible expense amount. However, government grants or assistance do not lower the HATC claim.
Filing Your Tax Return
To claim the HATC:
- Complete the chart for line 31285 using your Federal Worksheet.
- Enter the amount on line 31285 of your return.
- Retain all receipts and documentation in case of an audit.
Additional Tips
- Hire Professionals: Hiring certified contractors ensures the quality of work and simplifies the claim process.
- Keep Records: Save all receipts, contracts, and invoices.
- Seek Advice: Consult a tax professional to ensure you maximize your benefits.
Learn More
Visit the Canada Revenue Agency (CRA) website or speak to a tax professional for further details on the Home Accessibility Tax Credit.
Transform your home into a safer and more accessible space—and enjoy the financial benefits of the HATC while doing so!
Leave a Reply