Multigenerational Home Renovation Tax Credit (2026): Building a Suite for Mom or Dad

The Multigenerational Home Renovation Tax Credit (MHRTC) is a refundable federal credit that pays back 14.5% of up to $50,000 spent building a self-contained suite, so up to $7,250, when a parent or relative who is 65 or older (or an adult aged 18 to 64 eligible for the Disability Tax Credit) moves in with family. That is the 2025 amount, according to canada.ca, and it is claimed on line 45355 with Schedule 12.

Building a suite for Mom or Dad is one of the warmest ways to keep a family close, and one of the biggest projects you'll take on. This guide covers who qualifies, what the suite needs to count, which costs you can claim, and how to file without missing the rules that trip people up.

Do this next:

• Estimate your credit, and the accessibility credit on top, with our free Home Renovation Tax Credit Calculator.
• Compare a suite with the alternatives: our Can Mom Afford to Stay at Home? tool estimates the yearly cost of care and a benefits-first plan to fund it.
• Talk to an accessibility contractor early, so wider doors, a curbless shower and grab bars are designed in rather than added later.
• Check what else your parent qualifies for with our free Benefits Finder.

Who qualifies for the Multigenerational Home Renovation Tax Credit?

Three people matter: the person moving in, the relative they live with, and whoever claims. According to the CRA:

The home must be owned, jointly or not, by the qualifying individual or a qualifying relation during the renovation year. So an adult child building a suite in their own house for a parent fits, and so does a parent adding a suite for a grown child with a disability.

Our take: Have the honest conversation before the design one. A suite works when your parent wants it too, and when everyone agrees on the everyday things: meals, privacy, help with appointments. Our Care Conversation Guide is a gentle way to start.

What does the suite need to qualify?

The renovation has to create a secondary unit, not just a bedroom. The CRA says the unit must:

• Be a self-contained housing unit with a private entrance, kitchen, bathroom and sleeping area.
• Be newly built or created from existing living space, such as a basement or garage conversion or an addition.
• Meet local requirements, permits, codes and by-laws.

It doesn't have to be attached. A garden suite or laneway home on the same land as the main house can qualify. Check your city's rules for secondary suites before you design anything, since the permit is part of what makes the claim valid.

The 12-month rule: both the qualifying individual and the qualifying relation must live in the home (or be reasonably expected to) within 12 months after the renovation ends.

How much is the Multigenerational Home Renovation Tax Credit worth?

Because the credit rate follows the lowest federal tax rate, which is 14% for 2026, the 2026 credit is expected to be 14% (up to about $7,000). The CRA hasn't published the 2026 figure yet, so confirm it on the official page before you file.

If more than one family member pays, you can split the claim, but the total across everyone can't go over the maximum. Most suites cost more than $50,000, so the cap is usually what you'll claim.

What expenses can you claim?

The CRA counts the costs of creating the unit, including:

• Work by professionals such as electricians, plumbers, carpenters and architects.
• Building materials, fixtures and building plans.
• Permits and equipment rentals for the project.

It does not count:

• Routine repairs and maintenance, household appliances and home electronics.
• Housekeeping, security monitoring, gardening and outdoor maintenance.
• Financing costs, such as interest on a loan or line of credit.
• Work by a relative or anyone not at arm's length, unless they're registered for GST/HST.
• Costs you were reimbursed for, or that have no receipt.

Accessibility features built into the suite, like a curbless shower, grab bars and wider doorways, are part of the project cost. An experienced accessibility contractor can design them in from the start, which costs far less than adding them later.

Can you claim the MHRTC and the Home Accessibility Tax Credit together?

Not for the same expense. The CRA excludes any expense already claimed under the medical expense tax credit or the [Home Accessibility Tax Credit](/resources/home-accessibility-grants). But one project can use more than one credit if you split the costs:

Our take: put the suite under the MHRTC first, because it's refundable and the cap is bigger, then use the HATC for separate accessibility work the same year or the next. A tax professional is worth it for a project this size.

How do you claim the Multigenerational Home Renovation Tax Credit?

1. Finish the renovation and make sure your parent (or relative) and the qualifying relation move in within 12 months.
2. Claim in the year the renovation ends, even if the work took more than one year.
3. Complete Schedule 12, listing the eligible expenses, then enter the credit on line 45355 of your return.
4. If family members share the cost, agree on how to split it so the total stays within $50,000.
5. Keep your records: invoices showing the contractor's name, business address and GST/HST number, a description of the work, dates, amounts and proof of payment.

There's no separate application. The CRA may ask for the receipts and your permit, so keep them together from day one.

What does a premium in-law suite include?

Most suites cost well over the $50,000 the credit counts, and the money is best spent on the features that let your parent stay put as needs grow:

• Step-free everything: a level entry, a curbless shower and doorways wide enough for a walker or wheelchair.
• Room for help later: space for a caregiver to assist in the bathroom, and a spot for a hospital-style bed if it's ever needed.
• Quiet and privacy: soundproofing, a separate thermostat and a private outdoor space, so two households can live close without living on top of each other.
• Smart safety: good lighting, a video doorbell and a monitored alert system your parent will actually wear.

A garden suite on the same lot gives the most independence. An addition or basement conversion is often simpler to permit and keeps everyone under one roof.

Our take: Design for your parent at 90, not at 75. Pay for an occupational therapist to review the plans before construction; it's a small cost next to the build, and it's much cheaper to get the bathroom right on paper than to tear it out later.

Is building a suite the right move for your family?

It can be wonderful. A parent keeps their independence and privacy, help is a few steps away, and the cost often compares well with years of retirement home fees. The credit takes a real bite out of the bill.

It works best when your parent is still fairly independent and you're ready for the day-to-day role. If they need help several times a day, plan for home care visits in the suite, or compare it honestly with a move. Our aging in place guide and home care vs a retirement home can help you weigh it, and you don't have to decide alone.