Your CRA guide to taxes and housing benefits

File your taxes to maximize benefits

The CRA welcomes you to explore the world of housing, taxes, and benefits awareness to help you better manage your housing-related finances.

The housing crisis remains a top priority for many because it has become increasingly challenging for Canadians to find affordable housing and accessible mortgages. Our main objective is to give Canadians the information they need to manage their housing-related finances so they can make the most of their money. Did you know that every year, Canadians are missing out on millions of dollars in benefits and credits by not filing their tax return? The more you know about what’s available to you, the more money you’ll have back in your pocket.

First-time home buyers: The path to homeownership

We know that buying a house is a complex process. Here’s a quick CRA guide to help you learn how you can maximize the benefits and credits available to you. By filing your tax return, you can unlock the path to your future home!

You’re thinking about buying your first home but you are not sure if you will have enough money for a down payment

Sign up for a First Home Savings Account (FHSA)! The FHSA is a registered account that allows you to save for your first home with tax advantages. Contributions are generally tax deductible and withdrawals for the purpose of buying or building a qualifying home are tax-free. Contact your financial institution for more information!
If you have a registered retirement savings plan (RRSP), the Home Buyers' Plan (HBP) allows you to withdraw up to $35,000 from your RRSP to buy or build a qualifying home! You’ll have up to 15 years to repay this amount to your RRSP. The repayment period only starts the second year after the year you withdrew the funds through the plan.

Did you know: You can make a qualifying withdrawal from your FHSA and withdraw from your RRSP under the HBP for the same qualifying home, as long as you meet all of the conditions at the time of each withdrawal.

You just bought your first home and now you’re wondering if there are any credits or rebates available to help with upfront costs

You can claim a non-refundable tax credit of up to $1,500 with the first-home buyer’s tax credit when you acquire a qualifying home.
You may qualify for the goods and services tax / harmonized sales tax (GST/HST) new housing rebate. This rebate will help you recover some of the GST, or the federal part of the HST you paid, for your new or substantially renovated house, if you meet all the requirements.
You may also qualify for other provincial housing rebates for the provincial part of the HST you paid for your home.

Homeowners: Learning to maximize your investment

As a homeowner, there’s a lot you need to consider if you plan on renting, renovating or maintaining your property. These decisions can have major financial and lifestyle effects so it’s important to know that there are existing benefits and tax credits, as well as tax obligations you need to know.

Creating a second dwelling in your home to accommodate a relative

You may be able to claim up to $50,000 of eligible expenses with the multigenerational home renovation tax credit (MHRTC) if they relate to creating a secondary unit to allow a qualifying individual to reside with a qualifying relative. The tax credit is 15% of your costs, up to a maximum of $7,500 for each eligible claim.

You bought an older home and now you are looking to renovate and make the house more accessible

You can claim up to $20,000 with the home accessibility tax credit (HATC). This would provide a tax credit of up to $3,000 for eligible expenses to renovate or alter your home so a qualifying individual can access, or be mobile or functional within.

You own a home and are thinking of renting your property to help supplement your income

Do you earn income through online platforms related to housing and Accommodation Sharing, such as Airbnb, CanadaStays, FlipKey, and Vrbo? If you do, you should know of your tax obligations as a homeowner to stay compliant!

You bought a second property as an investment

If you buy a residential housing unit, including a rental property, or a right to acquire a residential housing unit located in Canada and you sell it within a year, you should know about the Residential Property Flipping Rule. This rule was introduced to make sure that profits from the disposition of properties, including rental properties and assignment sales, are taxed as business income.
The Underused Housing Tax (UHT) is an annual 1% tax on vacant or underused housing. The CRA has published a new online self-assessment tool that can help you find information about specific ownership conditions, including information about exemptions from paying the tax for which you may qualify.

You’re thinking of selling your home

If you sell a house that was solely your principal residence for every year you owned it, you may qualify for the Principal Residence Exemption. This means you will not have to pay tax on the capital gain when you sell it. To benefit from this exemption, you must report and designate the property as your principal residence when filing your tax return for the year the property was sold.

At the CRA, we are dedicated to helping homeowners make the most of their investments and make informed decisions about their housing-related finances. File your taxes to benefit from tax programs so you can make the most of your money.

Other Government of Canada funding for homeownership

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Date modified:: 2023-11-01

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