Renovation tax credits and programs in Canada for 2026: what still exists

For most kitchens, bathrooms and basements there is no federal tax credit or grant in 2026. Two federal income tax credits remain for specific situations: the Multigenerational Home Renovation Tax Credit (MHRTC), for creating a self-contained secondary unit so a senior or an adult with a disability can live with a relative, and the Home Accessibility Tax Credit (HATC), for work that makes a home safer or more accessible for someone 65 or older or eligible for the disability tax credit. Both are worth the lowest federal tax rate on eligible expenses, which is 14% for 2026 after the federal rate cut (14.5% for 2025, 15% before). The Canada Greener Homes Grant has closed (the last day to submit documents was 31 December 2025) and the Canada Greener Homes Loan no longer accepts new applications.

This guide belongs to the renovation cost overview. It is general information, not tax advice; confirm details with the Canada Revenue Agency or an accountant before you plan around a credit.

Multigenerational Home Renovation Tax Credit

What it is

A refundable federal credit (so it can be paid to you even if you owe no tax) claimed on line 45355 of the income tax return. It applies to a qualifying renovation that creates a secondary unit within an eligible dwelling, allowing a qualifying individual to live with a qualifying relative.

Key conditions (summary)

• The qualifying individual is a senior (65 or older at the end of the year the renovation period ends) or an adult who is eligible for the disability tax credit.
• The qualifying relative is an adult relative such as a child, grandchild, parent, sibling, aunt, uncle, niece or nephew, including spouses or partners of those relatives, as defined by the CRA.
• The secondary unit must be self-contained, with its own private entrance, kitchen, bathroom and sleeping area, and the work generally must have the permits and approvals required where you live.
• The credit is generally claimed for the tax year in which the renovation period ends, and it can be claimed for only one qualifying renovation in respect of a qualifying individual.

Amount

Up to $50,000 of qualifying expenditures per qualifying renovation. The credit rate follows the lowest federal rate:

Many web pages still say "15% on up to $50,000". For a renovation completed in 2026, plan with 14% unless the CRA's line 45355 page says otherwise.

Worked example (illustrative)

A family converts a basement into a self-contained suite for a parent aged 70. Eligible expenses, including tax, are $96,000, and the renovation ends in 2026. The credit is 14% × $50,000 = $7,000, because only the first $50,000 counts. The suite's cost is discussed in the secondary suite worked example.

Home Accessibility Tax Credit

A non-refundable credit claimed on line 31285 for eligible renovations that improve access, mobility or functionality, or reduce the risk of harm, for a qualifying individual (65 or older at the end of the year, or eligible for the disability tax credit). Eligible expenses are capped at $20,000 per year (since 2022), and the cap applies per dwelling.

• 2026 credit at 14%: up to 14% × $20,000 = $2,800.
• Typical eligible work: grab bars, walk-in or curbless showers, ramps, stair lifts, wider doorways, lever handles, non-slip flooring.
• Not eligible: routine repairs and maintenance, household appliances, and items whose main purpose is to increase the home's value.

Budget 2025 proposed that, from the 2026 tax year, an expense claimed under the medical expense tax credit can no longer also be claimed under the HATC. Check the CRA's current guidance on whether this has been enacted before you file.

The HATC and MHRTC can sometimes apply to the same project, for example accessibility features built into a new suite, but rules on combining credits are specific; ask the CRA or an accountant.

Canada Greener Homes programs in 2026

Status from Natural Resources Canada's Greener Homes page. Energy-efficiency programs for heat pumps, insulation, windows and solar are mostly provincial or utility programs now. They change often; check your provincial energy agency or utility before you buy, because many require approval before work starts.

Secondary suites and financing

The federal government has also tried to encourage secondary suites through mortgage rules: since 15 January 2025, insured mortgage refinancing has been available to add a secondary suite, subject to CMHC rules on property value and loan-to-value. Terms can change; ask your lender and check CMHC before assuming you qualify. Municipal and provincial suite incentives also exist in some places; ask your city.

Provincial credits and programs

Some provinces have had their own renovation, accessibility or seniors' credits, and Quebec has distinct programs and credits administered by Revenu Québec and other agencies. Programs open and close regularly, so this site does not list them as current. Check:

• your provincial finance ministry or revenue agency for tax credits,
• your provincial housing agency or municipality for suite and accessibility grants,
• your utility or energy agency for efficiency rebates.

Records to keep for any credit

1. Contracts and itemised invoices showing the work, the supplier and the GST/HST number.
2. Proof of payment (no cash without receipts).
3. Permits and inspection records, especially for a secondary unit.
4. Evidence of eligibility (age, disability tax credit approval, relationship).

Related guides

Projects where these credits most often come up are covered in the basement finishing cost guide (suites start as basement projects) and the bathroom renovation cost guide (accessibility features). The sales tax side is in GST/HST on renovations.

FAQ

Is there a federal tax credit for a kitchen or bathroom remodel?

Not in general. Only accessibility work for a qualifying individual (HATC) or a new secondary unit for a qualifying individual (MHRTC) qualifies.

Can I still get the Greener Homes Grant?

No. The grant has closed, and the loan no longer accepts new applications. Look for provincial or utility programs instead.

Does GST/HST count as an eligible expense?

For these credits, the amount you paid, including GST/HST, is generally what counts. Keep invoices that show tax separately.

Sources

• Canada Revenue Agency — lines 45355 (MHRTC) and 31285 (HATC)
• Natural Resources Canada — Canada Greener Homes Initiative status
• Canada Mortgage and Housing Corporation — mortgage insurance and secondary suite refinancing
• Budget 2025 — tax measures, including the HATC change
• Revenu Québec — Quebec tax credits