Understanding tax breaks can help you save money when buying or renovating a home in Toronto. Here are six key real estate tax benefits every homeowner and buyer should be aware of.
1. Home Buyers’ Plan (HBP)
This allows first-time buyers to withdraw up to $60,000 tax-free from their RRSP for a home purchase, with a 15-year repayment period.
2. First Home Savings Account (FHSA)
A new savings plan allowing contributions of up to $8,000 per year (or $40,000 lifetime) toward a home purchase.
3. Home Buyers’ Amount (HBA)
A non-refundable tax credit of up to $1,500 for first-time homebuyers.
4. Home Accessibility Tax Credit (HATC)
This credit provides up to $20,000 in eligible expenses for home renovations that improve accessibility, with a maximum claim of $3,000.
5. Multigenerational Home Renovation Tax Credit (MHRTC)
A refundable tax credit of up to $7,500 for secondary suites added for seniors or disabled family members.
6. GST/HST New Housing Rebate
This rebate applies to a portion of GST/HST paid on a newly built home and to homes worth less than $450,000.
Maximize Your Real Estate Savings
Navigating real estate tax incentives can be complex, but taking advantage of these tax breaks can help you save thousands. If you’re planning to buy, sell, or renovate a home in Toronto, I can guide you through the process to maximize your savings.