Renovation Tax Credits & Rebates in Toronto — 2026 Guide

Federal Tax Credits

Multigenerational Home Renovation Tax Credit (MHRTC)

If you are building a self-contained secondary suite (with kitchen, bathroom, and private entrance) for a senior aged 65+ or an adult eligible for the Disability Tax Credit, you can claim 15% of up to $50,000 in qualifying construction costs. This is a refundable credit worth up to $7,500 on your annual tax return. The suite must be a legally compliant, self-contained dwelling within your home. Details from the Canada Revenue Agency.

Home Accessibility Tax Credit (HATC)

For seniors (65+) and individuals eligible for the Disability Tax Credit, this non-refundable credit covers up to $20,000 per year in home modifications that improve safety and mobility. Qualifying work includes wheelchair ramps, walk-in bathtubs, wheel-in showers, and structural grab bars. The expenditures must be of an enduring nature and integral to the dwelling. Details from the CRA.

HST New Housing Rebate

For projects involving substantial structural transformation — where renovation costs exceed 90% of the home's pre-renovation value — you may be eligible to recover up to $30,000 in HST. This applies to major gut renovations and property conversions, not typical kitchen or bathroom upgrades. Confirm eligibility with the CRA.

Ontario: Home Renovation Savings Program

Ontario's primary rebate program is the Home Renovation Savings Program, delivered through Enbridge Gas and Save on Energy. It offers two pathways:

Comprehensive Retrofits (requires a home energy assessment)

You must complete at least two bundled upgrades to qualify. A pre- and post-renovation EnerGuide audit is required (subsidized by a $600 rebate).

Single / Targeted Upgrades (no energy assessment required)

Apply after the work is done. Low-income households may qualify for free upgrades through the related Energy Affordability Program. Visit saveonenergy.ca or homerenovationsavings.ca for eligibility and applications.

City of Toronto Programs

Basement Flooding Protection Subsidy Program (BFPSP)

Enhanced effective May 2026. Maximum lifetime subsidy per property nearly doubled — from $3,400 to $6,650. Covers 80% of invoiced costs for backwater valves, sump pumps, pipe severance, and a new $300 sump pump battery backup subsidy. Apply through the City of Toronto water services page.

Eco-Roof Incentive Program

Subsidies for green roofs ($100 per square metre, up to $100,000) and cool roofs ($2–$5 per square metre, up to $50,000). Structural assessment grants of up to $1,000 are also available. Applications must be submitted and approved before construction begins. Details at toronto.ca/eco-roof.

Home Energy Loan Program (HELP)

Low-interest municipal loans up to $125,000 for energy retrofits (geothermal, windows, air sealing). Repaid through your property tax bill and transferable if you sell. 2026 fixed rates range from 3.23% (5-year term) to 4.73% (20-year term). Details at toronto.ca/HELP.

Timing Matters

The best time to capture energy rebates is during a renovation, when walls are already open and mechanical systems are accessible. Upgrading insulation, switching to a heat pump, or adding smart thermostats during construction costs significantly less than retrofitting later — and the rebates offset a meaningful portion of the incremental cost.

Review our basement renovation guide for flood protection subsidy details, and the financing options page to understand how rebates can work alongside your project financing.