Home Accessibility Tax Credit (HATC)
Notice to the reader
This measure has received Royal Assent.
For the 2022 and subsequent taxation years, the Budget proposes to increase the annual expense limit of the HATC to $20,000, which would provide a tax credit of up to $3,000.
1. What is the HATC?
The HATC is a non-refundable tax credit for eligible home renovation or alteration expenses that allow a qualifying individual to gain access to, or to be mobile or functional within the eligible dwelling or reduce the risk of harm to the qualifying individual within the dwelling or in gaining access to the dwelling. You may be able to claim this credit if you are a qualifying individual or an eligible individual.
2. What are the current rules?
The HATC is calculated by applying the lowest personal income tax rate (15% in 2022) to an amount that is currently the lesser of $10,000 and the eligible expenses in respect of an eligible dwelling for the taxation year. The taxpayer may claim a tax credit of up to $1,500.
Eligible expenses must be incurred for work performed or goods acquired in respect of a qualifying renovation of an eligible dwelling of a qualifying individual.
3. What is changing?
For the 2022 and subsequent taxation years, the Budget proposes to increase the annual expense limit of the HATC from $10,000 to $20,000. This may allow a taxpayer to claim a tax credit of up to $3,000. All other rules regarding the credit and the increased limit would remain the same.
4. Where can I get more information on the current HATC?
For details about the current limit and eligibility criteria of the HATC, go to Line 31285 – Home accessibility expenses
5. Where can I get more information about these changes?
Check online at Canada.ca regularly for updated forms, policies, guidelines, questions and answers, and guidance.
In the meantime, please consult Finance Canada's Budget 2022 documents for details.
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