Home -> Filing Your Return -> Home Renovation and Home Accessibility Tax Credits - Federal Home Accessibility Tax Credit (HATC)
Federal Home Accessibility Tax Credit (HATC)
Income Tax Act s. 118.041
What is the Home Accessibility Tax Credit (HATC)?
Amount of the Home Accessibility Tax Credit
Medical Expense Tax Credit and the HATC
Tax Court Case - Patrie v. The Queen, 2019 TCC 276
Canada Revenue Agency (CRA) Resources
What is the Home Accessibility Tax Credit (HATC)?
The Home Accessibility Tax Credit is a non-refundable tax credit introduced in the Federal 2015 Budget. The credit is for qualifying expenses incurred in 2016 or later, for work performed or goods acquired in respect of a qualifying renovation of an eligible dwelling of a qualifying individual. The HATC can be claimed by a qualifying individual or an eligible individual.
Amount of the Home Accessibility Tax Credit
The HATC applies to the total qualifying expenses, up to a maximum of $20,000 per year for 2022 and later years ($10,000 for 2021 and earlier years). The credit is at the lowest personal tax rate of 15%, so the maximum tax reduction per year is $3,000 ($20,000 x 15%).
Medical Expense Tax Credit (METC) and the HATC
If a qualifying expense also qualifies for the medical expense tax credit, both the METC and the HATC can be claimed for the same expense.
Qualifying Individual
A qualifying individual is an individual:
 | who is 65 years or older before the end of the taxation year; or |
| who is eligible to claim the disability tax credit at any time in the taxation year. |
If there are two qualifying individuals in the same principal residence, the maximum is $10,000 related to that principal residence.
Eligible Individual
| includes a spouse, common-law partner, and certain supporting relatives of a qualifying individual | ||||||||
| Certain Supporting Relative is an individual that has claimed the
amount for an eligible dependant, caregiver
amount, or amount for an infirm dependant age 18 or older for the qualifying person,
or could have claimed such
an amount if:
|
Qualifying Expenditure
Expenses qualify if they are of an enduring nature and integral to the dwelling, when they are made in relation to a qualifying renovation or alteration to an eligible dwelling, including the land (generally, up to 1/2 hectare of land) that forms part of the eligible dwelling. Generally, if the item purchased or work performed will not become a permanent part of your dwelling, it is not eligible.
Expenses do not qualify if the goods or services are provided by a person related to you, unless that person is registered to collect goods and services tax/harmonized sales tax (GST/HST).
Qualifying Renovation
A qualifying renovation is one of an enduring nature and is integral to the eligible dwelling. The renovation must:
| allow the qualifying individual to gain access to, or to be mobile or function within, the eligible dwelling; or |
| reduce the risk of harm to the qualifying individual within the eligible dwelling or in gaining access to the dwelling. |
Eligible Dwelling
An eligible dwelling is:
| a housing unit located in Canada, which could be a share of the capital stock of a co-operative housing corporation acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the co-operative housing corporation. |
| the principal residence of the qualifying individual at any time in the tax year. |
Generally, a housing unit will be considered to be a qualifying individual's principal residence where it is ordinarily inhabited, or expected to be ordinarily inhabited within that tax year, by the qualifying individual and it is owned, either jointly or otherwise, by the qualifying individual or the qualifying individual's spouse or common-law partner.
Although a person can have only one principal residence at a time, when a an individual moves during the year, there can be two principal residences during that year. In such a situation, the HATC maximum of $10,000 applies to the total cost of qualifying expenses for both residences, NOT for each residence.
If the qualifying individual does not own a principal residence, a dwelling will be considered to be an eligible dwelling if it is the principal residence of an eligible individual in respect of the qualifying individual who ordinarily lives in that dwelling with the eligible individual.
If you earn business or rental income from part of an eligible dwelling, you can only claim the amount for qualifying expenses incurred for the personal-use areas of your dwelling.
Tax Court Case - Patrie v. The Queen, 2019 TCC 276
Patrie v. The Queen was heard in November 2019 and was a win for the taxpayer. The judge made it very clear that CRA can only use the applicable provisions of the Income Tax Act to determine eligibility for the tax credit.
TaxTips.ca Resources
Resources for Persons with Disabilities
Federal and Provincial Home Renovation Tax Credits
Canada Revenue Agency (CRA) Resources
Home Accessibility Tax Credit (HATC)
Revised: September 20, 2024