Filing Your Return -> Disabilities -> First-Time Home Buyers' Tax Credit / Disability Home Purchase Tax Credit
Line 31270 Home Buyers' Tax Credit (HBTC)
Note: Before tax year 2019, line 31270 was line 369.
Income Tax Act s. 118.05
A non-refundable tax credit was enacted as part of the 2009 Federal Budget, based on an amount of $10,000 ($5,000 for taxation years prior to 2022, increased by federal 2022 Budget) for first-time home buyers who acquire a qualifying home after January 27, 2009. The home is considered to be acquired once it is registered in your name in accordance with the land registration system or other similar system applicable where it is located (in Canada). The year of acquisition is the year in which the tax credit can be claimed. If you missed claiming this credit in the year of purchase, you can file an adjustment to your tax return. See our article on Changing Your Tax Return.
Year of Acquisition
The home is considered to be acquired in the taxation year in which the home is registered in the name of the individual. As per s. 118.05(2) of the Income Tax Act, "an individual is considered to have acquired a qualifying home only if the individual's interest (or for civil law, right) in it is registered in accordance with the land registration system or other similar system applicable where it is located. Tax Interpretation 2010-0357201E5 addresses the situation where a condo buyer occupies the condo in one tax year but is not registered as the legal owner until the subsequent tax year. The HBTC is not available until the subsequent tax year.
Home Received as Gift
Note that if a home is gifted to a person, as long as all other requirements are met, the person can still qualify for the home buyers' tax credit. The person who gifted the home is deemed to have disposed of it, and may have to report a capital gain.
Effect of Disability Tax Credit
The credit is also be available in respect of a home acquired by an individual who is eligible for the disability tax credit (DTC), or by an individual for the benefit of a DTC-eligible relative, if the home is acquired to enable the DTC-eligible person to live in a more accessible dwelling.
Who Claims the Home Buyers' Tax Credit?
The credit can be claimed by the individual who acquires the home, or by the spouse or common-law partner of that individual, or can be split between spouses.
Eligibility for the Home Buyers' Tax Credit
To be eligible for this credit, you must not have lived in another home owned by you or your spouse or common-law partner in the calendar year of the home purchase or in any of the four preceding calendar years.
The Canadian Tax Calculator includes the first-time home buyers' tax credit.
Provincial First-Time Home Buyers' Credits
Quebec First-Time Homebuyers' Tax Credit beginning in 2018
First-Time Home Buyer Incentive (FTHBI) to fund part of your purchaseGST/HST Rebate for New Housing and Substantial Renovations
Canada Revenue Agency (CRA) and Finance Canada ResourcesLine 31270 Home Buyers' Amount
Revised: September 20, 2022
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