First-Time Home Buyers' Tax Credit (HBTC)

The First-Time Home Buyers' Tax Credit (HBTC) is a non-refundable tax credit that is available to eligible first-time home buyers in Canada. This tax credit is intended to help offset some of the costs associated with purchasing a home, such as legal fees, land transfer taxes, and other expenses.

To qualify for the HBTC, you must meet certain criteria, including:

If you meet these criteria, you may be eligible for a non-refundable tax credit of up to $750. The credit can be applied to offset federal income tax owed for the tax year in which the home was purchased. If the credit exceeds the amount of federal tax owed, the unused portion of the credit cannot be carried forward to future years, nor can it be refunded.

What is changing? For the 2022 and subsequent taxation years, the Budget proposes to increase the amount used to calculate the HBTC to $10,000, which would provide a tax credit of up to $1,500 to eligible home buyers.

It's important to note that the HBTC is a non-refundable tax credit, which means it can only be used to reduce the amount of tax owed and cannot be refunded. Use line 31270 on your T1 return to claim the HBTC.

Read more at - https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2022-plan-grow-economy-make-life-more-affordable/first-time-home-buyers-tax-credit.html

Have questions on your eligibility or if the credit can be claimed? Want to know more on how to file and claim in general?

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Disclaimer: This article only provides general information which is not construed as professional advice. Readers seeking professional advice must consult an experienced and a qualified professional in the respective field.