$7500 Renovation Refund + $200 Monthly Disability Benefit, Check Eligibility and Payment Dates

If you’re planning to renovate your home for a loved one or live with a disability yourself, June 2025 brings significant financial support your way.

The Canadian government has introduced two key programs to help reduce living costs and promote accessibility:

• The $7,500 Multigenerational Home Renovation Tax Credit (MHRTC)
• The $200 monthly Canada Disability Benefit (CDB)

Whether you’re a homeowner building a suite for an aging parent or a person approved under the Disability Tax Credit (DTC), these new supports offer real relief. Here’s everything you need to know—from eligibility and application to timelines and tax filing.

Overview: Two New Federal Supports in 2025

These two programs work hand in hand to provide financial help for multigenerational households and individuals with disabilities.

Program	Target Group	Amount	How to Claim
MHRTC	Homeowners adding suites for seniors or DTC adults	Up to $7,500 (15% of $50,000)	Claim with 2025 tax return via Schedule 12
CDB	Adults aged 18–64 with DTC status	Up to $200/month ($2,400/year)	Apply via CRA My Account or mail

Together, they support both long-term home modifications and ongoing daily expenses for Canadians with disabilities.

Why These Programs Matter

Multigenerational living is growing across Canada. It lowers housing costs, provides care for aging family members, and keeps families connected. The MHRTC helps fund renovations to accommodate seniors or adults with disabilities, while the CDB offers stable monthly income to manage daily expenses like medication, groceries, and transportation.

Multigenerational Home Renovation Tax Credit (MHRTC)

The MHRTC provides a refundable tax credit of up to $7,500 for homeowners who build or renovate a secondary suite in their home for an eligible family member.

Who Qualifies?

You are eligible if:

• You own and live in the home
• Renovations occur in 2025
• The suite is for:
• A senior aged 65 or older, or
• An adult approved for the Disability Tax Credit (DTC)
• The suite includes:
• A separate entrance
• A bedroom, bathroom, and kitchen
• The suite meets local zoning and building codes

How to Claim the MHRTC

• Keep receipts, permits, invoices, and before/after photos
• File your 2025 income tax return
• Complete Schedule 12
• Enter the claim on line 45355 of your tax return

Note: Only one MHRTC claim is allowed per eligible person per lifetime, even across different homes.

Canada Disability Benefit (CDB)

The CDB provides up to $200 per month for adults aged 18 to 64 who are approved for the Disability Tax Credit. It’s a new, tax-free income supplement aimed at easing the cost of living for Canadians with disabilities.

Key Application Dates:

• Apply between June 20 and December 31, 2025
• First payments begin in July 2025 (for those approved by June 30)
• Retroactive payments may go back up to 24 months, even for those now over age 65

How the CDB Is Calculated

The CDB is income-tested, but many will still qualify for partial benefits.

Income Exemptions:

• Singles: First $23,000 of income is exempt
• Couples: First $32,500 is exempt
• Working income exclusion:
• $10,000 (single)
• $14,000 (couple)

Example:

Dan, a single adult earning $35,000 and approved for the DTC:

• Subtract $10,000 (working income) → $25,000
• Subtract $23,000 exemption → $2,000 excess
• Reduction = 20% of $2,000 = $400/year
• Final benefit = $2,000 annually → $166/month

How to Apply for the Canada Disability Benefit

1. Apply for the Disability Tax Credit (DTC)

• Fill out Form T2201
• Have your doctor or specialist complete their section
• Submit via CRA My Account or mail

2. Complete CDB Application

Once DTC is approved, you’ll receive a CRA application code to enroll in the Canada Disability Benefit online.

Planning a Renovation Under MHRTC

If you’re renovating your home for multigenerational living, here’s how to prepare:

Step 1: Get Contractor Quotes

• Get multiple estimates
• Plan for accessibility features like grab bars, ramps, or wider doors

Step 2: Budget Properly

• Renovations may cost up to $50,000
• Add 10–15% for contingencies
• Consider HELOCs, loans, or provincial grants to cover up-front costs

Step 3: Secure Building Permits

• Apply through your local municipality
• Ensure you meet zoning laws and building codes

Step 4: Track All Expenses

• Save every invoice, receipt, and permit
• Use a spreadsheet or finance app to manage costs

Step 5: File Taxes in 2026

• Complete Schedule 12 with your 2025 tax return
• Keep documentation in case of CRA review

How Payments Are Received

• MHRTC refund will arrive in spring 2026 with your tax refund
• CDB payments start monthly in July 2025 for eligible applicants

How to Maximize Your Savings

You can combine the MHRTC and CDB with other federal or provincial programs:

Federal Credits:

• Home Accessibility Tax Credit (HATC)
• Medical Expense Tax Credit
• Canada Caregiver Credit

Provincial Programs:

• British Columbia: Up to $1,000 renovation credit
• Ontario: Credits for accessibility and transit
• Quebec: Adaptation grants through social services

Tip: Use a certified tax professional to ensure you’re stacking all eligible credits without overlap.

Real-World Example

The Patel family in Ottawa upgraded their garage into a secondary suite in 2025 for Anjali’s 70-year-old mother. They spent $48,000, claimed:

• $7,200 under the MHRTC
• $1,500 via the Home Accessibility Tax Credit (HATC)
• Their adult son, approved for the DTC, received $200/month starting in July

By year’s end, they received $8,700 in tax credits and direct payments, making their investment both affordable and impactful.

FAQs

Q1. Who qualifies for the $7,500 MHRTC?
Homeowners who build or renovate suites for seniors or adults approved under the DTC.

Q2. When does the Canada Disability Benefit start?
Monthly payments begin in July 2025 for those approved by June 30, 2025.

Q3. How much is the CDB?
Up to $200 per month, depending on income and working income exemptions.

Q4. Can I combine MHRTC with other credits?
Yes. You can stack MHRTC with credits like HATC, the Medical Expense Credit, and provincial support programs.

Q5. How do I apply for the Disability Benefit?
Apply for the DTC first using Form T2201, then use CRA My Account to enroll in the CDB.