Home Renovation Tax Credits & Rebates Available to Ontario Homeowners

1. Home Renovation Savings Program

One of the most useful current programs for Ontario homeowners is the Home Renovation Savings Program, delivered through Save on Energy and Enbridge Gas with support from the Ontario government. It provides rebates for energy-efficiency improvements and is available to homeowners with different heating sources, subject to program conditions.

Current incentives include:

• ✓Up to $7,700 for insulation
• ✓$100 per rough opening for eligible windows and doors
• ✓Up to $250 for air sealing
• ✓$600 back for an eligible home energy assessment
• ✓Up to $7,500 for a qualifying cold-climate air-source heat pump
• ✓Up to $12,000 for a qualifying ground-source heat pump
• ✓$500 for eligible heat-pump water heaters
• ✓$100 for eligible smart thermostats
• ✓Up to $10,000 for solar panels and battery storage
• ✓Up to $200 for qualifying energy-efficient appliances

The program offers both bundled and single-upgrade options. Homeowners can start with an energy assessment and complete multiple qualifying upgrades, or in some cases skip the assessment and apply for rebates on eligible individual improvements.

This makes the program particularly relevant when a renovation includes insulation, windows, HVAC equipment, or other energy-related improvements.

2. Home Accessibility Tax Credit

Homeowners renovating to improve accessibility may qualify for the federal Home Accessibility Tax Credit (HATC). This is a non-refundable tax credit for eligible renovation or alteration expenses that improve accessibility, mobility, functionality, or safety within an eligible dwelling.

Eligible individuals generally include people who are eligible for the Disability Tax Credit and people aged 65 or older. Certain family members may also claim eligible expenses on behalf of a qualifying individual.

Examples of potentially eligible improvements can include:

• ✓Walk-in or wheelchair-accessible showers
• ✓Grab bars and accessibility fixtures
• ✓Widening doorways
• ✓Installing ramps
• ✓Lowering certain fixtures
• ✓Changes that improve mobility within the home
• ✓Other modifications that reduce the risk of injury

The HATC can apply to up to $20,000 of eligible expenses per year, producing a maximum federal credit of $3,000 at the applicable 15% rate. If accessibility is part of your home renovation in Oakville, keep detailed invoices and receipts and make sure the work meets the CRA's definition of an eligible renovation.

3. Multigenerational Home Renovation Tax Credit

Families creating additional living space for an older parent or an adult with a disability should also examine the Multigenerational Home Renovation Tax Credit (MHRTC).

This is a refundable federal tax credit, meaning an eligible homeowner can receive a refund even if the credit exceeds their federal tax payable. The credit applies when qualifying renovations create a self-contained secondary unit for a senior or an adult who qualifies for the Disability Tax Credit.

A qualifying secondary unit must generally contain its own:

• ✓Private entrance
• ✓Kitchen
• ✓Bathroom
• ✓Sleeping area

The unit must also meet applicable local requirements, permits, codes, and bylaws. You can claim up to $50,000 in qualifying renovation expenses, with the current credit calculated at 14.5%, for a maximum of $7,250 per qualifying renovation.

Importantly, the renovation must be completed in the tax year in which you claim it. You must support expenses with appropriate invoices and proof of payment.

4. Ontario Enhanced New Housing Rebate

A major 2026 change is the Ontario Enhanced New Housing Rebate (ENHR). Although it is primarily associated with new housing, it can also apply to certain substantially renovated homes.

For owner-built homes, construction or substantial renovation must begin between April 1, 2026, and March 31, 2027, and the home's fair market value when substantially completed must be below $1.85 million. The work must also be substantially completed by the applicable deadline.

The combined Ontario new housing rebate and enhanced rebate can provide relief of up to $80,000 of the 8% provincial portion of HST for qualifying homes.

However, this is not intended for ordinary kitchen, bathroom, basement, or cosmetic remodeling. Under CRA rules, a substantial renovation generally requires approximately 90% or more of the interior of the existing home to be removed or replaced, subject to the specific rules.

5. Programs for Lower-Income Ontario Households

Homeowners with lower household incomes should also check the Energy Affordability Program. This is different from a conventional renovation rebate because eligible households can receive energy-saving upgrades and equipment at little or no cost, depending on their circumstances.

Potential assistance can include insulation, draft-proofing, smart thermostats, efficient appliances, and certain cold-climate heat pumps. Eligibility can depend on household income, participation in qualifying assistance programs, housing status, and the home's existing systems.

What About the Canada Greener Homes Grant?

This is an important point because many older renovation articles still list the Canada Greener Homes Grant as an available option.

It is closed to new applicants. The federal government states that December 31, 2025, was the final deadline for existing participants to submit their required documentation. The associated Canada Greener Homes Loan is also closed to new applications.

Therefore, homeowners planning a renovation in 2026 should not include the former Greener Homes Grant in their renovation budget unless they are completing an existing eligible application.

How to Maximize Your Renovation Savings

Before starting home renovation in Oakville, identify every component of the project that could qualify for assistance. A renovation may contain several different types of work, and one program may apply to insulation while another applies to accessibility improvements or a qualifying secondary suite.

Start by:

• ✓Defining the renovation scope before purchasing materials.
• ✓Checking current eligibility requirements for every relevant program.
• ✓Determining whether pre-approval or an energy assessment is required.
• ✓Keeping itemized invoices, receipts, permits, contracts, and proof of payment.
• ✓Confirming equipment eligibility before purchasing it, particularly for energy-efficiency rebates.
• ✓Separating eligible and ineligible expenses on contractor invoices where possible.
• ✓Checking municipal permits and requirements, especially for secondary suites and structural alterations.
• ✓Reviewing deadlines carefully, since some programs depend on when construction starts, when an application is submitted, or when the renovation is completed.

Plan the Renovation Around the Incentive, Not After It

Government incentives can reduce renovation costs, but they should not determine the project by themselves. The smartest approach is to establish the renovation you actually need, then identify which portions qualify for rebates or tax credits.

For major home renovation, homeowners should also confirm the current rules directly with the CRA, Ontario government, or program administrator before committing funds. A rebate that looks attractive on paper may have technical requirements involving equipment specifications, project timing, contractor documentation, primary residence status, income, or the extent of the renovation.

With proper planning and documentation, eligible Ontario homeowners can potentially recover thousands of dollars through a combination of energy rebates and federal tax credits while making their homes more comfortable, accessible, and efficient.