4 Home Improvement Projects That Are Tax Deductible

Whether you’re a new homeowner who’s knee-deep in a gut renovation or you’re making necessary upgrades to your forever home, you might think that every home improvement is simply a sunk cost. Don’t despair, though. Home improvements can greatly increase the value of your home in the long run (especially if you decide to sell). You can also get a much-needed tax break if your renovation projects qualify. Courtney Klosterman, home insights expert at the home insurance company Hippo, is here to walk us through the specifics.

“Despite a really rocky year for homeowners in terms of rising

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Are home renovations tax deductible in Canada?

Can I claim home renovations on my taxes in Canada?

There is currently a Canada Greener Homes Initiative that provides both grants and loans for home evaluations and retrofits, Joan. 

See the below chart for eligible retrofits. 

Home improvement Amount Good to know
Space and water heating Up to $5,000 If a pump is installed in a home by a licensed professional and is on the eligible product list for ground source heat pumps, air source heat pumps or heat pump water heaters, it may qualify. The pump must be purchased in Canada or from a distributor located in Canada. 
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CRA has clarified the rules for new MHRTC home renovation tax credit

Jamie Golombek: Main home and secondary unit for a relative can be built at same time and still qualify for $7,500 credit

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Among the 2023 tax changes

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