Are you planning home renovations to improve accessibility for yourself or a loved one? Did you know that the Home Accessibility Tax Credit (HATC) can help reduce the financial burden of these modifications? Whether you’re installing ramps, widening doorways, or adding grab bars, the HATC offers valuable support for seniors and individuals with disabilities in Canada.
But who qualifies for this tax credit, and what renovations are eligible? How can you maximize your claim while avoiding common mistakes?
In this guide, we’ll walk you through the eligibility requirements, qualifying expenses, and the step-by-step process to claim the HATC. Let’s ensure your home becomes more accessible without breaking the bank!
What Is the Home Accessibility Tax Credit?
The Home Accessibility Tax Credit (HATC) is a non-refundable tax credit introduced by the Canadian government to assist seniors and individuals with disabilities in making their homes safer and more accessible. It allows eligible individuals to claim up to $10,000 in qualified home renovation expenses per year.
These renovations must be permanent and directly improve the individual’s ability to access, move within, or function safely in their home. Examples of qualifying modifications include installing ramps, stairlifts, grab bars, and widening doorways.
The HATC is designed to reduce the financial burden of necessary accessibility improvements, enabling individuals to maintain their independence and quality of life.
Both homeowners and eligible family members who support a qualifying individual can take advantage of this credit. However, the total expenses claimed cannot exceed the yearly limit.
Who Is Eligible for the Home Accessibility Tax Credit?
Understanding eligibility for the Home Accessibility Tax Credit (HATC) is crucial to ensure that you can take full advantage of this benefit. The eligibility criteria are based on three key components: qualifying individuals, eligible individuals, and eligible dwellings.
Qualifying Individual
A qualifying individual is someone who directly benefits from the home renovations. They must meet one of the following conditions:
- Be 65 years of age or older at the end of the tax year
- Be eligible for the Disability Tax Credit (DTC) at any point during the year
These criteria ensure that the credit is available to those who need accessibility modifications the most, such as seniors and individuals with disabilities.
Eligible Individual
An eligible individual can claim the tax credit on behalf of a qualifying individual. They must meet one of these conditions:
1. Be a spouse or common-law partner of the qualifying individual
2. Be a relative (e.g., parent, child, sibling, or grandchild) of the qualifying individual who:
- Claimed (or could have claimed) the Canada Caregiver Amount for the qualifying individual
- Is financially supporting a qualifying individual due to their mental or physical infirmity
This provision allows family members to support their loved ones by funding essential renovations.
Eligible Dwelling
To qualify, the renovation must take place in an eligible dwelling, defined as:
- A home in Canada that is either owned by the qualifying or eligible individual
- A residence that is ordinarily inhabited by the qualifying individual during the year
These requirements ensure that only primary residences are eligible for the credit, excluding vacation homes or other secondary properties.
Understanding these eligibility factors can help you determine whether you or someone you care for can claim the HATC for home accessibility improvements.
What Home Renovations Qualify for the Home Accessibility Tax Credit?
Not all renovations are eligible for the Home Accessibility Tax Credit (HATC). To qualify, the renovation must meet specific criteria and have a lasting impact on the accessibility, safety, or mobility of the qualifying individual within the dwelling. Here’s a breakdown of eligible and ineligible renovations:
Eligible Renovations
Qualifying renovations must meet one of the following conditions:
1. Enhance Mobility and Accessibility
Renovations that help the qualifying individual gain access to or move within the home.
Examples:
- Installing ramps or stairlifts
- Widening doorways
2. Improve Safety and Reduce Risk
Modifications designed to reduce the risk of harm to the qualifying individual.
Examples:
- Installing grab bars or handrails
- Adding non-slip flooring
Additionally, the renovation must be a permanent modification to the home, not a temporary or removable feature.
Eligible Expenses
Expenses directly related to the qualifying renovation can be claimed. These include:
- Building materials and fixtures (e.g., ramps, handrails)
- Equipment rentals for the renovation
- Professional labour costs (e.g., electricians, plumbers)
- Permits and building plans
Note: If you perform the work yourself, the cost of your labour or tools is not eligible.
Ineligible Renovations and Expenses
Some expenses are specifically excluded from the HATC, such as:
- Routine repairs and maintenance (e.g., repainting, roof repairs)
- Household appliances (e.g., refrigerators, washing machines)
- Electronic devices (e.g., home theater systems)
- Gardening, housekeeping, or outdoor maintenance services
- Renovations aimed primarily at increasing property value
Additional Considerations
- Condominium or Co-operative Housing: Shared costs for common areas (e.g., lobby ramps) may qualify for the HATC.
- Dual-use Dwellings: If part of the home is used for business or rental income, only personal-use areas can be claimed. Expenses for shared improvements (e.g., a ramp) must be divided between personal and income-earning use.
- Medical Expense Tax Credit: If an expense qualifies as both a medical and home accessibility expense, it can be claimed under both credits.
These guidelines ensure that only necessary, accessibility-related expenses are claimed under the HATC, offering financial relief to those who need it most.
How Much Can You Claim Under the Home Accessibility Tax Credit?
The Home Accessibility Tax Credit (HATC) allows qualifying individuals or their supporting family members to claim up to $10,000 in eligible home renovation expenses annually. This limit is applicable per eligible dwelling, ensuring that necessary modifications are financially supported without exceeding the designated threshold. However, there are specific scenarios and limits to consider:
Claim Limit for Multiple Dwellings
If a qualifying individual has more than one eligible dwelling in a year (e.g., due to moving), the total claimable expenses across all such dwellings cannot exceed $20,000. This ensures that the tax credit provides adequate support while maintaining a cap on total claims.
Shared Claims for Joint Ownership
When multiple qualifying individuals share a single eligible dwelling (e.g., two seniors living together), the maximum allowable claim remains $10,000 per dwelling. This amount can be split between the qualifying individual(s) and eligible family members. If disagreements arise over the claim distribution, the Canada Revenue Agency (CRA) will determine the amounts.
Additional Considerations for Claims
- Medical Expense Tax Credit (METC): If an eligible expense qualifies as both a home accessibility expense and a medical expense, it can be claimed under both credits.
- Condominium and Co-operative Housing: For shared living arrangements, such as condos or co-operative housing, expenses for common area renovations (e.g., installing ramps in shared lobbies) are also eligible. These costs must be proportionally allocated to the individual’s share.
- Vendor Rebates and Government Grants: Government grants, forgivable loans, or vendor rebates do not reduce the eligible expense amount for HATC claims.
Claim Limits and Scenarios
| Scenario | Maximum Claimable Amount |
| Single eligible dwelling (per year) | $10,000 |
| Multiple dwellings in a year (moving) | $20,000 (combined for all dwellings) |
| Shared dwelling (multiple individuals) | $10,000 (total for the dwelling) |
By understanding these claim limits and related considerations, you can maximize the benefits of the Home Accessibility Tax Credit while staying compliant with CRA guidelines.
What Documents Are Required to Claim the Home Accessibility Tax Credit?
To successfully claim the Home Accessibility Tax Credit (HATC), you must provide appropriate documentation to support your eligible expenses. Properly organizing and submitting these documents is crucial, as incomplete or inaccurate records could delay or invalidate your claim. Here’s a breakdown of the required documents and the information they should contain:
Key Supporting Documents
1. Invoices and Receipts
These must detail the type and quantity of goods purchased or services provided.
Include the following:
- Name and business address of the vendor or contractor
- GST/HST registration number (if applicable)
- Date of purchase or service completion
- Description of goods or services provided
- Amount paid and proof of payment (e.g., credit card slips, cancelled cheques)
2. Delivery and Work Completion Slips
- For materials or equipment delivered to your home, keep the delivery slip as proof.
- For services performed, obtain a record of the work done, including the address where it was completed.
3. Statements for Shared Housing Expenses
If you live in a condominium or co-operative housing, request a statement from the corporation.
The statement should include:
- Total cost of renovations or alterations for common areas
- Your proportional share of the expenses
4. Agreements or Contracts
If you hired a professional contractor, keep copies of signed contracts or agreements detailing the scope of the renovation and associated costs.
Important Notes for Documentation
- Work Performed by Family Members: If a family member performed the renovation, the expense is eligible only if they are registered for GST/HST.
- Professional Services: Work done by licensed professionals (e.g., electricians, carpenters) is generally eligible, provided you have detailed invoices.
- GST/HST Verification: To confirm a contractor’s GST/HST registration, consult the GST/HST Registry on the CRA website.
Example Checklist for Documentation
| Document | Details to Include |
| Invoice | Vendor details, GST/HST number, itemized list of goods/services, amount |
| Receipt | Proof of payment (credit card slip, cancelled cheque) |
| Delivery Slip | Date and details of goods delivered |
| Contractor Agreement | Scope of work, cost breakdown |
| Condominium Statement | Common area expenses and your share |
Organizing your documents properly ensures a smooth claim process and helps you avoid any issues during a CRA audit.
How to File Your Claim: Step-by-Step Guide
Filing your claim for the Home Accessibility Tax Credit (HATC) is a straightforward process, provided you have all the necessary documentation. This step-by-step guide will help you ensure your claim is accurate and compliant with Canada Revenue Agency (CRA) requirements.
Step 1: Gather Supporting Documents
Before starting your tax return, ensure that all your supporting documents are in order, including:
- Receipts and invoices for eligible expenses
- Proof of payment (e.g., credit card slips, cancelled cheques)
- Delivery slips and work completion records
- Statements for shared housing expenses (if applicable)
Step 2: Complete the Federal Worksheet
Use the Federal Worksheet provided by the CRA to calculate your eligible expenses. Enter all qualifying home renovation costs, ensuring they do not exceed the annual maximum of $10,000 per eligible dwelling or $20,000 for multiple dwellings.
Step 3: Fill Out Line 31285
On your income tax and benefit return, locate Line 31285 for home accessibility expenses. Enter the total amount of eligible expenses calculated from your Federal Worksheet.
Step 4: Submit Your Tax Return
File your completed tax return by the CRA’s annual deadline (typically April 30). Include all relevant forms and ensure your supporting documents are available in case of a CRA review.
Step 5: Split the Claim (if applicable)
If more than one person is claiming the HATC for the same eligible dwelling, ensure the total claim does not exceed the $10,000 limit. Each claimant should specify their share of the expenses on their respective tax returns.
Step 6: Retain Records
Keep your documentation for at least six years in case the CRA requests proof of your claim. Proper organization of receipts, invoices, and contracts will simplify the process if an audit occurs.
Important Tips for Filing
- Avoid Errors: Double-check calculations and ensure all eligible expenses are correctly categorized.
- Consult a Professional: If you’re unsure about any part of the process, consider consulting a tax professional to avoid mistakes.
- CRA Online Services: Use CRA’s online tools to verify your claim status and manage your tax account.
By following these steps, you’ll ensure a smooth and successful claim for the Home Accessibility Tax Credit.
What are the Common Mistakes to Avoid When Claiming the Home Accessibility Tax Credit?
When claiming the Home Accessibility Tax Credit (HATC), even minor errors can lead to delays, denied claims, or unnecessary audits by the Canada Revenue Agency (CRA). To ensure a smooth process, here are the most common mistakes to avoid:
1. Claiming Ineligible Expenses
Not all renovation costs qualify for the HATC. Avoid claiming:
- Routine maintenance or repairs (e.g., repainting walls, fixing leaks)
- Household appliances (e.g., refrigerators, washing machines)
- Entertainment devices (e.g., televisions, home theatre systems)
- Landscaping, gardening, or security system fees
Make sure your expenses meet the eligibility criteria, focusing on permanent modifications that improve mobility, safety, or accessibility within the dwelling.
2. Exceeding the Maximum Claim Amount
The maximum eligible expenses you can claim are:
- $10,000 per eligible dwelling per year
- $20,000 total for multiple dwellings in a year (e.g., if the individual moves)
Submitting expenses beyond these limits will result in partial disqualification of your claim. Always calculate your expenses carefully.
3. Improper Documentation
Failing to provide proper documentation is one of the most common reasons for claim denials. Ensure your receipts and invoices include:
- Vendor/contractor details (name, address, GST/HST number)
- Description of goods or services
- Proof of payment (e.g., receipts, credit card slips, cancelled cheques)
Missing or incomplete records can result in delays or rejection.
4. Ignoring Shared Expense Rules for Condos or Co-ops
If you live in a condominium or co-operative housing, only your share of the renovation costs for common areas (e.g., lobby ramps, elevators) is eligible. Obtain a statement from the housing corporation detailing your share of the total expenses.
5. Claiming Expenses for Business or Rental Use
If part of your dwelling is used for business or rental income, you can only claim expenses for the personal-use areas. Expenses for common areas (e.g., a ramp or handrails) must be prorated between personal and income-generating use.
6. Failing to Split Claims Correctly
When multiple individuals (e.g., spouses or family members) claim the HATC for the same eligible dwelling, the total claim cannot exceed $10,000. If the amounts are not split correctly, the CRA may intervene and adjust the claims.
7. Missing the Filing Deadline
Ensure you file your tax return by the CRA’s annual deadline, typically April 30. Late filings may result in missed opportunities to claim the HATC for the year.
8. Overlooking Medical Expense Tax Credit Eligibility
Some expenses may qualify as both home accessibility expenses and medical expenses. Failing to claim under both categories could mean losing out on additional tax relief. Review the CRA guidelines for medical expenses to maximize your benefits.
By avoiding these common pitfalls and carefully reviewing your claim, you can ensure a smooth and successful HATC filing process.
Conclusion
The Home Accessibility Tax Credit (HATC) is a valuable resource for seniors and individuals with disabilities in Canada, making necessary home modifications more affordable. By understanding the eligibility criteria, qualifying renovations, and proper filing procedures, you can maximize your claim and ease the financial burden of improving your home’s accessibility.
Remember to keep accurate documentation, stay within the claim limits, and avoid common filing mistakes to ensure a smooth process.
Whether you’re enhancing safety or improving mobility, the HATC empowers you to create a more accessible living space. Take advantage of this tax credit and invest in a home that meets your needs today and in the future.
FAQs
Can I claim the Home Accessibility Tax Credit if I move during the year?
Yes, you can claim the HATC for multiple eligible dwellings if you move during the year. However, the combined total for all eligible expenses across these dwellings cannot exceed $20,000 in a tax year.
Can family members claim the tax credit on my behalf?
Yes, eligible family members, such as a spouse, common-law partner, or relatives (e.g., parent, child, grandchild), can claim the HATC on behalf of a qualifying individual. However, the total claim for the dwelling cannot exceed $10,000.
What happens if my renovation qualifies as both a medical and home accessibility expense?
You can claim the same expense under both the Medical Expense Tax Credit (METC) and the HATC, provided the expense meets the criteria for both credits.
Do I need to hire a professional contractor to claim the HATC?
No, you can do the work yourself. However, only expenses for materials, equipment rentals, and permits are eligible. The value of your own labour or tools cannot be claimed.
Can I claim expenses for a vacation or rental property?
No, the HATC only applies to renovations made to an eligible dwelling that is your primary residence or the primary residence of the qualifying individual.
How does the CRA verify my claim?
The CRA may request supporting documents, such as invoices, receipts, and proof of payment, to verify your claim. Make sure your documentation includes vendor details, descriptions of the work, and GST/HST registration numbers where applicable.
Can I split the claim with another qualifying individual?
Yes, if there are multiple qualifying individuals in a single eligible dwelling, the total claim can be split between them. However, the combined claim for the dwelling cannot exceed $10,000.
