# Multigenerational home renovation tax credit (MHRTC): who qualifies, what it pays and how to claim it on line 45355

Source: https://canadataxdesk.com/credits-deductions/multigenerational-home-renovation-tax-credit
Publisher: Canada Tax Desk (canadataxdesk.com), independent editorial site
Topic: Credits and Deductions
Last updated: 2026-10-20

> The multigenerational home renovation tax credit (MHRTC) is a refundable federal credit for building a self-contained secondary unit so a senior 65 or older, or an adult eligible for the disability tax credit, can live with a relative. It covers up to $50,000 of costs per qualifying renovation at the lowest federal rate, worth up to $7,250 for 2025 at 14.5% and $7,000 for 2026 at 14%. You claim it on line 45355 with Schedule 12 for the year the work is finished.

## Key facts

- Type of credit: Refundable, federal only
- Expense limit: $50,000 per qualifying renovation
- Maximum credit: $7,250 for 2025 (14.5%); $7,000 for 2026 (14%)
- Where to claim: Line 45355, using Schedule 12
- Year to claim: The year the renovation is completed
- Lifetime limit: One qualifying renovation per qualifying individual

## What is the multigenerational home renovation tax credit?

The multigenerational home renovation tax credit (MHRTC) is a refundable tax credit for a renovation that creates a self-contained secondary unit so that a senior, or an adult eligible for the disability tax credit (DTC), can live with a qualifying relation ([CRA, line 45355](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-45355-mhrtc.html)). It is set out in section 122.92 of the Income Tax Act.

You can claim up to $50,000 of qualifying expenditures for each completed qualifying renovation. The CRA's 2025 page puts the credit at 14.5% of those costs, a maximum of $7,250 per claim. The rate follows the lowest federal tax rate, which is 14% for 2026, so the 2026 maximum works out to $7,000; the CRA will confirm it in the 2026 tax package.

Because the credit is refundable, it is paid to you even if you owe no tax. There is no provincial or territorial version; the CRA lists it as federal only.

## Who qualifies for the MHRTC?

The CRA uses four defined terms. All of them must line up for the renovation to qualify.

| Term | Who or what fits |
| --- | --- |
| Qualifying individual (the person the unit is for) | Age 65 or older at the end of the year the renovation is completed, or aged 18 to 64 and eligible for the DTC at any time in that year |
| Qualifying relation | Age 18 or older at the end of the year, and a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece or nephew of the qualifying individual or of their cohabiting spouse or common-law partner |
| Eligible individual (who claims) | Resident in Canada all year, and either lives or intends to live in the home within 12 months after the renovation (the qualifying individual, their spouse or partner, or a qualifying relation), or owns the home and is a qualifying relation |
| Eligible dwelling | A home in Canada owned by the qualifying individual or a qualifying relation (or a trust for either) during the renovation year, where both normally live within 12 months after the work ends; land is usually limited to half a hectare |

Who and what must qualify for the multigenerational home renovation tax credit (CRA, who can claim)

A person under 65 qualifies only through the DTC. If an application is pending, our [disability tax credit guide](https://canadataxdesk.com/disability-tax-credit) explains the process; the DTC must apply for the year the renovation is completed.

## What counts as a secondary unit?

The renovation must create a secondary unit, which the CRA defines as a self-contained housing unit with a private entrance, a kitchen, a bathroom and a sleeping area. A bedroom added to the main house, or a basement room that shares the family kitchen, does not meet the test.

- The unit can be newly built, or created from living space that did not already meet the local requirements for a secondary unit.
- It must meet local permits, building codes and by-laws.
- A separate structure on the same property, such as a garden suite, can qualify.
- The renovation must be completed in the tax year you claim, whenever it started.

## Which expenses can you claim for the MHRTC?

An expense must be reasonable and directly attributable to the qualifying renovation. The CRA accepts goods and services, including the work of electricians, plumbers, carpenters and architects, permits, and equipment rentals. If you do the work yourself, you can claim building materials, fixtures, equipment rentals, building plans and permits, but not the value of your own labour or tools.

### Expenses that do not qualify

- Annual, recurring or routine repair or maintenance.
- Household appliances and electronic home-entertainment devices.
- Housekeeping, security monitoring, gardening, outdoor maintenance or similar services.
- Financing costs for the renovation.
- Goods or services from a person not dealing at arm's length with you, unless that person is registered for GST/HST.
- Expenses that were or can be reimbursed, and expenses without receipts.
- Expenses already claimed under the medical expense tax credit or the home accessibility tax credit.

Reduce your eligible expenses by any reimbursement or assistance you received or are entitled to, including GST/HST rebates.

## Can you claim the MHRTC and the home accessibility tax credit?

You can claim both credits for one project, but never for the same expense. The CRA excludes from the MHRTC any cost already claimed under the [home accessibility tax credit](https://canadataxdesk.com/credits-deductions/home-accessibility-tax-credit) or the [medical expense tax credit](https://canadataxdesk.com/credits-deductions/medical-expenses-tax-credit), so each invoice goes on one credit only.

Grab bars, a walk-in shower or a ramp in a new suite could fit either credit. Because the MHRTC is refundable and has the larger limit, it often pays more, but if your MHRTC costs already exceed $50,000, putting the accessibility items on the HATC (up to $20,000 a year, non-refundable) can recover more of the total.

## How and when do you claim the MHRTC?

Claim the credit for the year the renovation period ends. The period starts when the first qualifying expense is made or incurred, for example when you apply for a building permit, and ends when the work is completed, such as when it passes final inspection. The CRA's example: work that began in April 2025 and was completed in July 2026 is claimed on the 2026 return.

1. Confirm the qualifying individual's age or DTC status for the year of completion.
2. Collect every invoice, with the vendor's name, business address and GST/HST number, a description of the work and its address, the dates and proof of full payment.
3. Complete Schedule 12, Multigenerational Home Renovation Tax Credit, capping eligible expenses at $50,000 per renovation.
4. Enter the credit on line 45355 of your return.
5. If family members shared the costs, each claims only the expenses they paid, and the combined claims cannot exceed the maximum.

### Worked example: a basement suite for a parent

Marc and his sister co-own the house where Marc's family lives. They share the cost of a $68,000 basement suite there, with its own entrance, kitchen and bathroom, for their 72-year-old mother, who moves in. The work passes final inspection in September 2026. Eligible expenses are capped at $50,000, so the 2026 credit is $50,000 x 14% = $7,000. Marc paid $40,000 and his sister $28,000. Each can claim only expenses they paid, and together they cannot claim more than $50,000; splitting it in proportion to what each spent gives Marc about $29,412 of expenses and a $4,118 credit, and his sister about $20,588 and a $2,882 credit.

Only one renovation can be claimed for a qualifying individual in their lifetime, but you can claim more than one qualifying renovation in the same year if they are for different people. Families planning care at home should also look at the [Canada caregiver credit](https://canadataxdesk.com/credits-deductions/canada-caregiver-credit).

## Common questions

### Is the multigenerational home renovation tax credit refundable?

Yes. It is paid to you even if you owe no tax, which makes it different from the home accessibility tax credit.

### How much is the MHRTC worth for 2026?

The expense limit is $50,000, and the credit follows the lowest federal rate of 14% for 2026, so the maximum is $7,000. For 2025 it was $7,250 at 14.5%.

### Can I claim the MHRTC more than once?

Only one renovation can be claimed for each qualifying individual in their lifetime. Different qualifying individuals can each have their own renovation.

### Does a garden suite or laneway house qualify?

A separate structure on the same property can qualify if it is a self-contained unit with its own entrance, kitchen, bathroom and sleeping area and meets local permits and by-laws.

### Can my brother do the work and still let me claim it?

Work by a person not dealing at arm's length with you, such as a relative, only qualifies if that person is registered for GST/HST. Materials you buy from an arm's-length store still count.

### Which year do I claim if the project runs over two years?

Claim it on the return for the year the renovation is completed, for example when it passes final inspection, not the year it started.

## Sources

- [Line 45355, Multigenerational home renovation tax credit](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-45355-mhrtc.html)
- [MHRTC: Who can claim](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-45355-mhrtc/who-claim-mhrt.html)
- [MHRTC: Expenses you can claim](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-45355-mhrtc/expenses-claim-mhrtc.html)
- [MHRTC: How to claim](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-45355-mhrtc/how-claim-mhrtc.html)
- [Schedule 12, Multigenerational Home Renovation Tax Credit](https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/5000-s12.html)
- [Income Tax Act, section 122.92](https://laws-lois.justice.gc.ca/eng/acts/I-3.3/page-101.html)