Multigenerational Home Renovation Tax Credit
Refundable credit of up to $7,000 for 2026 for building a suite so a senior or adult with a disability can live with family. Rules and examples.
The short version
- The multigenerational home renovation tax credit (MHRTC) pays back part of the cost of building a self-contained suite so a senior, or an adult with a disability, can live with family.
- It's refundable: you get it even if you owe no tax. The rate follows the lowest federal tax rate: 14% for 2026, on up to $50,000 of costs, so up to $7,000.
- The suite needs its own private entrance, kitchen, bathroom and sleeping area. A basement apartment, an addition or a garden suite on the same property can all qualify.
- The person is 65 or older at year-end, or 18 or older and eligible for the disability tax credit. The family member is 18 or older: a child, grandchild, parent, grandparent, sibling, aunt, uncle, niece or nephew.
- One claim per senior or disabled adult, for life. Both must move in within 12 months of the work being finished.
Multigenerational Home Renovation Tax Credit
Building a suite for Mom is part family decision, part construction project, part tax planning. The construction part is the expensive one: a properly built basement apartment or garden suite runs well into six figures. The tax part is the easiest money in the project. Seven thousand dollars back for a few receipts and one line on your return, if you know the rules before you start.
Who Qualifies
| Who | Rule |
|---|---|
| Qualifying individual | 65 or older at the end of the year, or 18 to 64 and eligible for the disability tax credit |
| Qualifying relation | 18 or older, and the person's parent, grandparent, child, grandchild, sibling, aunt, uncle, niece or nephew |
| The home | In Canada, owned by the qualifying individual or a qualifying relation |
| Who can claim | The owner (a qualifying relation) or someone who lives there; costs can be split between family members who paid them |
| Timing | Claimed for the year the work is completed; both people intend to live there within 12 months |
Planning a suite for a parent?
Tell the assistant who will live there, their age, who owns the home and what you're building. It checks the MHRTC, the home accessibility credit, HST on the build and the effect on your principal residence.
What You Can Claim
- Yes: contractors and trades (electricians, plumbers, carpenters, architects), building materials, fixtures, equipment rental, plans and permits.
- Yes, if you do the work yourself: materials, rentals and permits, but not the value of your own labour.
- No: appliances, electronics, routine repairs and maintenance, landscaping and outdoor upkeep, financing costs, and work by a family member who isn't registered for GST/HST.
- Not twice: an expense claimed here can't also go on the home accessibility credit or as a medical expense. Put accessibility items like grab bars on whichever credit gives more.
Keep every invoice, with the contractor's GST/HST number; CRA asks for them. The construction invoice analyzer checks that each one has what it needs.
Example
A family builds a $140,000 garden suite on their Ontario property for the wife's 74-year-old mother, finished in 2026. Eligible costs are capped at $50,000, so the credit is $7,000 (14%). It comes off their 2026 tax, or as a refund if they owe less. If two siblings split the cost, each claims their share of the $50,000 cap.
Things to Check Before You Build
- HST: a suite for family, rent-free, usually isn't a rental supply. Rent it out later at market rent and the HST self-supply rules can apply; see garden suites and basement units.
- Principal residence: a family member living rent-free usually doesn't affect your exemption; see renting part of your home for when it does.
- Permits and zoning: Ontario rules on additional units are explained at GardenSuiteOntario.com.
- Other credits for the same person: see the caregiver credit and tax credits for seniors.
MHRTC Questions
How much is the multigenerational home renovation tax credit?
It is a refundable credit at the lowest federal tax rate, 14% for 2026, on up to $50,000 of eligible costs, so up to $7,000. For 2025 the rate was 14.5%.
Who qualifies for the multigenerational home renovation tax credit?
A senior 65 or older, or an adult 18 to 64 eligible for the disability tax credit, moving into a new self-contained secondary unit to live with a qualifying relation such as a child, grandchild, parent, sibling, aunt, uncle, niece or nephew.
Does a garden suite qualify for the MHRTC?
It can, if it is a self-contained unit with a private entrance, kitchen, bathroom and sleeping area, on a property in Canada owned by the qualifying individual or a qualifying relation, and both intend to live there within 12 months.
Can I claim the MHRTC and the home accessibility credit together?
For different expenses, yes. The same expense cannot be claimed under both, or as a medical expense.
Can the MHRTC be claimed more than once?
Only once per qualifying individual over their lifetime, with limited exceptions.
Sources: CRA, Multigenerational home renovation tax credit (line 45355); Who can claim; Expenses you can claim. Checked October 2026. CRA's page shows 14.5% for 2025; the 14% rate for 2026 follows the lowest federal tax rate, as we understand the credit is calculated. The exceptions to the one-claim rule are narrow; check CRA's page if they might apply.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.