Multigenerational Home Renovation Tax Credit: building an in-law suite

Families who build a self-contained suite so a parent 65 or older can live with them may get back up to $7,250 (2025) through this refundable federal tax credit.

By ParentCare Ontario Editorial, published by Otonabee Marketing. Facts checked October 28, 2026. General information, not tax, legal or medical advice.

The basics

• Amount: 14.5% (2025) of up to $50,000 in costs, so up to $7,250 (2025).
• Refundable: yes. It's paid even if no tax is owed.
• Who it's for: a relative who is 65 or older, or an adult eligible for the Disability Tax Credit, moving in with family.
• What must be built: a self-contained secondary unit with its own private entrance, kitchen, bathroom and sleeping area.
• Where to claim: federal tax return, line 45355, for the year the work is finished.

Before you build

• Check your city's zoning and building permit rules for secondary suites.
• Keep every invoice and receipt, with the contractor's business and HST numbers.
• Plan accessibility in from the start (step-free entry, a walk-in shower, wider doors); some of those costs may also count for the Home Accessibility Tax Credit. A tax professional can confirm.