Renovation or Construction Expenses

Are renovation or construction expenses CRA eligible in Canada?

Conditionally. Home renovation or construction expenses are eligible under the Medical Expense Tax Credit (METC) and can be reimbursed through a Health Spending Account (HSA) only when they are made to allow a person with a severe and prolonged mobility impairment — or who lacks normal physical development — to gain access to their dwelling or be more mobile within it. Both owned and rented dwellings qualify.

For renovations to an existing dwelling, CRA applies a three-part test. All three conditions must be met:

1. The renovations enable the person to gain access to, or be more mobile or functional within, the dwelling
2. The expenses would not typically be expected to increase the value of the dwelling
3. The expenses would not normally be incurred by persons who do not have a severe and prolonged mobility impairment or who do not lack normal physical development

For new construction, the eligible amount is the incremental cost above the cost of an average dwelling without the accessibility features.

What Qualifies

• Wheelchair ramp construction or installation to provide home access
• Widening of doorways or hallways to accommodate a wheelchair or mobility aid
• Accessible bathroom modifications (roll-in shower, grab bars as part of a larger renovation, lowered vanities)
• Stair lift, platform lift, or elevator installation within the home
• Modifications that allow a person with limited mobility or a developmental disability to move through their dwelling independently
• Architect and contractor fees directly related to the accessibility renovation or construction
• Renovations to either an owned or rented dwelling

What Does Not Qualify

• General home renovations without an accessibility purpose
• Hardwood flooring, hot tubs, or swimming pools — CRA specifically notes these typically increase property value and would normally be incurred regardless of disability
• Renovations that increase the value of the dwelling beyond the accessibility benefit
• Renovations that persons without a mobility impairment or developmental condition would normally incur

Good to Know

• For new construction, only the incremental cost above an average dwelling qualifies
• If a GST/HST new housing rebate is received, the eligible expense must be reduced by the rebate amount

Frequently Asked Questions

Are renovation or construction expenses CRA eligible?

Conditionally. Only renovations made to provide a person with a severe mobility impairment (or who lacks normal physical development) access to their home or greater mobility within it are eligible. CRA applies a three-part test: the work must enable access or mobility, would not typically increase the dwelling's value, and would not normally be incurred by someone without the impairment.

Can I claim home renovation expenses through my HSA?

Yes, if the renovation qualifies under the METC rules. Submit receipts from contractors and documentation showing the disability-related purpose.

Source

Based on the CRA's official eligible medical expenses list and Income Tax Folio S1-F1-C1, "Alterations to an existing dwelling or construction".