Owning a home in Canada isn’t cheap, but what if you could put some money back in your pocket? Whether you’re saving for your first home, recently bought, renovated, or sold a property, there are plenty of tax credits and deductions that can help you offset costs. The key is knowing what’s available—because every dollar saved is a dollar you can reinvest in your future.
For First-Time Home Buyers
Home Buyers’ Plan (HBP): Withdraw up to $60,000 tax-free from RRSP to buy or build a home. Extended grace period of three extra years for repayments (applies to withdrawals between 2022-2025).
First Home Savings Account (FHSA): Contribute up to $8,000 per year, with a lifetime limit of $40,000, tax-free. Contributions may be deductible on your tax return.
If You Bought a Home in 2024
Home Buyers’ Amount: Claim up to $10,000, providing a tax credit of up to $1,500.
Home Buyers’ Tax Credit for People with Disabilities: Available even if you’re not a first-time home buyer, subject to eligibility for the Disability Tax Credit (DTC).
If You Moved for Work
Moving Expense Deduction: If you moved 40 km closer to a new job, you can deduct moving costs like flights, movers, real estate fees, lease break costs, and temporary housing.
For Self-Employed & Remote Workers
Business-Use-of-Home Expenses: Self-employed individuals can claim home office expenses and car travel expenses (with records).
Work-From-Home Tax Credit: Non-self-employed individuals who worked remotely in 2024 could claim up to $500 for home office expenses.
For Home Renovations in 2024
Multigenerational Home Renovation Tax Credit (MHRTC): 15% tax credit on qualifying renovations (e.g., building a secondary unit for family), up to $7,500 (on $50,000 expenses).
Home Accessibility Tax Credit (HATC): Non-refundable credit on eligible home renovations for accessibility, with a $20,000 expense limit.
New GST/HST Housing Rebate: Rebates for GST/HST paid on newly built, substantially renovated, or self-constructed homes used as a primary residence.
If You Sold a Home in 2024
Principal Residence Exemption: Reduces or eliminates capital gains tax on the sale of your principal residence.
Residential Property Flipping Rule: If you sell a property owned for less than 12 months (without a life event exception), profits are taxed as business income, not capital gains.
For Rental Property Owners
Purpose-Built Rental Housing (PBRH) Rebate: Supports the construction of new rental properties (e.g., apartments, student housing, seniors' residences) with tax incentives.
Understanding these tax incentives can help you save thousands of dollars and make homeownership more affordable. If you're planning to buy, sell, or renovate, having a strategy in place can maximize your benefits. Need expert advice on navigating the real estate market? I’d love to help—let’s chat about your next steps!
In the meantime, check out the CRA Newsroom for more details and make the most of these incentives!
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2025/keys-unlocking-housing-related-tax-savings-filing-season.html
Tax incentives to help minimize housing costs in 2025
