$7,500 Home Renovation Credit Canada 2025 – Who Qualifies and How to Claim

With housing affordability challenges and rising maintenance expenses putting pressure on households, the federal government has announced a $7,500 Canada Home Renovation Credit available in September 2025. This initiative is designed to help Canadians make essential upgrades, improve energy efficiency, and ensure homes remain safe and livable.

The program builds on the government’s broader affordability strategy, providing tax relief for homeowners who invest in qualified renovations. For many families, this could mean the difference between delaying urgent home repairs and finally making them possible.

What Is the $7,500 Canada Home Renovation Credit?

The Home Renovation Credit is a refundable tax credit that offsets a portion of eligible home improvement costs. Unlike a loan, this credit reduces the taxes you owe or increases your refund when you file your return.

The 2025 credit applies to renovation projects that:

• Increase energy efficiency (e.g., new insulation, HVAC systems)
• Enhance accessibility for seniors and people with disabilities
• Improve structural safety (e.g., foundation repairs, roof replacement)
• Upgrade essential living spaces (kitchens, bathrooms, basements)

Purely cosmetic projects such as interior painting or decorative upgrades generally do not qualify, unless they are part of a larger structural or efficiency-focused renovation.

Eligibility for the $7,500 Renovation Credit

To ensure the credit targets households in need, the government has established specific eligibility rules:

• Residency Requirement: Applicants must be Canadian citizens, permanent residents, or legal residents living in Canada.
• Primary Residence: Only owner-occupied homes qualify. Vacation properties, rental units, and commercial spaces are excluded.
• Ownership: The applicant must be the legal homeowner. Tenants cannot claim this credit.
• Minimum Spending: Renovation expenses must exceed \$5,000. The maximum benefit of \$7,500 applies to qualifying projects above this threshold.
• Qualified Work: All renovations must be carried out by licensed contractors, and applicants must keep detailed invoices and receipts.
• Deadline: Claims must be submitted no later than December 31, 2025.

How to Claim the $7,500 Credit Online

Applying for the credit is streamlined through the Canada Revenue Agency (CRA) online system. Here’s the step-by-step process:

1. Collect Documentation

• Save all receipts and invoices for renovation expenses.
• Ensure documents include contractor details and GST/HST charges.

1. Log in to CRA My Account

• Access your account at canada.ca.
• If you do not have an account, create one with your Social Insurance Number (SIN).

1. Navigate to Credits Section

• Under the “Tax Credits” menu, select Home Renovation Credit 2025.

1. Enter Renovation Details

• Input the total cost of renovations, broken down by category.
• Upload digital copies of invoices or receipts.

1. Submit Your Claim

• Double-check entries before submission.
• Submit the claim electronically through CRA.

1. Await Processing

• CRA will review your application.
• Once approved, the credit will appear as a tax refund or reduced balance owed for the 2025 tax year.

Renovations Covered by the $7,500 Credit

The government has identified a broad set of eligible projects:

• Energy Efficiency Upgrades: Window replacements, insulation, solar panels, and high-efficiency heating or cooling systems.
• Kitchen and Bathroom Renovations: Full remodels that improve utility, plumbing, or structural components.
• Accessibility Improvements: Ramps, stair lifts, wider doorways, grab bars, and modified bathrooms for people with mobility needs.
• Structural Repairs: Roofing, foundation reinforcement, wall repairs, and replacement of outdated electrical systems.
• Basement Conversions: Transforming unfinished basements into safe, livable spaces.

Ineligible projects include decorative-only improvements such as landscaping, wall painting, or luxury additions like swimming pools

Important Dates to Remember

To take full advantage of the 2025 Home Renovation Credit, homeowners should keep track of these critical dates:

Event	Date
Program Launch	September 2025
Application Window	September – December 31, 2025
Claim Deadline	December 31, 2025
Credit Applied To	2025 tax return, filed in 2026

Why This Credit Matters in 2025

The credit is being introduced at a time when:

• Inflation is raising the cost of construction materials.
• Mortgage renewals are straining family budgets.
• Aging housing stock across Canada requires urgent repairs.

By covering up to $7,500, the government aims to encourage sustainable upgrades, improve housing safety, and ease financial stress for homeowners.

How the Credit Supports Climate Goals

A significant portion of eligible renovations focus on energy efficiency. The credit encourages Canadians to install:

• Solar panels
• Smart thermostats
• Energy-efficient HVAC systems
• Advanced insulation

This aligns with Canada’s net-zero emissions goals, while also reducing household energy bills.

5 FAQs

Q1: Who qualifies for the \$7,500 Home Renovation Credit in 2025?
Canadian residents who own and live in their primary residence, spend more than \$5,000 on eligible renovations, and file their taxes on time qualify.

Q2: What types of renovations are covered?
Energy-efficient upgrades, structural repairs, kitchen and bathroom remodels, accessibility modifications, and basement conversions are eligible.

Q3: How do I apply for the credit?
Apply online through the CRA My Account portal by submitting renovation costs, receipts, and contractor invoices.

Q4: Is the \$7,500 credit refundable?
Yes. The credit either reduces the tax you owe or provides a refund if your taxes are already paid.

Q5: What is the deadline to claim the credit?
Claims must be submitted no later than December 31, 2025 for application to the 2025 tax year.