Canada is stepping up in 2025 with two powerful tax support programs designed to make homes more inclusive and finances more manageable for families caring for seniors or adults with disabilities.
With a one-time $7,500 refund on home renovations and a monthly $200 Canada Disability Benefit, this is a game-changer for Canadians building multigenerational households.
Let’s break down exactly how these programs work, who qualifies, and what steps you need to take to claim every dollar you’re entitled to.
Table of Contents
Overview
The government’s June 2025 rollout includes:
- MHRTC: A $7,500 refundable tax credit for homeowners building a self-contained suite for a senior or disabled adult.
- CDB: Up to $200 per month for Canadians aged 18–64 approved for the Disability Tax Credit (DTC).
Whether you’re planning a suite for your parents or claiming support for yourself or a loved one, these programs offer real financial relief.
MHRTC
The Multigenerational Home Renovation Tax Credit (MHRTC) lets you claim 15% of renovation expenses—up to $50,000—when creating a secondary suite. That adds up to a maximum refund of $7,500 when you file your 2025 taxes.
To qualify:
- The suite must include a private kitchen, bathroom, and entrance.
- You must live in the home and be a Canadian resident for all of 2025.
- The person moving in must be 65+ or approved for the DTC.
- Renovation costs must be paid in 2025.
- One claim per eligible person—lifetime limit.
Claim it by: Filing Schedule 12 with your 2025 tax return (line 45355).
CDB
The Canada Disability Benefit (CDB) is new monthly income support for adults aged 18–64 with DTC status.
- Max benefit: $200/month or $2,400/year.
- Income-tested: Lower-income Canadians receive the full amount.
- Application window: June 20–Dec 31, 2025.
- Payments start: July 2025 for early applicants.
To apply, file your 2024 taxes first. Then use CRA My Account or go to Service Canada with your unique code.
Example: Dan earns $35,000. After exemptions, his CDB is reduced to $2,000 annually—or around $167/month.
Steps
If the person in your household isn’t already approved for the DTC, download Form T2201, have it filled by a healthcare provider, and submit it to CRA.
Plan the Renovation
- Get at least 3 quotes.
- Work with contractors who know accessibility needs.
- Budget extra for permits and unexpected costs (aim for 10–15%).
Apply for Permits
Submit building permits with your local city or town. Make sure all designs meet local building codes and accessibility rules.
Track Expenses
Use a spreadsheet or app to track all invoices and receipts. Keep photo evidence of each stage of your project.
File Your Taxes
In spring 2026, file your 2025 return including Schedule 12 (MHRTC). Submit CDB separately once your CRA code arrives.
Monitor and Update
Check your CRA account regularly for payment updates. If your income or living situation changes, report it to avoid clawbacks.
Program Summary
| Program | Who It’s For | Max Amount | Claim/Apply By |
|---|---|---|---|
| MHRTC | Homeowners with senior or DTC-qualified adult | $7,500 (15% of $50K) | File with 2025 tax return |
| CDB | DTC-approved adults (18–64) | $200/month ($2,400/year) | Apply June 20–Dec 31, 2025 |
Provincial
Don’t forget to stack provincial programs:
- BC: $1,000 renovation credit.
- Ontario: Accessibility grants + public transit credit.
- Quebec: Tax help for accessibility upgrades.
These can stack with the MHRTC to reduce your renovation costs even more.
Budgeting
- Build a timeline: Account for delays.
- Set aside 10–15% extra funds.
- Use HELOCs or loans for upfront costs if needed.
- Talk to a tax advisor: Combine with other credits like the HATC or Medical Expense deduction.
Storytime
The Patels, from Ottawa, turned their garage into a suite for their mom. It cost $48,000. Their MHRTC refund was $7,200. Their son also received CDB payments of $200/month. By year-end, they received over $8,700 in government support—making their project far more affordable.
These programs aren’t just about money. They’re about making homes safer, families stronger, and communities more inclusive. If you qualify, don’t wait—plan now, claim later, and get the support you deserve.
FAQs
Who can claim the $7,500 MHRTC?
Homeowners with a senior 65+ or DTC-approved adult building a suite.
What counts as a secondary suite?
A private unit with a separate entrance, kitchen, bath, and bedroom.
When will CDB payments start?
July 2025 for those who apply by June 30, 2025.
How do I apply for CDB?
Via CRA My Account or Service Canada using your CRA code.
Can I combine MHRTC with other credits?
Yes, provincial programs and HATC can stack with MHRTC.
