Home Accessibility Tax Credit: Who Qualifies & How to Claim
Making your home more accessible isn't just about convenience—it's about safety, independence, and peace of mind. The Home Accessibility Tax Credit (HATC) is here to help Canadians cover the costs of making those crucial home improvements. Whether you're looking into completing a tub to shower conversion or widening doorways, understanding how you can benefit from the HATC can significantly impact the financial and physical well-being of you or a loved one.
In this blog, we'll learn who qualifies for the HATC, what renovations and expenses are eligible, and how to claim this important credit on your tax return. Let’s get started!
Jump to:
- What is the Home Accessibility Tax Credit (HATC)?
- Who's Eligible for the Home Accessibility Tax Credit (HATC)?
- Is My Home Eligible?
- Qualifying Renovations and Expenses
- Ineligible Renovations and Expenses
- How to Claim the Home Accessibility Tax Credit (HATC)
- Home Accessibility Tax Credit (HATC) – Fast FAQs
What is the Home Accessibility Tax Credit (HATC)?
The Home Accessibility Tax Credit (HATC) is a non-refundable tax credit aimed at helping seniors or those with disabilities make necessary home modifications. The purpose is straightforward: to allow individuals to stay in their homes longer, safely and comfortably, as they age or as their mobility needs change.
This initiative recognizes the importance of ageing in place and living independently and the significant role that minor renovations can play in enhancing the quality of life for seniors and those with disabilities.
Who's Eligible for the Home Accessibility Tax Credit (HATC)?
Individuals Who Qualify
To qualify for the HATC, an individual must be 65 years of age by the end of the tax year or eligible for the disability tax credit at any time in the year. This ensures that the tax credit serves those who need it most—seniors and those with substantial impairments.
- Seniors: Individuals aged 65 and over by the end of the tax year.
- Persons with Disabilities: Those eligible for the Disability Tax Credit, no matter their age.
Who Can Submit the Claim
The tax credit can be claimed not only by the eligible individuals themselves but also by any family members who support them. This includes spouses or common-law partners who take on renovations for the comfort and safety of their aging or disabled loved ones.
- The homeowner undertaking the renovation.
- A family member of the eligible individual.
Is My Home Eligible?
To see if your home qualifies for the Home Accessibility Tax Credit, here are a few simple guidelines:
- Location: The home must be in Canada and include dwellings such as a house, apartment, condo, or mobile home.
- Ownership: It must be owned, either solely or jointly, by the person who qualifies for the tax credit or by someone eligible to claim the credit on their behalf.
- Residency: The qualifying person must live in the home, or plan to by the end of the year.
Other things to keep in mind:
- The surrounding land up to about 1.24 acres also counts as part of your home for this tax credit.
- You can only have one main qualifying home at a time, but if you move during the year, both homes could potentially qualify.
- The maximum total you can claim for renovations across all eligible homes in a single year is $20,000.
Learn more about individual and home eligibility.
Qualifying Renovations and Expenses
Eligible renovations are those that improve accessibility or help manage mobility challenges within the home.
Some examples:
- Installing non-slip flooring.
- Widening doorways for wheelchair access.
- Adding a walk-in bathtub or shower.
These modifications are considered qualifying renovations since they help promote safety, access, and mobility around the home.
If you decide to carry out the renovations yourself, eligible expenses include:
- Building materials
- Fixtures
- Equipment rentals
- Building plans
- Permits
But it’s important to know that the value of your tools and labour are not eligible.
If you decide to have a family member complete the renovations, they can only claim eligible expenses if they are registered for goods and services tax/harmonized sales tax (GST/HST).
Ineligible Renovations and Expenses
While it’s key to know what qualifies as a reno under the HATC, it's just as important to be aware of what the HATC does not cover. General maintenance tasks like painting or replacing windows for aesthetic reasons do not qualify.
While changes like these can make a home look and feel much nicer, the HATC's focus is strictly on modifications that directly address accessibility and mobility issues within the home.
Find out more about eligible and ineligible expenses.
How to Claim the Home Accessibility Tax Credit (HATC)
Filing Your Claim
Claiming the HATC is done when filing your annual tax return. You must include the total expenses incurred for eligible renovations in the specific lines dedicated to the HATC, which is capped at $20,000 per year. This translates into a maximum credit of $3,000 annually.
Note: Both the qualifying individual and the eligible individuals can split and share the tax credit. If they can't agree on how to split the amount, the CRA will decide for them.
Learn more about completing your tax return.
Supporting Documents Required
It is crucial to keep all receipts and documents detailing the work that was completed. These records should clearly show the type of work done, the cost, and the date of completion. They will serve as proof of the modifications should the Canada Revenue Agency request verification.
Here is more information on the required documents.
Home Accessibility Tax Credit (HATC) – Fast FAQs
What is a home accessibility tax credit?
The HATC is a tax credit that helps cover the costs of renovations to make homes safer and more accessible for seniors and individuals with disabilities.
Who qualifies for the Home Accessibility Tax Credit (HATC)?
Seniors over 65 or those eligible for the disability tax credit.
What home improvements are tax deductible in Canada?
Improvements that enhance accessibility and safety for seniors over 65 and those living with disabilities, such as completing tub to shower conversions, installing wheelchair ramps, handrails, and widening doorways, are all deductible under the HATC.
Who can claim home accessibility expenses?
Eligible individuals or their supporting family members can claim eligible expenses under the Home Accessibility Tax Credit (HATC).
How do I claim the Home Accessibility Tax Credit (HATC)?
You can claim the Home Accessibility Tax Credit (HATC) through your annual tax return as long as you have the right supporting documentation.
Are Bathway’s products and services eligible for the Home Accessibility Tax Credit (HATC)?
Yes! As long as you or your family member meet the eligibility criteria, you can claim Bathway’s accessible bathtub products and service costs under the HATC.
Contact us to learn more about converting your bathtub to a shower!
Ensure the safety and independence of you or your loved ones with a Bathway tub to shower conversion!
Making your home a safer and more comfortable place for aging or for managing a disability is not just a practical decision but now also a more affordable one with the HATC. If you or a loved one is considering renovations like those offered by Bathway, such as converting your bathtub into a walk-in shower, take advantage of this tax credit. Not only will it improve quality of life, but it will also provide financial relief, making it a win-win situation.
Remember, every small change helps in making a home more accessible and welcoming. Consider assessing your needs and taking the steps necessary to create a space that supports independence and mobility for years to come.
