The federal Multigenerational Home Renovation Tax Credit (MHRTC) offers up to $7,500 (15% of $50,000) for building a secondary suite to house a senior (65+) or adult with disability. Here's how Ottawa homeowners qualify and claim it in 2026.
15% of up to $50,000 in eligible renovation expenses = maximum $7,500 tax credit. Refundable credit — even if you owe no tax, you receive the credit as a payment. Available once per qualifying individual; not per renovation. Claimed in the tax year the renovation is completed. Stacks with provincial energy retrofits, Canada Greener Homes, and other federal programs (but not double-dipping the same expense).
Qualifying individual: (1) age 65+ at end of tax year, OR (2) adult age 18-64 eligible for the Disability Tax Credit. Qualifying relation: parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew, niece (of taxpayer or spouse). Secondary unit: must be self-contained with its own entrance, kitchen, bathroom, and sleeping area. The qualifying individual must occupy the secondary unit within 12 months of construction completion AND live there for at least 12 months.
All costs of building the secondary unit including: labour, materials, equipment rental, professional fees (architect, engineer, designer), permits, building inspections. Includes: foundation work, framing, drywall, flooring, kitchen and bathroom installation, electrical/plumbing/HVAC for the secondary unit, finishes. Excludes: furniture/appliances (unless built-in like dishwasher), security/electronic systems (unless integrated), landscaping (unless required by permit), regular home maintenance...
(1) Verify qualifying individual eligibility (age 65+ or DTC-approved). (2) Confirm secondary unit meets self-contained requirement (kitchen, bath, entrance, sleeping area). (3) Retain ALL receipts, contracts, contractor invoices showing labour + materials separately. (4) Document occupancy by qualifying individual within 12 months (utility bills, drivers licence, lease if applicable). (5) Complete Schedule 12 (MHRTC) with your T1 tax return for the year of completion. (6) Submit with full docum...
Canada Secondary Suite Loan: up to $80K at 2% over 15 years for the same secondary suite construction. MHRTC eligible expenses can also be paid from this loan. Net effect: $50K of suite construction can yield $7,500 tax credit + $50K of the cost financed at 2%. Energy retrofits within the secondary suite (heat pump, insulation, windows) may also qualify for Canada Greener Homes Grant. Ottawa Home Accessibility Tax Credit (HATC): if renovation includes accessibility features, up to $3,000 additio...
(1) Basement apartment for aging parent: typical Ottawa basement suite $65K-$135K. Claim $7,500 MHRTC + 2% loan financing. (2) Detached coach house for adult child with disability: $185K-$325K Ottawa range. MHRTC credit + Greener Homes Loan stack. (3) Garden suite (detached single-storey): $145K-$245K. (4) In-law suite addition (attached, separate entrance): $145K-$285K. All require Ottawa zoning conformance — see SDU and zoning guides.
Up to $7,500 (15% of $50,000 in eligible expenses). Refundable credit — you receive it as a payment even if you owe no tax. Available once per qualifying individual.
Qualifying individual must be 65+ OR an adult (18-64) eligible for the Disability Tax Credit. They must be a close relative (parent, grandparent, child, sibling, etc.) of the taxpayer or spouse. They must occupy the new secondary suite within 12 months and live there at least 12 months.
Self-contained dwelling with its own (1) entrance, (2) kitchen, (3) bathroom, (4) sleeping area. Can be basement apartment, attached in-law suite with separate entrance, detached garden suite, or coach house. Must be a separate dwelling — not just an extra bedroom or open-plan addition.
Yes — MHRTC tax credit + Canada Secondary Suite Loan (up to $80K at 2% over 15 years) stack on the same secondary suite construction. Both programs can apply to the same renovation expenses without double-dipping the dollars themselves.
On your T1 tax return for the year renovation is COMPLETED (not the year you start). Use Schedule 12. Retain all contractor invoices, receipts, and proof of qualifying individual occupancy for at least 6 years in case of CRA review.