In September 2025 the Government of Canada will roll out the Canada Home Renovation Credit, offering up to $7,500 in tax relief for homeowners undertaking qualifying home improvements. With rising living costs and housing challenges, this initiative is designed to make essential renovations more affordable, whether for energy efficiency, accessibility, or structural upgrades.
This guide explains the eligibility rules, application process, covered renovations, and key deadlines so homeowners can take full advantage of the benefit.
What is the $7,500 Home Renovation Credit?
The Canada Home Renovation Credit is a tax incentive program that reduces the financial burden of home upgrades. By offsetting renovation expenses, the credit ensures that Canadian homeowners can maintain safe, efficient, and livable homes.
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The maximum credit of $7,500 applies to projects that exceed $5,000 in eligible renovation costs. The program is not limited to cosmetic changes but focuses on improvements that add value, enhance efficiency, or improve accessibility.
Renovations That Qualify for the Credit
The government has confirmed that a broad range of renovations will be covered under the 2025 credit. Eligible projects include:
- Energy-Efficient Upgrades: Replacing windows, upgrading insulation, installing solar panels, or modernizing heating/cooling systems.
- Kitchen and Bathroom Remodels: Significant renovations to improve functionality, safety, or usability.
- Accessibility Improvements: Adding wheelchair ramps, modifying bathrooms, or installing stairlifts for seniors or persons with disabilities.
- Basement Finishing: Converting unfinished basements into usable living areas.
- Roof and Structural Repairs: Replacing damaged roofs, reinforcing foundations, or carrying out major safety-related repairs.
Minor cosmetic projects such as painting or replacing light fixtures generally do not qualify unless they are part of a larger structural upgrade.
Who is Eligible for the Canada Home Renovation Credit?
To ensure fairness and proper distribution, eligibility rules are clearly defined for the 2025 program.
- Canadian Residency: Available to citizens, permanent residents, and legal residents who own and live in their primary residence.
- Homeownership: The applicant must be the homeowner living in the property. Vacation homes, rentals, and commercial properties are excluded.
- Renovation Costs: The project must exceed $5,000 in expenses, with a maximum tax credit of $7,500.
- Eligible Renovation Types: Only qualifying upgrades that improve value, safety, or efficiency are accepted.
- Licensed Contractors: Work must be performed by certified professionals. Invoices and receipts are required as proof.
- Claim Deadline: All claims must be filed by December 31, 2025.
How to Claim the $7,500 Credit Online
The Canada Revenue Agency (CRA) has streamlined the application process through its online portal. Homeowners can submit claims directly via their CRA My Account.
Step-by-Step Process
- Gather Documents – Collect invoices, receipts, and proof of licensed contractor work.
- Access CRA Portal – Log in to your CRA My Account. If you don’t have one, register online.
- Select the Credit – Go to the “Claim Tax Credits” section and choose the Home Renovation Credit.
- Input Costs – Enter eligible expenses, ensuring they total more than $5,000.
- Submit Claim – Double-check details and submit through the portal.
- Confirmation – CRA will confirm approval. Approved claims will reduce tax liability or result in refunds.
Important Dates for Homeowners
To make sure you don’t miss the benefit, mark these key dates:
| Action | Deadline |
|---|---|
| Renovation Start | Anytime in 2025 |
| Claim Submission | December 31, 2025 |
| 2025 Tax Filing Deadline | April 30, 2026 |
Delays beyond these deadlines may disqualify your claim.
Why the Renovation Credit Matters in 2025
With average renovation costs climbing, many Canadian families struggle to maintain or improve their homes. The $7,500 credit:
- Eases financial pressure on middle-class families.
- Encourages energy-efficient upgrades, helping Canada meet climate goals.
- Supports accessibility improvements for seniors and persons with disabilities.
- Stimulates the construction and trades sector, creating jobs and economic activity.
FAQs – $7,500 Canada Home Renovation Credit
Q1: Can I claim the credit if I do the renovations myself (DIY)?
No. Only work completed by licensed contractors is eligible. DIY renovations are excluded.
Q2: Is the credit available for secondary homes or rental properties?
No. It applies only to your primary residence where you live full-time.
Q3: What happens if my renovation costs are less than $5,000?
You will not qualify for the credit, as the minimum expense threshold is $5,000.
Q4: How will I receive the $7,500 benefit?
It will be applied as a tax credit on your CRA return, reducing your taxes owed or increasing your refund.
Q5: Do accessibility-related renovations have special rules?
Yes. Modifications such as wheelchair ramps, stairlifts, or widened doorways are eligible expenses, provided they are completed by licensed contractors.