The federal Multigenerational Home Renovation Tax Credit helps create a secondary unit so a person 65 or older, or an adult eligible for the disability tax credit, can live with a relative. It applies to expenses up to $50,000, at a 14% rate from 2026, for a maximum credit of about $7,000.
Main conditions
- The new unit must be a self-contained secondary unit with a private entrance, kitchen, bathroom and bedroom
- It must let the eligible person live with an eligible relative
- Work by qualified contractors, with permits where required
- Claimed for the year the renovation period ends
Example projects
- Basement apartment conversion
- Home addition or extra storey
- Garage converted to living space
Expenses already claimed as medical expenses or home accessibility can’t be claimed twice. Official information: multigenerational home renovation tax credit on Canada.ca.
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General, non-tax information checked in October 2026. Consult the Canada Revenue Agency or a professional.