Understanding Canada’s Multigenerational Home Renovation Tax Credit

by realtor.ca team

An increasing number of Canadians are turning to multi-generational living to help save money and cut down on their cost of living.

In fact, the number of homes shared by multiple generations of a family, two or more families, or one family living with non-related persons has risen by 45% in 20 years, according to the latest census data from Statistics Canada. By 2021, there were close to one million of these types of households, making up 7% of all homes in Canada.

In recognition of this growing trend, the federal government proposed the multi-generational home renovation tax credit in its 2022 budget. As of January 1, 2023, the tax credit is officially in effect. The goal, as promised by the Liberal government during the 2021 election campaign, is to “help make communities more livable while bringing families closer together and better able to care for one another.”

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