Canada $7,500 Home Renovation Credit 2025 – Eligibility, Claim Process, and Covered Upgrades

In September 2025, Canada introduces an exciting opportunity for homeowners to invest in improving their properties with the Canada Home Renovation Credit. This credit provides up to $7,500 in tax relief to eligible individuals who undertake qualifying home renovations. Whether you’re looking to upgrade your kitchen, enhance energy efficiency, or make accessibility improvements, this program is designed to make home renovations more affordable for Canadian homeowners.**

Purpose of the Home Renovation Credit

The Canada Home Renovation Credit was launched to support homeowners in making necessary and value-adding improvements. With rising costs of construction materials and inflation, the scheme offsets a portion of renovation expenses, allowing families to maintain safe, energy-efficient, and accessible homes.

What the $7,500 Credit Covers

The 2025 credit applies to a wide range of qualifying renovation types. Eligible projects include:

• Energy-efficient upgrades like new windows, insulation, or solar panels.
• Kitchen and bathroom remodels that improve functionality.
• Accessibility modifications, such as ramps or modified bathrooms.
• Structural repairs including roofs, foundations, or basement finishing.
• Major safety improvements to enhance property value and living conditions.

However, purely cosmetic changes (like painting or new décor) are not covered unless they form part of a larger, qualifying renovation.

Eligibility for the Canada Home Renovation Credit

To benefit from the program, applicants must meet specific requirements:

• Residency: Canadian citizens, permanent residents, or legal residents.
• Homeownership: Must own and live in the property as their primary residence. Rental properties, vacation homes, or commercial buildings are excluded.
• Renovation Costs: Eligible renovations must cost more than $5,000.
• Maximum Credit: Up to $7,500 is available per household.
• Licensed Contractors: Work must be completed by licensed professionals with receipts provided.
• Claim Deadline: Applications must be submitted before December 31, 2025.

How to Claim the $7,500 Credit Online

The Canada Revenue Agency (CRA) has streamlined the process to make claiming straightforward:

1. Gather Documents: Collect invoices and receipts from licensed contractors.
2. Log in to CRA My Account: Required to file the claim.
3. Locate Tax Credit Section: Select “Home Renovation Credit 2025.”
4. Enter Details: Input renovation costs, upload receipts, and ensure totals exceed $5,000.
5. Submit Claim: Double-check accuracy before filing online.
6. Confirmation & Refund: Once approved, the CRA will apply the credit to your tax return as a refund or deduction.

Types of Renovations That Qualify

The program is designed to ensure practical and meaningful renovations receive support. Eligible categories include:

• Energy Efficiency: Insulation, HVAC upgrades, solar panel installation.
• Accessibility: Wheelchair ramps, stair lifts, wider doors, bathroom modifications.
• Safety and Repairs: Roof replacements, foundation fixes, structural wall repairs.
• Modernisation: Major kitchen or bathroom renovations.
• Basement Renovations: Turning unfinished basements into functional living spaces.

By targeting these improvements, the scheme balances property value growth with community sustainability.

Important Dates to Remember

• Start of Eligible Renovations: Any time during 2025.
• Claim Submission Deadline: December 31, 2025.
• 2025 Tax Filing Deadline: April 30, 2026.

Homeowners must complete and file their claims before the year-end to avoid losing eligibility.

Broader Impact of the Program

The Canada Home Renovation Credit not only benefits homeowners but also stimulates the construction industry. By encouraging renovations, the program creates jobs, promotes energy efficiency, and supports accessibility initiatives, making Canadian communities stronger and more sustainable.

FAQs – Canada $7,500 Home Renovation Credit 2025

Q1: Can I claim the credit for DIY renovations?
A1: No. Only renovations carried out by licensed contractors with official receipts are eligible.

Q2: Can multiple properties qualify for the credit?
A2: No. The credit applies only to your primary residence. Secondary homes, rentals, or vacation properties do not qualify.

Q3: What happens if I spend less than $5,000?
A3: Renovations below $5,000 are ineligible. To claim, expenses must exceed this threshold.

Q4: When will I receive the tax relief?
A4: Once your claim is approved, the credit will appear on your 2025 tax return, either reducing taxes owed or generating a refund.

Q5: Are all renovation types included?
A5: Only eligible projects like energy upgrades, structural repairs, accessibility improvements, and major remodels are covered. Purely cosmetic changes are excluded.