How to Claim the Home Buyers’ Tax Credit in Canada (First-Time Buyer Guide)

Tax Season Is Here: Bought a Home Last Year? Don’t Miss This $1,500 Federal Tax Credit

If you purchased a home last year, this is the part of tax season that actually matters.

The federal government offers the First-Time Home Buyers’ Tax Credit, claimed as the Home Buyers’ Amount on Line 31270 of your income tax return.

Here’s what you need to know.

Use the navigation guide below to explore Claiming the Home Buyers Amount Tax Credit in Canada:  

• What Is the Home Buyers’ Amount?
• Who Qualifies?
• How to Claim It
• When Do You Claim It?
• What Should You Keep on File?
• Quick Filing Checklist
• Some Important Things to Know

What Is the Home Buyers’ Amount?

Eligible buyers can claim up to $10,000 on Line 31270.

That amount is multiplied by the lowest federal tax rate of 15%, which equals a maximum $1,500 federal tax credit.

This is a non-refundable credit. It reduces the federal tax you owe but will not create a refund beyond bringing your balance to zero.

It lowers your tax bill. It does not create a bonus cheque.

Who Qualifies?

You may qualify if all of the following apply.

• You acquired a qualifying home.
  The property must be located in Canada, registered in your name (or your spouse/common-law partner’s name), and intended to become your principal residence within one year of purchase.

• Qualifying homes include single-family houses, semi-detached homes, townhomes, condo units, mobile homes, and certain co-operative housing shares that provide equity ownership.

• You are considered a first-time home buyer.
  For tax purposes, you are a first-time buyer if you (or your spouse/common-law partner) did not live in a home you owned during the year of purchase or in any of the four preceding calendar years. This is commonly referred to as the four-year rule and is based on both ownership and occupancy.

Special rule for buyers with disabilities.

The first-time requirement may not apply if you are eligible for the Disability Tax Credit or if you are purchasing a home for a related person with a disability. The home must be intended to better meet their needs and must become their principal residence.

How to Claim It

There is no separate application form.

When filing your tax return for the year you acquired the home, enter $10,000 on Line 31270. The credit is calculated automatically at 15%.

If more than one eligible person purchased the home, the claim can be split, but the total combined claim cannot exceed $10,000.

When Do You Claim It?

You claim the Home Buyers’ Amount in the tax year you acquired the property. If you bought in 2025, it is claimed on your 2025 return.

What Should You Keep on File?

You do not submit documentation with your return, but you should retain:

• Purchase agreement
• Statement of adjustments
• Proof of ownership registration
• Closing documents

Keep everything organized in case the CRA requests verification.

Quick Filing Checklist

• Confirm you did not live in a home you owned in the last four years
• Confirm the property is your principal residence
• Enter $10,000 on Line 31270
• Keep your purchase documents

Some Important Things to Know

Before you file, keep these details in mind.

This is a federal tax credit.
The Home Buyers’ Amount applies to federal income tax only. Some provinces offer additional programs, but this $10,000 claim (up to $1,500 credit) is federal.

You cannot carry it forward.
Because the credit is non-refundable, it can only reduce your federal tax to zero. Any unused portion does not carry forward to future years.

The four-year rule applies to your spouse too.
Even if you personally did not own a home, you may not qualify if your spouse or common-law partner owned and lived in a home during the year of purchase or any of the four preceding calendar years.

The acquisition date matters.
You claim the credit in the tax year you legally acquired the home — typically the possession or title transfer date, not the offer date.

You must intend to live in the home.
The property must become your principal residence within one year of purchase.

Buying a home is expensive. Legal fees, inspections, moving costs, and everything in between add up quickly. If you qualify, claiming this federal tax credit is straightforward.

File it properly. Don’t leave $1,500 sitting on the table.

Smart Homeownership Doesn’t Stop at Closing Day

Buying a home is one of the biggest financial moves most people will ever make. But the strategy doesn’t end when you get the keys. Understanding tax credits, rebates, and cost-saving opportunities is part of owning property intelligently.

I work with buyers not just to secure the right home, but to help them understand the full financial picture — from purchase to long-term planning. If you’ve recently bought, are preparing to buy, or want to position yourself strategically, let’s make sure you’re not leaving money on the table.

Dusko Sremac – Calgary & Area REALTOR® | Team Lead, REPYYC

Cell: 403-988-0033   |   Email: dusko@repyyc.com

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