In 2025, Canadian families and individuals living with disabilities are set to benefit from two landmark federal programs designed to ease financial pressures and improve quality of life.
The $7,500 Multigenerational Home Renovation Tax Credit (MHRTC) will help homeowners create safe, accessible living spaces for seniors or relatives with disabilities, while the new Canada Disability Benefit (CDB) will provide up to $200 per month in direct income support.
Together, these initiatives deliver meaningful relief—reducing renovation costs, supporting multigenerational living, and offering stable monthly payments for those who need it most.
Program Highlights
| Program | Who Qualifies | Benefit Amount | How to Claim |
|---|---|---|---|
| MHRTC | Homeowners adding a secondary suite for a senior (65+) or an adult with Disability Tax Credit (DTC) approval | Up to $7,500 (15% of $50,000 in eligible expenses) | File Schedule 12 with your 2025 tax return |
| CDB | Canadians aged 18–64 with DTC approval and low income | Up to $200 per month / $2,400 per year | Apply via CRA My Account between June 20 and Dec 31, 2025 |
Why These Benefits Matter
- Housing costs are at record highs, and many families are turning to multigenerational living to save money and provide care.
- The MHRTC reduces the financial burden of creating safe, accessible living spaces.
- The CDB provides monthly income support, helping disabled Canadians cover essential living costs.
Together, they aim to strengthen families, promote inclusion, and improve affordability nationwide.
Multigenerational Home Renovation Tax Credit (MHRTC)
The MHRTC provides a refundable credit of up to $7,500 for homeowners who build or renovate a self-contained secondary suite.
Eligibility Requirements:
- Must own and live in the home.
- Renovations must be completed in 2025.
- The suite must be for a senior (65+) or an adult approved for the DTC.
Suite Requirements:
- Private entrance.
- Kitchen, bathroom, and bedroom.
- Compliance with building codes and zoning laws.
How to Claim:
- Keep receipts, permits, and photos.
- File Schedule 12 with your 2025 tax return.
- Claim on line 45355.
Canada Disability Benefit (CDB)
The CDB provides up to $200 per month to Canadians aged 18–64 who qualify under the Disability Tax Credit.
Key Dates in 2025:
- Applications open: June 20
- First payments: July (for approvals by June 30)
- Application deadline: December 31
Income Exemptions:
- Singles: First $23,000 exempt, plus $10,000 working income excluded.
- Couples: First $32,500 exempt, plus $14,000 working income excluded.
Example Calculation:
- Single earning $35,000 with DTC approval.
- $10,000 working income excluded = $25,000.
- $23,000 exempt → $2,000 excess.
- 20% reduction = $400.
- Final benefit = $2,000 annually (~$166/month).
How to Apply for Both Benefits
- Obtain DTC Approval – Complete Form T2201 with medical certification.
- Plan Your Renovation – Get contractor quotes and permits, track expenses.
- Apply for CDB – Use CRA’s My Account from June 20, 2025.
- File for MHRTC – Submit with your 2025 return in spring 2026.
- Receive Payments – CDB monthly deposits begin July 2025; MHRTC refunds issued after tax filing.
The launch of the $7,500 MHRTC and the $200 monthly CDB in 2025 represents a major step in affordability and inclusion.
Together, they help Canadians renovate homes for multigenerational living and provide stable income support for those with disabilities. Eligible households should prepare documents early and apply promptly to maximize their benefits.
FAQs
Can I combine the MHRTC with other credits?
Yes. You may stack it with the Home Accessibility Tax Credit, Caregiver Credit, and certain provincial renovation credits.
Will the CDB affect other federal or provincial disability payments?
The CDB is income-tested, but designed to complement—not replace—other disability supports.
Is the MHRTC available every year?
No. It is a lifetime claim per eligible individual, so plan your renovation carefully before applying.