9 ways homeowners & buyers can save money or get a bigger refund on their 2024 taxes
There are thousands of dollars in credits up for grabs! 🏠💸
These tax tips can get homeowners and hopeful buyers thousands of dollars back on their tax return.
Attention homeowners and buyers! As tax season looms, the Canada Revenue Agency (CRA) is reminding Canadians of a few key tax credits and programs that could save you some serious cash this year.
Whether you're a homeowner, a first-time buyer or even just starting to save for a down payment, there are plenty of housing-related benefits and credits that could put money back in your pocket. From deductions for renovations to savings plans for first homes, these tips can help you maximize your refund and ease housing costs.
If you bought, sold, or upgraded a home in 2024 — or even if you're still saving for a down payment in 2025 — these programs can help ease your housing costs and maximize your savings. Filing your taxes is the first step to unlocking these credits, so it's worth knowing what you might qualify for.
Here's a breakdown of all the benefits and credits for reducing housing-related expenses this tax season and beyond.
Home Buyer's Plan
If you're saving for your first home, the Home Buyer's Plan (HBP) lets you borrow from your own RRSP to buy or build it. You won't have to pay taxes on this withdrawal as long as you pay it back within a 15-year period.
In April 2024, the government raised the HBP limit from $35,000 to $60,000, and if you're buying with a partner, you can both take advantage of the program. Plus you'll also get extra time to start repaying withdrawals made from 2022 to 2025 — repayments start five years after the withdrawal year.
The RRSP contribution deadline for the 2024 tax year is March 3, so you still have some time to contribute and reduce your taxable income from last year if you're hoping to take advantage of the HBP!
First Home Savings Account
The First Home Savings Account (FHSA) lets you save up to $8,000 a year (lifetime max of $40,000) for your first home. Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying home are tax-free (like a TFSA). Any leftover room can also be carried over to future years.
Home Buyers' Amount
If you bought a home in 2024, you can claim up to $10,000 on your tax return for a tax credit worth up to $1,500. The only catch is that either it must be your first home, or else you can't have owned a home (in Canada or anywhere else) anytime from 2020 to 2024, inclusive.
Home Accessibility Tax Credit
If you're a homeowner over 65 or who's eligible for the Disability Tax Credit (DTC) and you made upgrades to your home to improve accessibility or safety in 2024, you could be eligible for a Home Accessibility Tax Credit (HATC) of up to $3,000. You can claim up to $20,000 of these home renovation costs on your tax 2024 return.
Multigenerational Home Renovation Tax Credit
New in 2023, the Multigenerational Home Renovation Tax Credit (MHRTC) is a refundable tax credit that lets you claim certain renovation expenses to create a secondary unit for a senior or DTC-eligible family member to come live with you. If your renovation is eligible, you can claim 15% of qualifying expenditures up to a maximum of $50,000 per renovation — which could mean a tax credit of up to $7,500!
GST/HST New Housing Rebate
If you bought a newly built or substantially renovated home worth $450K or less in 2024, you might qualify for a rebate of up to 36% of the GST (or federal portion of the HST) you paid. This could mean a tax rebate of up to up to $6,300!
Principal residence exemption
If you sold your principal residence in 2024, you could be eligible to claim this exemption and reduce or even eliminate taxes on any capital gains you got from the sale.
Residential property flipping rule
If you're planning on selling a home that you've owned for less than 365 days, your profit could be taxed as business income — unless you meet a life event exemption. Be sure to check CRA guidelines before selling to avoid getting slapped with this higher tax.
More about the residential property flipping rule
GST/HST rebate for Purpose-Built Rental Housing (PBRH)
If you bought, built or invested in a new purpose-built rental housing project like a rental apartment complex or student housing in 2024, you could claim a 100% rebate of the GST (or federal portion of the HST) tied to your project's costs.
More about the GST/HST rebate for Purpose-Built Rental Housing
Keeping informed about these tax credits and deductions will help make sure you don't leave money on the table. Happy tax season, Canada!
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