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What is the Multigenerational Home Renovation Tax Credit (MHRTC)?
What is the Multigenerational Home Renovation Tax Credit (MHRTC)?

The MHRTC is a refundable credit to help families with costs of creating a secondary unit for a senior or disabled relative.

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Written by Samuel Jones
Updated over a month ago

How Much Can You Claim?

  • You can claim 15% of eligible renovation costs, up to a maximum of $50,000.

  • The credit provides a maximum tax benefit of $7,500.

Who Qualifies?

You may qualify if:

  • The renovations create a self-contained secondary unit within your primary residence.

  • The unit is intended for a senior relative (65 or older) or a person eligible for the Disability Tax Credit (DTC).

  • You are the owner of the home where the renovation takes place.

What Renovations Are Eligible?

Eligible renovation expenses must:

  • Be directly related to constructing or adapting the secondary dwelling unit

  • Include costs such as:

    • Design and permits

    • Materials and labor

    • Modifications for accessibility

  • Be incurred after January 1, 2023

Ineligible Expenses

The following costs cannot be claimed:

  • Furniture and appliances

  • Housekeeping or cleaning costs

  • Landscaping or aesthetic improvements

  • Repairs not related to the creation of the secondary unit

How to Claim the MHRTC

  1. Track Your Expenses: Keep all receipts and records related to the renovation.

  2. File with Your Tax Return: Report the eligible costs on your tax return.

  3. Use the MHRTC Form: Complete the specific form for the Multigenerational Home Renovation Tax Credit and attach it to your return.

Why This Matters

The MHRTC makes it more affordable to create living spaces for family members, ensuring they can live comfortably while maintaining close family ties.

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