As Canadians plan for aging in place or supporting family members with disabilities, one important tool often overlooked is the Home Accessibility Tax Credit (HATC). This federal non-refundable tax credit can help make your home safer and more accessible — while saving you money at tax time.
Whether you’re a senior looking to install a walk-in tub or a caregiver modifying a loved one’s home with a wheelchair ramp, understanding the HATC can unlock thousands of dollars in savings. Let’s explore what this credit is, who qualifies, what expenses are covered, and how to claim it.
What is the Home Accessibility Tax Credit (HATC)?
The Home Accessibility Tax Credit is a non-refundable tax credit provided by the Canada Revenue Agency (CRA) to help reduce the cost of home renovations that improve accessibility or reduce the risk of injury for individuals who are:
- 65 years of age or older, or
- eligible for the disability tax credit (DTC).
As of 2022, the maximum eligible expense amount is $20,000 per year, offering a potential tax credit of up to $3,000 (15% of $20,000).
This credit is especially valuable for families preparing for long-term aging at home, reducing mobility barriers, or modifying homes after a health diagnosis.
Who Qualifies for the HATC?
HATC Eligibility Criteria
To claim the HATC, you must be one of the following:
- A qualifying individual:
- A person 65 years of age or older at the end of the tax year
- A person eligible for the Disability Tax Credit (DTC)
- An eligible individual supporting a qualifying individual:
- A spouse or common-law partner
- A parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew
- Any caregiver who is entitled to claim certain credits (such as the Canada caregiver amount)
Note: The home must be the principal residence of the qualifying individual at some point during the tax year.
What Renovation Expenses Qualify for HATC?
The expenses must be for permanent improvements that allow the qualifying person to:
- Gain access to their home
- Move within the home more easily
- Reduce the risk of injury within or around the home
Examples of Eligible Renovation Expenses:
- Wheelchair ramps and stair lifts
- Walk-in bathtubs or roll-in showers
- Widened doorways or hallways
- Non-slip flooring
- Grab bars and handrails
- Lowered cabinets and counters
- Motion-activated lighting
- Relocating laundry facilities to the main floor
Ineligible Expenses:
- General maintenance (e.g., roofing, windows)
- Home security systems
- Gardening or landscaping
- House cleaning services
- Costs reimbursed by insurance or other programs
💡 Tip: Keep all receipts and invoices, especially those that clearly describe the nature and purpose of the renovation.
How to Claim the Home Accessibility Tax Credit
Step-by-Step Guide for Tax Time
- Complete your renovation by December 31 of the tax year.
- Gather all documentation: receipts, contractor invoices, permits, and before/after photos if possible.
- Ensure expenses are eligible under the HATC guidelines.
- Fill out Schedule 12 (Home Accessibility Expenses) with your tax return (T1).
- Transfer the amount to line 31285 on your federal return.
- Retain documents for at least six years in case the CRA requests proof.
📄 You can claim the HATC even if the renovation is shared across multiple eligible individuals, but the total amount cannot exceed $20,000 per dwelling per year.
Real-Life Examples
Example 1: Aging in Place
Mary, a 72-year-old homeowner in Mississauga, installed a stair lift to safely access her second floor. She spent $7,000. At tax time, she claimed the HATC and received a $1,050 tax credit (15% of $7,000).
Example 2: Supporting a Parent with a Disability
Raj and his wife renovated their basement to accommodate his wheelchair-bound father. They installed a roll-in shower and widened the entrance. The total cost was $18,000. Since his father qualifies for the DTC and lives in the same home, Raj was able to claim $2,700 in tax credits under HATC.
Frequently Asked Questions (FAQs)
1. Can I combine HATC with other renovation credits?
Yes! You may be able to combine HATC with the medical expenses tax credit or provincial home renovation programs, provided the expenses qualify under both.
2. Can renters claim the HATC?
Yes, as long as you have permission from your landlord and you meet the other eligibility criteria.
3. Can multiple family members share the credit?
Yes, but the total amount claimed for a dwelling can’t exceed $20,000 in eligible expenses per year.
4. Do I need a doctor’s note?
If you’re claiming based on a disability, ensure the person is already approved for the Disability Tax Credit. You typically don’t need a separate note, but CRA may ask for proof during a review.
5. What if I make the renovations in January?
You’ll claim them on the tax return for that calendar year. For example, a renovation in January 2025 would be claimed on your 2025 tax return, filed in 2026.
Final Thoughts: Don’t Miss Out on HATC
The Home Accessibility Tax Credit Canada is a practical and impactful way to make your home safer and more accessible — while also offering a substantial tax break. Whether you’re a senior planning to age in place or a caregiver renovating for a loved one, this credit can help ease financial strain.
✅ Take action now:
- Talk to a licensed contractor who understands accessibility
- Consult a tax professional to ensure you’re maximizing your return
- Keep organized records to make tax season stress-free
Official Resources
- Canada Revenue Agency: Home Accessibility Tax Credit (HATC)
- CRA – Disability Tax Credit (DTC)