Home Accessibility Tax Credit

If you or a loved one have taken actions to make your home safer or more accessible—such as installing a walk-in tub, a wheelchair ramp, or even a stairlift—you might qualify for a valuable tax credit. The Home Accessibility Tax Credit (HATC) is a non-refundable federal tax credit designed to help offset the cost of renovations that make a home more functional for seniors and people with disabilities.

This matters when you are planning renovations, preparing for aging in place, or supporting a parent or dependent with mobility needs. Whether you are adapting your own home or helping someone else, the HATC can provide significant tax relief while promoting long-term safety and independence.

Who Is Eligible for the HATC?

The HATC is available to individuals who are:

• Aged 65 or older at the end of the tax year, or

• Eligible for the Disability Tax Credit (DTC) at any time during the year

You can claim the credit if you incurred eligible expenses to renovate:

• Your own principal residence

• The principal residence of a spouse, common-law partner, or relative who qualifies (such as a parent or child)

The credit is also available to caregivers, as long as the eligible person lives in the home and the renovations benefit them.

What Renovations Qualify?

To be eligible, renovations must be permanent and directly related to improving the accessibility or safety of the home for the qualifying individual. The improvements must either:

• Allow the person to access the home more easily, or

• Help them move around the home more safely and comfortably

Common eligible expenses include:

• Installing non-slip flooring

• Adding grab bars or handrails

• Building a wheelchair ramp or elevating lift

• Widening doorways

• Replacing a bathtub with a walk-in shower or accessible tub

• Lowering cabinets or countertops

Renovations must be performed by qualified professionals. Expenses related to general maintenance, aesthetic upgrades, or items that are not permanently affixed (such as portable ramps or furniture) do not qualify.

How Is the Credit Calculated?

The HATC is calculated as 15 percent of up to $20,000 in qualifying renovation expenses, which means you can claim up to $3,000 in tax savings per year.

This is a non-refundable credit. That means it reduces your taxes payable but will not generate a refund beyond what you owe.

Here’s an example:

You can claim this credit in addition to the Medical Expense Tax Credit if the renovation also qualifies as a medical expense. However, you cannot double-claim the same dollar amount. The amount claimed under one credit must be reduced when claimed under another.

When and How to Claim

The HATC is claimed when you file your annual tax return. You must report eligible expenses on Schedule 12 and include them on line 31285 of your return.

You should also retain documentation such as:

• Detailed invoices

• Proof of payment

• Contractor agreements

• Photographs of before-and-after, if available

If you are unsure whether a specific expense qualifies, check with a tax professional or refer to the CRA’s guidelines. At Optimize, we help you identify all eligible credits during your tax planning review, especially when life changes call for home renovations.

Why the HATC Matters in Your Financial Plan

Adapting a home for accessibility is a meaningful but often expensive endeavor. The HATC helps alleviate some of that financial burden, especially for older Canadians or those living with mobility issues. It can also support multi-generational households or caregivers making adjustments for aging parents.

You might think about this the next time you:

• Modify your home to support aging in place

• Welcome a parent or relative who needs assistance

• Plan for renovations due to a new medical diagnosis or physical limitation

At Optimize, we include programs like the HATC in your tax strategy so your financial resources align with your lifestyle needs. We also coordinate your approach to ensure the HATC works alongside the Disability Tax Credit and medical expense claims when applicable.