TaxTips.ca - Ontario Refundable Seniors Home Safety Tax Credit (2024)

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Ontario Taxation Act, 2007, s. 103.0.3

This refundable tax credit was initially intended to be for the 2021 taxation year, and was introduced by the Ontario 2020 Budget. The 2021 Ontario Economic Outlook and Fiscal Review extended this credit by one year to 2022. This extension was included in Bill 43.

The intention of the credit is to support seniors who stay in their homes, by providing a tax credit for renovations or improvements that make their homes safer and more accessible.

Eligibility

	not dependent on income
	can be claimed for eligible expenses by senior homeowners, senior renters, or people who live with senior relatives, and are their "qualifying relation" as described in s. 251(6) or 252(2) of the Federal Income Tax Act. s. 251(6) would include individuals connected by blood relationship, marriage or common-law partnership or adoption. Blood relationships do not normally include aunts, uncles, nieces, nephews, or cousins. However, see 252(2) s. 252(2) includes non-blood relationships, including aunts, uncles, great-aunts, great-uncles, nieces and nephews, as well as those of the spouse or common-law partner. See Canada Revenue Agency S1-F4-C2, paragraphs 2.6-2.15.
	the senior must be age 65+ at the end of the taxation year in which

Qualifying Expenditures

Expenses which are paid, or become payable, in 2021 will be eligible, to the extent that they are for renovations that improve safety and accessibility, or enable a senior to be more functional or more mobile at home.

A qualifying expenditure is deemed to have been paid on the earlier of the date on which the expenditure was paid and the date it became payable. Thus, if the amount became payable in 2020 but is not paid until 2021, it will not qualify.

Examples:

	renovations that permit a first-floor occupancy or secondary suite for a senior
	grab bars and related reinforcements around the toilet, tub and shower
	non-slip flooring
	additional light fixtures throughout the home and exterior entrances
	automatic garage door openers
	modular or removable versions of a permanent fixture, such as modular ramps and non-fixed bath lifts

Certain expenditures are not qualifying expenditures, such as

	annual, recurring or routine repairs, maintenance or services
	household appliances
	electronic home-entertainment devices
	financing costs in respect of the qualifying expenditures
	costs incurred for the purposes of gaining or producing income from a business or property
	cost of goods or services provided by a person not dealing at arm's length with the individual, unless the person is registered to collect GST/HST

Tax Credit

	25% of up to maximum $10,000 in eligible expenses for a senior's principal residence in Ontario, resulting in maximum $2,500 credit.
	Maximum can be shared by the people who share a home, including spouses and common-law partners.
	The expenses paid are reduced to the extent that they are reimbursed, or are expected to be reimbursed, by a municipal, provincial or federal government.

The credit can be claimed if the improvement was made to the senior'sprincipal residence or to a residence reasonably expected to become theprincipal residence of the senior within the 24 months after the end of 2021.

The credit could also be claimed for an individual's share of improvementsdone by a condominium corporation or similar body, to property that includes thesenior's principal residence, provided the improvement meets the eligibilityconditions.

Government of Ontario Resources

Seniors'Home Safety Tax Credit

Revised: October 26, 2023