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Home Buyers Amount Tax Credit Calculator Canada

Free Canada Home Buyers Amount calculator. First-time buyers claim $10,000 for a $1,500 federal tax credit. Ontario adds a $1,750 provincial credit. See your total savings.

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Written by PennyCompass Team

Calculate your federal and provincial Home Buyers Amount tax credit.

Total Home Buyers tax credit

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Federal credit (15% x $10,000)

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Ontario provincial credit

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Qualifying status

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Your breakdown

Updates live as you type
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The $10,000 Home Buyers Amount: how a deduction becomes a credit

The federal Home Buyers Amount allows a first-time buyer to claim $10,000 on line 31270 of their T1 tax return for the year they purchased a qualifying home. The $10,000 is not deducted directly from income. Instead it is multiplied by the 15 percent lowest federal tax rate to produce a non-refundable credit of $1,500. The distinction matters: a $1,500 credit directly reduces your federal tax payable dollar for dollar, whereas a $10,000 deduction from income would reduce tax by $1,500 only for those in the 15 percent bracket, and more for those in higher brackets. The credit mechanism means every eligible first-time buyer gets exactly $1,500 of federal tax relief, regardless of income level, as long as they owe at least that much in federal tax.

Ontario adds another $1,750 on top of the federal credit

Ontario first-time buyers benefit from a stacked credit system. The provincial First Time Home Buyers Credit mirrors the federal structure: a $10,000 claim at the Ontario first marginal rate of 17.5 percent gives a $1,750 provincial credit. Combined with the $1,500 federal credit, an eligible Ontario resident purchasing their first home receives $3,250 in combined federal and provincial tax credits. This credit applies in the year of purchase and must be claimed on the Ontario portion of the T1 return. Other provinces also offer similar credits, so check your province-specific rules. British Columbia, for example, offers a Property Transfer Tax exemption rather than an income tax credit.

Stacking Home Buyers Amount with other first-time buyer benefits

The Home Buyers Amount is just one of several tax benefits available to Canadian first-time buyers. The Home Buyers Plan allows a withdrawal of up to $35,000 from your RRSP tax-free for a first home purchase, repayable over 15 years. The First Home Savings Account (FHSA) allows up to $8,000 per year in tax-deductible contributions with a $40,000 lifetime limit, and qualifying withdrawals for a first home are tax-free. Ontario first-time buyers can also claim a Land Transfer Tax refund of up to $4,000. Combining the FHSA tax deduction, the Home Buyers Plan RRSP withdrawal, the LTT rebate, and the Home Buyers Amount gives a first-time Ontario buyer a total potential tax benefit in the tens of thousands of dollars in the year of purchase.

Frequently asked questions

Who qualifies for the federal Home Buyers Amount?
To claim the federal Home Buyers Amount, you must have purchased a qualifying home in Canada during the tax year and neither you nor your spouse or common-law partner can have owned and lived in another home in the current year or any of the preceding four calendar years. The home must be registered in your name (or your spouse or common-law partner name) and be your intended principal residence. Persons with disabilities who purchase a home to be more accessible may also qualify even if the first-time buyer condition is not met.
Is the Home Buyers Amount refundable?
No. The Home Buyers Amount is a non-refundable tax credit. It reduces the federal income tax you owe but cannot create a refund beyond zero. If your federal tax owing is less than $1,500 the credit can only reduce your tax to zero. You cannot carry forward any unused portion of the credit to future years. To get the full $1,500 benefit you need at least $1,500 in federal income tax payable for the year of purchase.
Can both spouses claim the Home Buyers Amount?
The Home Buyers Amount is based on a $10,000 limit per qualifying home purchase, not per person. The $10,000 can be split between eligible spouses and common-law partners in any combination as long as the total claimed does not exceed $10,000. If one spouse has more federal tax to reduce, it makes sense to allocate more of the claim to that spouse to maximize the credit value. Each spouse claims their portion on line 31270 of their individual T1 return.
Does Ontario offer a similar provincial credit?
Yes. Ontario first-time home buyers can claim the Ontario First Time Home Buyers Credit, which provides a provincial tax credit of up to $1,750. This uses the same basic eligibility rules as the federal credit. The Ontario credit is based on a $10,000 claim at the Ontario 17.5 percent provincial rate. Like the federal credit it is non-refundable, meaning it reduces Ontario tax payable to a minimum of zero. Combined with the $1,500 federal credit, an eligible Ontario buyer can reduce their total tax bill by up to $3,250 in the year of purchase.

Related calculators

Ontario LTT Refund

Up to $4,000 LTT rebate.

BC Property Transfer Tax

BC PTT and exemptions.

Home Buyers Plan

RRSP withdrawal for down payment.

FHSA

First home savings account.

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