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Home Buyers' Tax Credit - Basics
Qualifying Home for the Home Buyers' Tax Credit
Specified Person / Persons With Disabilities
Eligibility for the Home Buyers' Tax Credit
First-Time Home Buyers' Tax Credit Year of Acquisition
First-Time Home Buyers' Tax Credit - Home Received as Gift
Who Claims the Home Buyers' Tax Credit?
Provincial First-Time Home Buyers' Credits
Canada Revenue Agency (CRA) Resources
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 acquisition, you can file an adjustment to your tax return. See our article on Changing Your Tax Return.
The tax credit is based on a maximum of $10,000 per qualifying home.
A qualifying home means:
A qualifying home is one that is acquired, jointly or otherwise, if:
This means the individual, or a person who is related to the individual, if they are eligible for the disability tax credit in the year the home is acquired. In this case, the individual does not have to be a first-time home buyer.
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.
Tax Tip: If you previously owned a home that you did not live in (e.g., you rented it out), you may still qualify for the tax credit.
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.
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.
See Gifting a Capital Property is a Disposition.
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.
This is confirmed by Tax Interpretation 2011-0394311E5 First Time Home Buyers Tax Credit.
Nova Scotia First-Time New Home Buyers' HST Rebate
Saskatchewan First-Time Homebuyers' Tax Credit
Quebec First-Time Homebuyers' Tax Credit beginning in 2018
First Home Savings Account (FHSA)
First-Time Home Buyer Incentive (FTHBI) to fund part of your purchase
GST/HST Rebate for New Housing and Substantial RenovationsFederal and Provincial Programs for Home Buyers / Home Owners