First-Time Home Buyer Tax Credit: How much can you claim?
June 8, 2017|Updated: August 31, 2026
Buying your first home is a major milestone. Between saving for a down payment, navigating mortgages, and signing what feels like a mountain of paperwork, every dollar counts. The good news? The First-Time Home Buyers’ Tax Credit can help take some of the sting out of homeownership costs and put money back in your pocket when tax season rolls around.
If you've recently purchased your first home in Canada, you may be eligible to claim up to $10,000 through the Home Buyers’ Amount, which translates into a federal tax credit worth up to $1,400. Understanding how the credit works, who qualifies, and how to claim it can help you maximize your tax savings.
Table of contents:
What’s the First-Time Home Buyer Tax Credit?
The First-Time Home Buyers’ Tax Credit (HBTC), also known as the Home Buyers’ Amount, is a federal non-refundable tax credit designed to help eligible Canadians offset some of the costs associated with purchasing their first home. These costs can include legal fees, land transfer taxes, home inspections, and other expenses that often surprise new homeowners.
The credit was introduced to make homeownership more accessible and has become an important tax benefit for Canadians entering the housing market. In 2022, the maximum claim amount doubled from $5,000 to $10,000, providing greater tax relief for first-time buyers.
While the tax credit won't cover your entire moving truck bill or furnish your new living room, it can help reduce the amount of federal income tax you owe. And when you're adjusting to mortgage payments for the first time, every bit helps.
How much can you claim?
Here's the question every first-time buyer wants answered: How much is the First-Time Home Buyer Tax Credit worth?
Eligible taxpayers can claim up to $10,000 on their tax return under the Home Buyers’ Amount. Since this is a non-refundable federal tax credit, the actual tax savings are calculated using the federal lowest personal income tax rate which is 14% for the 2026 tax year. This translates into a tax credit worth up to $1,400.
Example:
Let's say you purchased your first home in 2026 and meet all eligibility requirements:
- Maximum Home Buyers' Amount: $10,000
- Federal tax credit rate: 14%
- Potential tax savings: $1,400
Think of the First-Time Home Buyers' Tax Credit as a discount on your tax bill. It can lower the amount of federal income tax you owe to the Canada Revenue Agency (CRA), up to a maximum value of $1,400. However, because it's a non-refundable tax credit, it can't lower your tax bill below $0 or generate an additional refund if you don't owe enough tax to use the full credit.
Can you split the credit?
Yes. If you purchased your home with another person, including a spouse or common-law partner and both of you qualify, you can split the $10,000 Home Buyers' Amount between you in any proportion. But the combined total claim can’t exceed $10,000.
For example:
- Buyer A claims $6,000
- Buyer B claims $4,000
Total claim: $10,000
In many cases, splitting the claim won't change the overall value of the credit for your household. However, it may make sense to split it if both partners have enough taxable income and want to share the tax savings. Some couples also choose to have one person claim the full amount for simplicity. The best approach depends on your individual tax situation, so it's worth reviewing both options with your H&R Block Tax Expert.
Who qualifies for the First-Time Home Buyer Tax Credit?
The eligibility rules are relatively straightforward, but they're worth reviewing carefully.
Generally, you can claim the Home Buyers’ Amount if:
1. You purchased a qualifying home.
You or your spouse/common-law partner must have acquired a qualifying home located in Canada and registered under the applicable land registration system. Not sure what counts as a qualifying home? Keep reading. We'll break down eligible property types and requirements in more detail below.
2. You're considered a First-Time Home Buyer.
For tax purposes, a first-time home buyer is someone who didn’t own and live in another home, either in Canada or elsewhere, during:
- The year you acquired the home, or
- Any of the four preceding calendar years.
This means even if you owned a property 15 years ago, you may still qualify if you've been renting and haven’t owned a principal residence during the relevant four-year period.
3. You intend to live in the home.
You must occupy the home as your principal place of residence within one year of acquiring it.
Exception for persons with disabilities.
The first-time home buyer requirement may not apply if:
- You're eligible for the Disability Tax Credit (DTC), or
- You purchased the home for a related person who qualifies for the DTC.
What’s considered a qualifying home?
Many people assume the First-Time Home Buyer Tax Credit only applies to detached houses. Thankfully, the CRA takes a much broader view.
Qualifying homes can include:
- Single-family homes
- Semi-detached homes
- Townhouses
- Condominiums
- Mobile homes
- Apartments in duplexes, triplexes, fourplexes, or apartment buildings
- Certain cooperative housing shares
- Newly constructed homes
- Existing resale homes
The key requirements are that the property is in Canada and is registered in your name or your spouse or common-law partner's name.
So, whether you bought a downtown condo, a suburban townhouse, or your dream detached home with a backyard for the dog, you may still qualify.
How to claim the Home Buyers’ Amount on your tax return.
Claiming the First-Time Home Buyer Tax Credit doesn't have to be complicated. Whether you file with an H&R Block Tax Expert or use H&R Block Tax Software, we'll help make sure you're claiming the credits and deductions you're eligible for.
Filing with an H&R Block Tax Expert.
If you're working with an H&R Block Tax Expert, let them know you purchased a home during the tax year. They'll review your situation, determine whether you qualify for the Home Buyers' Amount, and make sure the credit is properly claimed on your return. The Home Buyers' Amount is claimed on Line 31270 of your federal tax return.
To help support your claim, bring any documents related to your home purchase, including:
- Purchase and sale agreement
- Property closing documents
- Land registration or title documents
- Any records that help confirm your eligibility as a first-time home buyer
Even if these documents aren't submitted with your tax return, it's a good idea to keep them with your tax records in case the CRA asks for them later.
Filing with H&R Block Tax Software.
If you're filing on your own using H&R Block Tax Software, simply indicate that you purchased a home during the tax year when prompted. The software will guide you through the questions needed to determine your eligibility and calculate the Home Buyers' Amount for you.
Before you start, have your home purchase documents handy so you can easily answer any questions about your purchase and retain your records for future reference. If you're filing with a spouse or common-law partner, you'll also want to coordinate how the claim will be divided to ensure the total amount claimed doesn’t exceed the maximum $10,000 allowed.
If you're unsure whether you qualify or how much you can claim, an H&R Block Tax Expert can help you understand your options and maximize your eligible tax savings.
Other tax benefits for first-time home buyers.
The First-Time Home Buyer Tax Credit is only one piece of the puzzle. Several government programs can help make homeownership more affordable.
First Home Savings Account (FHSA).
The FHSA combines some of the best features of an RRSP and a TFSA.
Eligible Canadians can:
- Contribute up to $8,000 annually.
- Contribute up to $40,000 over their lifetime.
- Receive tax deductions on contributions.
- Make tax-free withdrawals for a qualifying home purchase.
Check out this article to learn more about FHSAs: How to maximize your First Home Savings Account (FHSA) tax deduction.
Home Buyers' Plan (HBP).
The Home Buyers' Plan lets eligible first-time home buyers withdraw money from their Registered Retirement Savings Plan (RRSP) to help purchase or build a home without being taxed on the withdrawal at the time, as long as they repay the funds according to the program's rules.
Eligible individuals can withdraw up to $60,000 from their RRSPs through the HBP. The funds must be repaid over time, so it's important to understand the repayment requirements before making a withdrawal.
This can be a valuable way to boost your down payment or help cover other home-buying costs while avoiding the immediate tax bill that would normally apply to an RRSP withdrawal.
Provincial homeownership programs.
Depending on where you live, you may also qualify for provincial incentives such as:
- Land transfer tax rebates
- Property transfer tax exemptions
- Provincial first-time home buyer credits
These programs vary by province, territory, and individual circumstances, so it's worth exploring what may be available where you live alongside federal home ownership benefits.
Not sure which programs apply to you? An H&R Block Tax Expert in your area can help identify provincial credits, rebates, and other tax-saving opportunities you may be eligible for, ensuring you don't miss out on potential savings when filing your return.
Frequently asked questions.
Need help claiming the Home Buyers' Amount?
An H&R Block Tax Expert can help determine your eligibility, maximize your available credits, and ensure your return is filed accurately.