Your taxes as a homeowner

Filing your first tax return as a homeowner? Whether you’re a novice or simply looking for a refresher, let’s walk through the tax preparation process together.

When it comes to taxes, setting aside some time to get ready in advance can help save you time, energy, and even money. Here are a few things you’ll want to keep in mind when filing your taxes for the first time as a homeowner. Plus, we’ll discuss the credits, rebates, and deductions you could be eligible for.

Key deadlines to remember

First, let’s go over some of the important dates you should know for each tax year:

• Personal income tax returns are due April 30 every year. If it falls on a weekend, you’ll have until the next business day
• If you’re self-employed, June 15 is your tax return deadline
• Owe a tax balance? You'll need to make your payments by April 30

Update your address

This part’s easy. If you purchased your first home last year or moved, you’ll need to let the Canada Revenue Agency (CRA) know. Simply include your updated address when filing your tax return to quickly cross this off your to-do list.

Homeowner tax breaks you could get

Your new home comes with tax breaks you may be familiar with and some that you may not be. For example, have you landed a job that lets you work from home? Or, did you renovate your home to make it more accessible for yourself or another person living there? These are all credits you can qualify for. Let’s dive in:

1. First-Time Home Buyers’ Tax Credit (HBTC)

After months of searching, you and your family finally moved into the right home for you. Perhaps it’s a duplex in a cozy, suburban neighbourhood, or an apartment unit in a thriving metropolitan area. Either way, don’t file away your home buying paperwork just yet. You can claim a non-refundable federal income tax credit called the First-Time Home Buyers’ Tax Credit.

To help make homeownership affordable for more Canadians, the federal government increased this tax credit from $5,000 to $10,000 in 2022. This means a tax rebate of up to $1,500 for eligible home buyers. You can check out the eligibility requirements below.

If you’re wondering how you can claim your HBTC, you’re in luck. There’s no application or approval process. You only need to enter $10,000 on Line 31270 of your income tax return. Or, you can split the amount with your spouse or common-law partner (as long as both of your total claims don’t surpass $10,000).

There are also a few other requirements you’ll need to meet to be eligible for this credit:

• Your property must be within Canada and registered in your name, or your spouse or common law partner’s name.
• Your property must fall within the CRA’s qualifying property types. For example, townhouses, apartment or condo units, and single-family houses qualify. See the full list of qualifying homes.
• Your property must be your primary place of living within a year of purchase
• You haven’t lived in another home that you (or your spouse or common-law partner) purchased or owned in any of the four previous years

You can also apply for this tax credit without being a first-time home buyer. To do this, you’ll need to be eligible for the disability tax credit, or have purchased the home on behalf of someone eligible for the disability tax credit.

2. Home Buyers’ Plan

A Registered Retirement Savings Plan (RRSP) doesn’t just help you save for retirement. It could also come in handy when purchasing your first home. If you haven’t owned a home in the past four years, you can withdraw up to $60,000 tax-free for a down payment.

Curious about what you’ll need to gather to make your tax-free withdrawals? You can request withdrawal by submitting the Form T1036, Home Buyer’s Plan (HBP) Request to Withdraw Funds from an RRSP.

Note, although withdrawing under Home Buyers’ Plan (HBP) is free, you’ll have to pay back any funds you withdraw within 15 years. If not, the withdrawals could become taxable. For more details, see the CRA page how to repay the funds withdrawn from RRSP(s) under the Home Buyers’ Plan.

Wondering how the repayment process works? Your repayment period begins in the fifth year after your withdrawal. So, if you withdrew funds in 2025, you’d start repaying in 2030—although you can choose to begin earlier. Each year, the CRA will send you a HBP statement of account, which will include your overall balance, your yearly installment amount, and what you’ve repaid so far.

Your yearly installment amount is your full withdrawal amount divided by 15, since you have 15 years to pay it back. If you choose not to pay off your HBP balance, the amount will be added to your taxable income for that tax year. Note, your repayments will not count as RRSP contributions and won’t be eligible for tax-deductions, as you will have already received deductions on the original deposit.

3. GST/HST new housing rebate

If you’ve recently built a home or purchased it from a builder, you may be able to recover some of the GST (or the federal part of the HST) you paid on your purchase. You could also qualify for this rebate if you substantially renovated your home by removing or replacing at least 90% of its interior or making a major addition. Plus, the renovated or purchased property must be your primary residence and its fair market value must be under $450,000. Mobile, floating and modular home purchases or renovations also qualify.

To learn more about your eligibility, visit the CRA’s GST/HST new housing rebate page.

4. Home Accessibility Tax Credit (HATC)

Renovating your home to make it safer or more accessible for you or another person could qualify you for HATC. In 2022, the credit amount doubled, allowing homeowners to claim up to $20,000 in expenses. Once you claim the amount, you could receive up to 15% of the renovation fees as a tax reduction. To be eligible, you'll need to:

• Own a property
• Qualify for the disability tax credit, or be eligible to make a claim on behalf of a qualifying person
• Be over 65 years old

Your renovations or expenses will also need to meet specific criteria. A qualifying renovation has to be permanent, and it’ll need to help achieve one of the following:

• Help you or another qualifying person access or travel around the home more easily
• Reduce the risk of harm to the qualifying person when in the home, or gaining access to it

To receive this credit, complete your Federal Worksheet and enter your result on line 31285 of your return. Check out the CRA page Home Accessibility Tax Credit for more details.

5. Medical expenses tax credit

If you have any mobility limitations, you may be able to claim some of the expenses of making your home more accessible. See the comprehensive list of eligible medical expenses you can claim.

6. Rent-related expenses

Perhaps you purchased an entire property to place on AirBnB, or you found a roommate to help keep your spare bedroom from collecting dust. Either way, renting is a great way to bring in another source of income. Like all income, however, it must be declared on your taxes. But, did you know you can also deduct renting-related expenses? From property taxes to advertising fees to insurance and office expenses, check out the full list of deductible expenses on rental income.

7. Moving expense deductions

Moving can be expensive, especially when you factor in movers, storage costs, and travel expenses. That said, you may be able to claim some of your expenses if you relocated more than 40 kilometers for work, business, or post-secondary education. Be sure to complete the Form T1-M, Moving Expenses Deduction for an estimate of the moving expense deductions you can claim on line 21900 of your tax return.

8. Work from home tax credits

Working remotely doesn’t just cut down on your commuting expenses, but it could also qualify you for some tax credits. Be sure to keep track of your utility and internet bills, office supplies, and repair or maintenance expenses. These details could help you recover a portion of your work from home expenses. For more information on expenses you can claim working from home, visit the CRA page on home office expenses for employees.

9. Provincial tax benefits

Do you live in British Columbia, New Brunswick, or Ontario? If so, you could be eligible for additional tax credits when you renovate your home for accessibility purposes. Or, if you live in Ontario, you may be able to claim an energy and property tax credit. Plus, as a first-time home buyer in Ontario, British Columbia, Prince Edward Island, or the city of Toronto, you could be eligible for a land transfer tax rebate. Certain provinces (and cities) offer this rebate to help offset the cost of the land transfer tax you pay when purchasing your home.

Be sure to review the CRA’s list of other provincial credits and grants you could claim on your tax return.

Contrary to popular belief, tax season doesn’t have to be a stressful period. Understanding common homeowners’ tax breaks will allow you to confidently file your taxes year after year. Plus, getting the credits, deductions, and rebates you qualify for could help make owning your home that much more affordable.

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