Buying (or Improving) a House in 2026? Don’t Miss These Tax Perks

If you’re planning any housing or financial goals for 2026, affordability worries are probably front and center.

The national average home price is expected to reach $698,622 in 2026, up 3.2% from 2025, according to the Canadian Real Estate Association (CREA).

Even with decent mortgage rates and healthy inventory, that’s a steep price tag for many would-be home buyers.

Whether you’re saving for your first place or planning to upgrade your current home, it pays to be familiar with helpful tax incentives that could ease some of the financial pain.

Here are some key programs and strategies that homebuyers and homeowners can use. Be sure to speak with a tax professional about whether there might be others that could help you save.

And if you made eligible renovations or already bought your first home in 2025 — congrats! Make a plan to claim applicable credits when you file your taxes next spring.

For aspiring home buyers in 2026

1. First Home Savings Account (FHSA)

Saving up for an ample down payment is a tall order these days, creating a barrier to homeownership.

That’s where the tax-free First Home Savings Account (FHSA) comes in handy, says Shalini Dharna, a chartered professional accountant and financial advisor in Mississauga, Ontario. “It’s designed as a savings account with the intention that it’ll one day be used as your down payment towards owning a home,” Dharna says.

Key benefits of the FHSA include:

2. Home Buyers’ Plan (HBP)

First-time buyers can withdraw up to $60,000 from their RRSP tax-free for a down payment on a home through the Home Buyers’ Plan.

Unlike the FHSA, funds withdrawn through the HBP must be repaid within 15 years. The home must be your primary residence for the first year of ownership.

3. First-Time Home Buyers’ Tax Credit

If you purchase your first home in 2026, you can claim a $10,000 non-refundable tax credit, saving you up to $1,500 on your tax bill. This one-time credit, based on a 15% credit rate, can provide meaningful relief at tax time.

If you already bought a home in 2025, keep your purchase documents handy in case the CRA needs to confirm property eligibilty.

For current homeowners planning renovations

If you’re planning home improvements next year, keep these tax credits in mind for qualifying projects.

And if you’ve already completed these projects in 2025 (or can squeeze them in by Dec. 31), hold onto your receipts so you can claim these items on your tax return in a few months.

4. Home Accessibility Tax Credit

Renovating your home to make it accessible for someone who has a physical disability? Spend up to $20,000 in qualifying renovations, and you could receive a 15% credit (up to $3,000) on your taxes.

To be eligible, someone in your home must be a senior or someone who receives the federal disability tax credit — and must benefit from the renovations.

“These aren’t necessarily really large credits, but you’re going to spend those dollars anyway,” Dharna explains. “As long as you have your receipts and proof, you can potentially claim the material costs even if you bought supplies from Home Depot and did the work yourself.”

Qualifying accessibility improvements include things like:

5. Multigenerational Home Renovation Tax Credit

If you remodel your home to create living space for a relative, the multigenerational home renovation tax credit (MHRTC) allows you to claim 15% of up to $50,000 in qualifying expenses for each eligible renovation you complete.

That means you could get up to $7,500 for each eligible claim you make, leading to substantial savings on your tax bill.

Eligible is the key term here, so make sure you understand the requirements before going all in. The space you create must have a private entrance, its own kitchenette or kitchen, a bathroom and a sleeping area to be eligible, for instance.

Examples include finishing a basement, converting a garage into an in-law suite or adding a detached structure in your backyard (like an accessory dwelling unit, or ADU).

“It’s not just bringing them into your existing dwelling,” Dharna says. “You’re building a mini apartment for them inside your space.”