In June 2025, the Canadian government introduced two significant programs designed to assist seniors and adults with disabilities.
These initiatives aim to offer financial relief for home renovations and provide ongoing support for people with disabilities.
- Multigenerational Home Renovation Tax Credit (MHRTC): A one-time credit of up to $7,500 for homeowners creating a self-contained secondary suite for a senior or an adult approved under the Disability Tax Credit (DTC).
- Canada Disability Benefit (CDB): A monthly benefit of up to $200, with a total of $2,400 per year for eligible adults aged 18–64.
This article breaks down the details of these programs, their eligibility requirements, application process, and offers practical tips to help you make the most of them.
Canada’s June 2025 Tax Programs: At a Glance
| Program | Target Group | Amount | How to Claim |
|---|---|---|---|
| MHRTC | Homeowners creating a secondary suite for a senior (65+) or an adult with DTC | Up to $7,500 (15% of up to $50,000 in expenses) | Claim on Schedule 12, line 45355 of your 2025 tax return |
| CDB | Working-age (18–64) Canadians approved for DTC | Up to $200 per month (Max $2,400 per year) | Apply June 20–December 31, 2025 via CRA My Account or Service Canada |
The Impact of These Programs
The Multigenerational Home Renovation Tax Credit helps families build accessible homes by providing financial support for creating secondary suites for seniors or people with disabilities.
The Canada Disability Benefit offers ongoing monthly assistance to help cover living expenses, making it easier for working-age Canadians with disabilities to manage their finances.
Both of these programs aim to reduce living costs, improve home accessibility, and provide financial stability. They are especially beneficial when combined with provincial tax credits and other programs that support home accessibility.
Why These Programs Are Important
Canada is moving toward a model of multigenerational living, where families live together to share resources and provide in-home care for seniors or people with disabilities. This model:
- Reduces family living expenses
- Offers in-home care for seniors and adults with disabilities
- Strengthens family bonds and community ties
To support this, the Canadian government launched these tax credits and benefits, offering financial relief for renovation projects and providing ongoing support for eligible adults.
Understanding the Multigenerational Home Renovation Tax Credit (MHRTC)
The MHRTC is a refundable tax credit designed to support homeowners who renovate their homes to create a secondary suite for a senior or an adult with Disability Tax Credit (DTC) status. This tax credit offers 15% of eligible renovation costs, up to a maximum of $7,500.
Eligibility Requirements
- Secondary Suite: The suite must have a private entrance, kitchen, bathroom, and bedroom. It must also comply with local building codes and zoning bylaws.
- Eligible Person: The person who will live in the suite must either be:
- A senior aged 65 or older, or
- An adult aged 18–64 with DTC status.
- Homeowner Requirements: The homeowner must:
- Own and occupy the home as their principal residence throughout 2025.
- Be a Canadian resident for the entire year.
- Renovation Costs: These must be incurred and paid in 2025, regardless of when the renovation work started.
How to Claim
To claim the MHRTC:
- Complete Schedule 12 of your 2025 federal tax return.
- Enter eligible expenses on line 45355.
- Retain documentation such as receipts, permits, and proof of DTC approval for at least six years.
Provincial and Territorial Programs
Many provinces offer additional or complementary credits, including:
- British Columbia: Provides a 10% credit for renovations for seniors and persons with disabilities.
- Quebec: Offers a tax credit for home adaptation and renovation projects.
- Ontario: Offers various programs for public transit and accessibility modifications.
What is the Canada Disability Benefit (CDB)?
The Canada Disability Benefit (CDB) offers monthly financial assistance of up to $200, or $2,400 per year, to eligible adults aged 18–64 who are approved for the Disability Tax Credit (DTC).
Application Process and Dates
- Application Window: From June 20–December 31, 2025.
- First Payments: Starting in July 2025 for applications approved by June 30.
- Retroactive Payments: Available for up to 24 months for those eligible, even if they are over 65.
Income Testing and Eligibility
- Single filers: The first $23,000 of income is exempt, and a reduction of $0.20 applies for every dollar above this threshold.
- Couples: The first $32,500 of combined income is exempt, with a similar reduction for higher earnings.
- Working Income Exemption: $10,000 for single individuals and $14,000 for couples.
How to Apply for the CDB
- File your 2024 tax return by April 30, 2025.
- Wait for the CRA eligibility letter with your application code.
- Starting June 20, log in to CRA My Account or visit Service Canada to submit your details.
Benefit Calculation Example
For example, if Dan, a single adult, earns $35,000 in 2024, the CDB payment will be:
- Subtract $10,000 working income exemption = $25,000.
- Subtract $23,000 basic exemption = $2,000.
- Multiply by 0.20 = $400 reduction.
- Annual benefit = $2,400 – $400 = $2,000, which is approximately $166.67/month.
Canada’s new tax credit and disability benefits programs are a great way to help families make their homes more accessible and provide ongoing financial support for people with disabilities.
Whether you’re renovating to accommodate a loved one or need monthly assistance, these initiatives offer much-needed relief and assistance.
FAQs
How do I apply for the Multigenerational Home Renovation Tax Credit?
To apply for the MHRTC, complete Schedule 12 of your 2025 federal tax return and enter your eligible renovation expenses.
Can I apply for the Canada Disability Benefit if I am over 65?
Yes, if you are approved for the Disability Tax Credit, you can apply for the Canada Disability Benefit even if you are over 65.
Are there any additional tax credits available for home renovations?
Yes, many provinces, including British Columbia and Ontario, offer additional credits for home accessibility renovations.