Home Buyers Tax Credit (HBTC) Calculator

The Home Buyers Tax Credit in 2026 — A $1,500.00 Federal Credit for Eligible Home Buyers

The Home Buyers’ Tax Credit (HBTC) is a non-refundable federal tax credit that delivers up to $1,500.00 of tax relief in the year you purchase a qualifying home. The credit equals 15% of a $10,000 amount, regardless of the home’s purchase price — small condo or large detached, the credit is the same. Created in 2009 at $750 and doubled to $1,500.00 in 2022, the HBTC remains one of the easiest first-time buyer incentives to claim. There is no application process: simply enter the amount on Line 31270 of your federal return for the year of purchase. The CRA does not require receipts upfront, but you should keep purchase documents (closing statement, deed, statement of adjustments) in case of audit.

Two paths to eligibility exist. The first-time buyer path requires that neither you nor your spouse / common-law partner owned and occupied another home in the current year or any of the four preceding calendar years — a 5-year look-back including the purchase year. This is more generous than it sounds: someone who sold their previous home five years ago can qualify again. The disability path waives the first-time buyer requirement entirely: if you (or a related person) is eligible for the Disability Tax Credit (DTC) and the new home is more accessible or better suits the disabled person’s needs, the HBTC is available even if you owned a home last year. This DTC route is widely under-used because many buyers do not realize it removes the first-time requirement.

HBTC Claim Scenarios

The split decision matters because the HBTC is non-refundable — any unused portion is lost. If one spouse has very low taxable income and cannot absorb the full $1,500.00, the smart move is for the higher-income spouse to claim the entire credit. Conversely, if both spouses have plenty of tax payable, splitting 50/50 keeps things tidy and the result is the same. The HBTC stacks with other home buyer programs: the FHSA (First Home Savings Account, $40,000 lifetime), the Home Buyers’ Plan (HBP, $60,000 RRSP withdrawal), provincial land transfer tax rebates (Ontario up to $4,000, Toronto up to $4,475, BC full exemption under $500,000, PEI full exemption), and the GST/HST New Housing Rebate on new builds. Even alone, the $1,500.00 credit covers a meaningful share of legal fees or moving costs and is worth the 30 seconds it takes to enter on Line 31270.