Home Accessibility Tax Credit for Canadians

For the first time in recorded Canadian history, citizens over the age of 65 outnumber children under the age of 15. The baby boomers are retiring at record rates and are thinking about home renovations for aging in place. The Canadian government has begun to put more thought into the long-term impact of an aging population on the national and provincial budgets.

They’ve come to realize two things:

• Canadians want to live in their own homes for as long as possible
• Helping Canadians age-in-place is not only better for Canadians, but it can also be more affordable when compared to funding long-term care facilities.

Starting in 2016 tax year, they introduced the Home Accessibility Tax Credit (HATC)

• What is the Home Accessibility Tax Credit (HATC)

  To help reduce the tax burden of funding expensive long-term facilities the HATC provides Canadians tax relief on age-proofing their home? Here’s what you need to know:

  • The HATC is a non-refundable tax credit worth up to $1,500.
  • Qualified individuals can receive 15% in tax relief on up to $10,000 in eligible renovations.
  • The tax credit took effect in 2016 and is an annual tax deduction, meaning if you require more accessible renovations in the following tax season then you can again deduct eligible renovation expenses from your federal taxes.
  • Submit your eligible expenses on your tax return
• Who qualifies for the HATC?

  An individual 65 years of age or older at the end of the tax year
  OR
  An individual who is eligible for the disability tax credit for the year
  OR
  If you support a qualified individual listed above, you may also qualify for tax relief.

  Examples:

  • Spouse or common-law of a qualified individual
  • Relative caretaker of a qualified individual

  For complete details on eligibility visit CRA

• Is your home eligible?

  Your primary residence, if owned by you or your partner, is eligible. If you have more than one eligible home, the maximum claim is still only $10,000 total (e.g., $4,000 for home A and $6,000 for home B).

  Other possible eligible dwellings are the homes of caretakers who support qualified individuals. If a caretaker owns their home and the qualified individual ordinarily lives there, it likely qualifies.

• What renovations qualify?

  Generally, if the renovation is permanent and either helps you access your home or reduces your chance of injury, then it should qualify.

  Examples of renovations that should qualify:

  • Adding Grab bars and safety rails
  • Replacing a bathtub with a Roll-in shower stall  or
  • An accessible shower pan
  • Walk-in bathtub
  • Wheelchair lifts
  • Installing non slip flooring
  • Switching to lever style handles or faucets
  • Widening your doorways
  • Labour costs from professionals
  • Permits for construction, and building plans
  • Building materials and fixtures
  • Equipment rentals and more…

  Renovations that probably DO NOT qualify:

  • The cost of maintenance or repairs
  • Labour costs from family members or yourself
  • Furniture or household appliances
  • Electronic home-entertainment devices
  • Housekeeping, gardening, or security costs, and more.
• How to claim the tax credit

  Always consult the CRA website for the most up to date information on tax credits and how to claim them properly.

  Make sure you keep invoices, receipts, and agreements and other supporting documents that clearly identify the type and quantity of goods bought or services provided, in order to fill out the correct schedule, and have on hand if/when the CRA requests supporting documents.

• You may be able to claim this expense a few times

  Some of your renovation expenses may also qualify for the medical expense tax credit, or other provincial accessible home tax credits, which means extra tax relief for eligible home renovations.

  See below links for information on provincial level tax credits you could also get for similar expenses:

  • British Columbia Home Renovation Tax Credit for Seniors and Persons with Disabilities
  • New Brunswick Seniors Home Renovation Tax Credit
  • Ontario (up to 2016 only) Healthy Homes Renovation Tax Credit

  Tax relief is always welcome, especially when it comes to age-proofing your home so you can age-in-place. We hope you enjoyed reading and we wish you luck in your accessible renovations.

  NOTE: For products purchased from Accessibility Professionals that might be eligible for 2016 or 2017 tax year, contact us if you need us to resend your receipt. Remember to keep your receipts for 2018 tax year.

The information provided on this website is for informational purposes only and is not intended to provide specific financial, investment, tax, legal, accounting or other advice to you, and should not be acted or relied upon in that regard without seeking the advice of a relevant professional.

Accessibility Professionals Inc. does not guarantee the quality, accuracy, completeness or timeliness of the information provided. Accessibility Professionals Inc. assumes no obligation to update the information. Accessibility Professionals disclaims all warranties, representations and conditions regarding use of the information provided.