Making your home safer and easier to live in is a big priority for many, especially for seniors and people with disabilities. But making those important changes can be expensive. The good news is that the Canadian government offers a helpful financial tool: the Home Accessibility Tax Credit (HATC). This guide explains what it is, who can use it, and how it can help you afford the renovations you need.
What is the Home Accessibility Tax Credit?
The Home Accessibility Tax Credit is a non-refundable income tax credit. It lets you claim a portion of the money you spend on eligible renovations to make your home safer and more accessible. In simple terms, it reduces the amount of income tax you have to pay.
The credit is worth 15% of your eligible expenses, up to a maximum expense claim of $20,000 per year. This means you could get a credit of up to $3,000 back on your taxes ($20,000 x 15%).
Who Qualifies for Home Accessibility Tax Credit?
The credit is designed to help two main groups of people, known as “qualifying individuals”:
- Seniors: Anyone who is 65 years of age or older by the end of the tax year.
- People with Disabilities: Anyone who is eligible for the Disability Tax Credit (DTC).
The credit can be claimed by the qualifying individual themselves. It can also be claimed by a supporting family member (like a spouse, child, or grandparent) who owns the home where the qualifying individual lives.
What Home Renovations Are Eligible?
The key rule is that the renovation must be a permanent change to your home that either:
- Improves access or movement within the home, or
- Reduces the risk of harm to the person living there.
Examples of Eligible Projects:
- Installing grab bars, walk-in tubs, or wheel-in showers in the bathroom.
- Building a wheelchair ramp at the entrance.
- Widening doorways for easier access.
- Lowering kitchen counters or cabinets.
- Installing non-slip flooring.
- Putting in a stairlift or a porch lift.
What Does NOT Qualify:
- Routine repairs or general maintenance (like painting a room).
- Buying household appliances (like a new refrigerator or stove).
- Security systems, gardening, or housekeeping services.
- The value of your own labor if you do the work yourself (though you can claim the cost of materials).
How to Claim the Home Accessibility Tax Credit
You claim this credit when you file your personal income tax return for the year the work was done. The specific line number is 31285 – Home accessibility expenses.
The Golden Rule: Keep Your Receipts!
You must keep all invoices and receipts. They should clearly show:
- The name and address of the contractor or store.
- A detailed description of the work done or items bought.
- The date and the full amount paid.
- Proof that the bill has been paid in full.
Real-Life Stories: How the HATC Helps
Here are a few examples of how the Home Accessibility Tax Credit credit works in practice:
Example 1: Staying Safe at Home
“Mary, a 72-year-old homeowner, wanted to stay in her two-story house safely. She installed a stair lift for $7,000. At tax time, she claimed the HATC and received a $1,050 tax credit (15% of the cost). This made her home safer and gave her a helpful break on her taxes.”
Example 2: Adapting a Home for Family
“Raj and his wife renovated their basement to make room for his father, who uses a wheelchair. They installed a roll-in shower and widened doorways for a total of $18,000. Because his father qualifies for the Disability Tax Credit, Raj was able to claim the HATC and received a $2,700 tax credit, making a big project more affordable for the family.”
Where to Get Official Information
For complete details and the most up-to-date rules, always refer to the official Canada Revenue Agency (CRA) website.
Official CRA Webpage: Home Accessibility Tax Credit (HATC)
CRA General Inquiries Phone: 1-800-959-8281
Remember: This information is a helpful guide. For advice specific to your tax situation, it’s always a good idea to speak with a qualified tax professional.
Making your home more accessible can provide greater independence, safety, and peace of mind. The Home Accessibility Tax Credit is one tool to help make those important changes more affordable.
