In 2025, two impactful federal programs are helping Canadians—one aids families creating accessible living spaces, and the other provides monthly support for adults with disabilities.
The $7,500 Multigenerational Home Renovation Tax Credit (MHRTC) and the Canada Disability Benefit (CDB) are designed to improve quality of life and reduce financial stress for thousands.
Quick Overview of Both Benefits
| Program | Purpose | Value | Key Details |
|---|---|---|---|
| MHRTC | Build or renovate a secondary unit for a senior or DTC-approved adult | 15% of up to $50,000 → $7,500 max | File with 2025 tax return (line 45355) |
| CDB | Monthly support for working-age adults with disability | $200/month → $2,400/year max | Starts June 2025; payments from July; backdated up to 24 months |
Multigenerational Home Renovation Tax Credit (MHRTC)
- What It Is: A refundable tax credit that reimburses 15% of qualifying renovation expenses, up to $50,000, for a maximum of $7,500 per eligible claim.
- Eligibility Criteria:
- Renovation must create a self-contained secondary unit with private entrance, kitchen, bathroom, and sleeping area.
- Designed for a senior (65+) or an adult eligible for Disability Tax Credit (DTC).
- Only one claim per eligible person in a lifetime.
- How to Claim:
- Complete renovations in 2025.
- Keep receipts, permits, and documentation.
- File Schedule 12 (line 45355) on your 2025 tax return.
Canada Disability Benefit (CDB)
- Program Overview: Launched in 2025, the CDB provides up to $200 per month, or $2,400 annually, to low-income Canadians aged 18–64 with a Disability Tax Credit designation.
- Key Details:
- Applications open from June 20, 2025.
- Payments begin in July for approvals by June 30, including retroactive coverage up to 24 months.
- Income Testing: Amounts are adjusted based on household income; full benefit available to those below a set threshold; tapers off at higher income levels.
- Payment Schedule: Released on the third Thursday of each month starting July, with retroactive lump-sum payments if applicable.
Why These Benefits Matter
- MHRTC helps families build safe, accessible housing for vulnerable relatives—fostering independence while strengthening households.
- CDB offers reliable, non-taxable income support that helps stabilize finances for working-age adults with disabilities.
- Together, they reflect the government’s commitment to both immediate financial support and longer-term family resilience.
In 2025, the MHRTC and Canada Disability Benefit offer two powerful, yet distinct financial lifelines to Canadians. Whether constructing a multi-generational suite or covering daily living expenses, these programs enhance independence and affordability.
Be proactive—plan your renovation, maintain proper documentation, apply early for CDB, and ensure you’re maximizing these vital supports.
