Multigenerational Home Renovation Tax Credit up to $7,000 (2026), refundable.
Building a secondary suite so a senior parent or family member with a disability can live with you? The federal MHRTC is worth 14% of up to $50,000 in eligible renovation expenses (2026; 14.5% for 2025), and because it is refundable, you receive it even if you owe no tax.
The rules are specific. A self-contained suite needs its own entrance, kitchen, bathroom, and sleeping area. Eligible expenses must be incurred within the qualifying renovation period and claimed on line 45355 by an eligible person: someone who lives in the home (the senior, their spouse, or the relative), or the relative who owns it.
The three-part test
To claim the MHRTC, your renovation must satisfy all three of these requirements. The CRA is specific, missing any one of them disqualifies the claim.
A qualifying individual lives in the home
This is the person the suite is being built for. They must be either 65 or older by the end of the tax year, OR aged 18 to 64 and eligible for the Disability Tax Credit. They must ordinarily live in the home, or intend to within 12 months of renovation completion.
A qualifying relation shares the home
The qualifying individual must be living with, or moving in with, a family member aged 18 or older. That relative can be a parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew. This is the person creating the multigenerational living arrangement.
The new unit is self-contained
The secondary suite must include a private entrance, a kitchen, a bathroom, and a sleeping area, each of these four features is required. It can be inside the home, attached to it, or a separate building on the same property.
What counts as a secondary suite
Basement apartment
Finished basement with separate entrance, kitchen, bathroom, and bedroom. Most common format in Ottawa.
In-law suite addition
Single-storey addition attached to the main home. Often on the ground floor for accessibility.
Garage conversion
Attached garage converted into a full living space. Requires zoning check with the City of Ottawa.
Second-floor suite
Over-garage or loft addition converted into a self-contained unit with private access.
Carriage houses and laneway homes on the same property can qualify. The CRA has confirmed they can qualify for the MHRTC when built as accessory dwelling units. However, these may affect your principal residence exemption, always confirm tax implications with an accountant before building a detached unit.
What you can claim
The CRA allows a broad list of hard costs directly attributable to creating the secondary suite.
- • Framing, drywall, insulation, flooring
- • Kitchen cabinets, counters, sink
- • Bathroom fixtures and plumbing
- • Electrical and HVAC work
- • Windows, doors, separate entrance
- • Building permits and inspection fees
- • Labour costs from licensed trades
- • Architectural or engineering plans
- • Furniture or household items
- • Household appliances
- • Routine maintenance or repairs
- • Your own labour
- • Tools used for the renovation
- • Financing or legal costs
- • Costs reimbursed by a grant or other program
- • Value of labour from unregistered family
You get the money even if you owe no tax.
Most federal renovation credits (including the HATC) are non-refundable, meaning they only reduce tax you already owe. The MHRTC is different. If you spent $50,000 on an eligible suite and your tax bill is zero, the CRA will still pay you the $7,000 credit (2026). This makes it especially valuable for retirees and lower-income households.
How families are using the MHRTC
Converting a basement for a parent moving in
A family in Barrhaven converts their unfinished basement into a self-contained suite for a 72-year-old mother. The renovation includes framing, drywall, new kitchen, bathroom, bedroom, private entrance, electrical, and plumbing. Total qualifying expenses: $50,000.
Ground-floor addition with accessibility features
A family in Kanata builds a single-storey in-law suite for a grandparent with mobility challenges. General construction cost: $45,000 (claimed under MHRTC). Accessibility features, zero-threshold shower, grab bars, comfort-height toilet, lever handles: $8,000 (claimed under HATC).
HATC portion assumes the claimant owns the home or is an eligible family member, and has enough federal tax to use it.
When and how to claim
Begin the renovation
The MHRTC applies to renovations under the program, available since 2023. Keep all receipts, contracts, and permits from day one.
Complete the renovation
You claim the credit in the tax year the renovation is completed, not the year it started. The qualifying individual must either be living in the suite or intend to move in within 12 months.
File on line 45355
Enter the claim on line 45355 of your T1 federal return. If more than one eligible person paid, the claim can be split, as long as the combined total stays within the $50,000 limit. Only one renovation can be claimed per qualifying person in their lifetime.
Keep records for six years
Keep supporting documents generally for six years from the end of the tax year. Still at Home provides a complete renovation file, invoices, permits, completion certificates, organized for tax claim purposes.
Frequently asked questions
What is the Multigenerational Home Renovation Tax Credit?+
Who counts as a qualifying individual?+
Who counts as a qualifying relation?+
What exactly is a self-contained secondary suite?+
Can I claim MHRTC and HATC on the same project?+
Can I claim MHRTC more than once?+
When do I claim the MHRTC?+
Administered by the Canada Revenue Agency. Full rules at canada.ca, Line 45355 (MHRTC).
A suite for a parent often includes accessibility features such as a walk-in shower or grab bars, and that portion can be claimed under the HATC instead. Still at Home plans accessible renovations in Ottawa, including accessible bathroom renovations, and a free Home Safety Assessment is a good first step.
A suite built right.
A credit claimed cleanly.
Creating a suite for a parent or family member? We design to code, build to qualify, and document for the claim. One team, start to finish.
Last verified: September 2026 · Tax figures are for the 2026 tax year · Always confirm with the program and your tax professional.
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