Home/Grants/MHRTC
Federal refundable credit

Multigenerational Home Renovation Tax Creditup to $7,500 refunded.

Building a secondary suite so a senior parent or family member with a disability can live with you? The federal MHRTC gives you 15% of up to $50,000 in eligible renovation expenses back — 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 of the tax return of someone who ordinarily inhabits the home.

Plan Your Secondary SuiteEstimate Total Savings
$7,500
Max credit (refundable)
$50,000
Max eligible expenses
15%
Credit rate
Line 45355
Federal return
Eligibility

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.

01

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.

02

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.

03

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 must be capable of functioning as an independent dwelling while remaining within or attached to the main home.

Common formats

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.

Laneway & carriage houses

The CRA has confirmed that carriage houses and laneway homes 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.

Eligible expenses

What you can claim

The CRA allows a broad list of hard costs directly attributable to creating the secondary suite.

Eligible ✓
  • • Framing, drywall, insulation, flooring
  • • Kitchen cabinets, counters, sink, appliances (if integral)
  • • 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
Not eligible ✗
  • • Furniture or household items
  • • Standalone appliances (microwave, portable AC)
  • • Routine maintenance or repairs
  • • Your own labour
  • • Tools used for the renovation
  • • Financing or legal costs
  • • Renovations done before January 1, 2023
  • • Value of labour from unregistered family
Why refundable matters

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 send you a $7,500 refund. This makes it especially valuable for retirees and lower-income households.

Real examples

How families are using the MHRTC

Scenario 1

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.

Refundable MHRTC$7,500
Scenario 2

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).

MHRTC (15% × $45,000)$6,750
HATC (15% × $8,000)$1,200
Combined total$7,950
Timing & claim

When and how to claim

01

Begin the renovation

The MHRTC applies to renovations that begin on or after January 1, 2023. Keep all receipts, contracts, and permits from day one.

02

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.

03

File on line 45355

Enter the claim on line 45355 of your T1 federal return. Only one person can claim per qualifying individual, so coordinate with your family before filing.

04

Keep records for six years

The CRA can request supporting documents for up to six years. 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?+
The MHRTC is a refundable federal tax credit introduced in 2023. It covers 15% of up to $50,000 in renovation expenses — up to $7,500 back — when you create a self-contained secondary suite for a senior or family member eligible for the Disability Tax Credit to live with a qualifying relative. Because it is refundable, you receive the full amount even if you owe no tax.
Who counts as a qualifying individual?+
Either a person who is 65 or older by the end of the tax year, or a person aged 18 to 64 who is eligible for the Disability Tax Credit. The senior or disabled adult must either already live in the home or intend to move into the new secondary suite within 12 months of the renovation being completed.
Who counts as a qualifying relation?+
A relative of the qualifying individual who is 18 or older: parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew. The qualifying relation must be the person living with the senior in the renovated home.
What exactly is a self-contained secondary suite?+
The CRA requires a separate entrance, kitchen, bathroom, and sleeping area. It must be capable of functioning as an independent dwelling unit even though it is within or attached to the main home. Basement apartments, in-law suites, garage conversions, and second-floor additions can all qualify, provided each of those four requirements is met.
Can I claim MHRTC and HATC on the same project?+
Yes — the CRA explicitly permits pairing MHRTC with the HATC and other programs, as long as expenses are clearly separated. The accessibility-related portion (grab bars, walk-in shower, zero-threshold entry) can be claimed under the HATC, while the broader suite construction costs (framing, drywall, new kitchen) fall under the MHRTC. Still at Home categorizes expenses at invoice level so nothing is double-counted and nothing eligible is missed.
Can I claim MHRTC more than once?+
Only one MHRTC claim can be made per qualifying individual per lifetime. However, if you are building secondary suites for two separate qualifying individuals — for example, both your mother and your aunt — you can claim the full $7,500 for each. You cannot combine expenses to exceed $50,000 for a single renovation.
When do I claim the MHRTC?+
You claim it on your tax return for the year the renovation is completed, on line 45355. The person making the claim must either be the qualifying individual themselves, their spouse or common-law partner, or the qualifying relation who owns the home.
Official source

Administered by the Canada Revenue Agency. Full rules at canada.ca – Line 45355 (MHRTC).

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.

Book a Free AssessmentCall 613.794.2040

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