In June 2025, the Canadian government introduced two key federal programs to support families, seniors, and individuals with disabilities. These programs provide financial relief through a one-time tax credit of up to $7,500 for home renovations and a monthly disability benefit of up to $200.
Whether you’re planning a multigenerational living arrangement or need long-term financial support, this guide breaks down everything you need to know in a clear and practical way.
Overview
Here are the two main federal initiatives available as of June 2025:
- Multigenerational Home Renovation Tax Credit (MHRTC): A one-time tax credit worth up to $7,500 to help homeowners build or retrofit a secondary suite for a senior or an adult with a disability.
- Canada Disability Benefit (CDB): A monthly payment of up to $200 for working-age adults with a valid Disability Tax Credit (DTC) certificate.
These programs aim to promote home accessibility, encourage family-based care, and improve financial independence for Canadians living with disabilities.
Program Summary
| Program | Who It’s For | Amount | How to Claim |
|---|---|---|---|
| MHRTC | Homeowners creating a suite for a senior or DTC-approved adult | Up to $7,500 (15% of $50,000) | File on 2025 taxes using Schedule 12, line 45355 |
| CDB | Adults aged 18–64 with valid DTC | Up to $200 per month | Apply via CRA My Account between June 20 and Dec 31 |
Why These Programs Matter
Multigenerational living is becoming more popular in Canada. Sharing a home with aging parents or adult children with disabilities can reduce costs, strengthen family support, and provide care in a familiar environment. These federal programs make that easier by covering some renovation costs and offering regular monthly support.
MHRTC
The Multigenerational Home Renovation Tax Credit is a one-time refundable credit worth 15 percent of renovation expenses, up to $50,000. That equals a maximum refund of $7,500.
Eligibility Requirements
To qualify, the home must include a self-contained suite with a separate entrance, kitchen, bathroom, and sleeping area. It must be built for:
- A senior aged 65 or older
- An adult aged 18 to 64 approved for the Disability Tax Credit (DTC)
Other Requirements
- The homeowner must live in the home throughout 2025
- Renovation expenses must be incurred and paid in 2025
- The claim is limited to one per qualifying person, per lifetime
Required Documentation
- Receipts with contractor names, amounts, and payment dates
- Building permits and compliance certificates
- Photos of the renovation before, during, and after
- Proof of DTC eligibility for the qualifying person
How to Claim
Complete Schedule 12 when filing your 2025 tax return. Enter eligible expenses on line 45355. Keep all documentation for at least six years in case the CRA requests it later.
Provincial Programs
You may also be eligible for complementary provincial or territorial benefits:
- British Columbia: Home Renovation Tax Credit for Seniors and Persons with Disabilities (10% of up to $10,000, max credit $1,000)
- Quebec: Tax credit for home adaptations and renovations
- Ontario: Accessibility grants and the Seniors’ Public Transit Tax Credit
Each province has its own rules, so check your regional tax agency website to confirm eligibility and stacking policies.
Canada Disability Benefit
The Canada Disability Benefit (CDB) is a monthly, income-tested payment for working-age adults who are approved for the DTC.
Application Timeline
- Apply between June 20 and December 31, 2025
- First payments begin in July 2025 if approved before June 30
- Retroactive payments may go back to June 2025, even if the applicant turns 65 during the year
Who Can Apply
- Must be between 18 and 64 years old
- Must be a Canadian resident
- Must have filed a 2024 tax return
- Must be approved for the DTC
Income Testing
The benefit reduces as income rises:
- Single individuals: First $23,000 exempt
- Couples: First $32,500 exempt (combined)
- Reduction of 20 cents per dollar above the exemption
- Working income exclusion: First $10,000 (single) or $14,000 (couples) excluded
Example Calculation
Dan earns $35,000 and is approved for the DTC:
- Subtract $10,000 working income exemption = $25,000
- Subtract $23,000 income exemption = $2,000
- Multiply by 0.20 = $400 reduction
- Final benefit = $2,400 – $400 = $2,000 per year or $166.67 per month
How to Apply
- File your 2024 taxes by April 30, 2025
- CRA will send an application code
- Log in to CRA My Account or visit a Service Canada office starting June 20
- Enter the code, your SIN, and banking details
Step-by-Step Action Plan
- Download CRA Form T2201
- Have a medical professional complete Part B
- Submit the form through CRA My Account or by mail
Plan Your Renovation
- Hire a contractor or architect with experience in accessibility
- Collect at least three estimates
- Account for extra costs like permits and design fees
- Set aside a contingency budget of 10–15 percent
Begin Work in 2025
- Secure all necessary permits from your municipality
- Ensure compliance with building and accessibility codes
- Take photos before, during, and after the renovation
Track Your Spending
- Use a spreadsheet or app to record invoices, amounts, and dates
- Scan receipts and store them in a labeled folder
File Your Taxes
- Use Schedule 12 to claim MHRTC on line 45355
- Keep all documents in case the CRA audits your return
Monitor Payments
- Watch for your MHRTC refund in early 2026
- Expect monthly CDB payments to appear by July 2025
Financing Tips
- Create a clear renovation timeline and plan for delays
- Consider a home equity line of credit or special accessibility loans
- Consult a tax expert to maximize claims like the Home Accessibility Tax Credit (HATC), Canada Caregiver Credit, and medical expense deductions
FAQs
Who qualifies for the $7,500 MHRTC?
Homeowners renovating for seniors or DTC-approved adults.
How do I claim the MHRTC?
Use Schedule 12 on your 2025 tax return, line 45355.
When will CDB payments start?
First payments begin in July 2025 for early applicants.
How much can I get from the CDB?
Up to $200/month or $2,400/year, income-tested.
Can I combine federal and provincial credits?
Yes, many provinces offer additional accessibility tax credits.
