How to Claim the First-Time Home Buyer Tax Credit in Canada

Buying your first home is exciting, but it can also drain your account fast. Between the down payment, legal fees, moving costs, a home inspection, and furniture that suddenly feels non-negotiable, every dollar helps. The first-time home buyer tax credit is one small way the federal government can lower your tax bill after you buy a qualifying home in Canada.

If you are a student, new grad, or early in your career, this credit is worth knowing before tax season—not after. It will not cover your closing costs, but it can reduce the federal income tax you owe by up to $1,500. The best part is that you claim it yourself on the tax return for the year you buy your home. You do not need to apply for a separate government payment or wait for the CRA to send you a form.

Quick answer: You can claim the first-time home buyer tax credit in Canada by entering up to $10,000 on line 31270 of your tax return for the year you buy a qualifying home. The credit is worth 15% of your claim, so it can reduce your federal tax payable by up to $1,500 if you meet the first-time buyer rules.

How does the first-time home buyer tax credit work in Canada?

The first-time home buyer tax credit is a federal non-refundable tax credit that can cut your income tax by up to $1,500 when you buy an eligible home. Officially called the Home Buyers’ Amount, it lets an eligible buyer claim up to $10,000 on their personal tax return. Since the federal tax credit rate is 15%, a $10,000 claim creates a maximum tax reduction of $1,500.

“Non-refundable” is the important part. It means the credit can reduce the federal income tax you owe to $0, but it generally will not create an extra refund beyond the tax you paid or owe. For example, if your federal tax owing is $900, the credit may reduce it to $0, but you do not receive the unused $600 difference as cash.

This is also a tax credit, not a deduction. A deduction lowers the income you are taxed on, while a credit directly lowers your tax payable. If you are still learning how tax credits affect your refund, start with the basic personal amount in Canada, another credit most Canadians can claim.

You claim the Home Buyers’ Amount only once per qualifying home purchase year. It is separate from provincial first-time buyer programs, land-transfer-tax rebates, the First Home Savings Account (FHSA), and the RRSP Home Buyers’ Plan.

Who qualifies for the first-time home buyer tax credit?

You qualify for the first-time home buyer tax credit if you buy a qualifying home in Canada and meet the CRA’s first-time home buyer test. In most cases, you must not have lived in a home that you owned—or that your spouse or common-law partner owned—during the current calendar year or any of the four preceding calendar years.

For a 2026 home purchase, that means you generally cannot have lived in an owned home at any point from 2022 through 2026. Renting an apartment, living with parents, or living in student housing does not stop you from qualifying. Owning a rental property that you did not live in may also be different from owning and occupying your principal home, so check the CRA rules or ask a tax professional if your situation is unusual.

A qualifying home can include a house, condo, townhouse, mobile home, or certain co-op housing shares. It must be located in Canada and registered in your name or your spouse or common-law partner’s name. You must also intend to occupy it as your principal place of residence within one year of buying or building it.

There is an exception for people eligible for the disability tax credit. A person with a disability may be able to claim the credit without meeting the usual first-time buyer rule when the home is bought to make it more accessible or better suited to their needs.

Quick tip: Before filing, save your purchase agreement, statement of adjustments, closing documents, and proof of occupancy in one digital folder. You usually do not send them with your return, but the CRA can ask to see them later.

How do you claim the first-time home buyer tax credit on your tax return?

You claim the first-time home buyer tax credit by entering your eligible amount on line 31270, “Home buyers’ amount,” of the federal tax return for the year you bought the home. If you use tax software such as Wealthsimple Tax, TurboTax, or H&R Block Online, search for “home buyers’ amount” or answer the home purchase questions in the credits section. The software should place the amount on the correct line.

You can claim up to $10,000, but your household cannot double-count the full amount. If you bought the home with a spouse or common-law partner, you can split the $10,000 claim between you in any way that makes sense, as long as your combined claims do not exceed $10,000. One person could claim all $10,000, or you could each claim $5,000.

The best split depends on whether each person has federal tax payable. Because the credit is non-refundable, it is often more useful for the partner who has enough tax owing to use it. If one partner earned little while finishing school and owes no federal tax, giving them part of the claim may not help this year.

You do not need to submit receipts just to claim line 31270. Still, keep your records for at least six years after the tax year, as the CRA can review your return. Setting up CRA My Account makes it easier to track notices, tax documents, and reassessments.

How can you combine the credit with an FHSA or RRSP home withdrawal?

You can use the first-time home buyer tax credit alongside an FHSA and the RRSP Home Buyers’ Plan, provided you meet each program’s separate rules. These programs are designed differently, so using one does not automatically disqualify you from another.

An FHSA is a registered account for saving toward a first home. You can generally contribute up to $8,000 per year, with a lifetime contribution limit of $40,000, and qualifying withdrawals are tax-free. Your FHSA contribution can also create a tax deduction, which may lower your taxable income. Many people hold FHSA savings in cash or a high-interest savings product at a provider such as EQ Bank, Wealthsimple, or Questrade while their purchase date is close.

The RRSP Home Buyers’ Plan lets eligible first-time buyers withdraw up to $60,000 from their RRSP tax-free to buy or build a home. Unlike an FHSA withdrawal, you generally need to repay your Home Buyers’ Plan withdrawals over time. Read more about withdrawing from an RRSP before retirement before moving money, since ordinary RRSP withdrawals have very different tax consequences.

The $1,500 Home Buyers’ Amount will not transform an unaffordable purchase into an affordable one. Build it into a full home-buying budget that includes closing costs, which can be several thousand dollars beyond your down payment.

What mistakes should first-time buyers avoid when claiming the credit?

The biggest mistake is assuming “first-time buyer” simply means you have never owned property before. The CRA test is mainly about whether you lived in a home you or your spouse or common-law partner owned during the relevant four-year period. If you previously co-owned and lived in a condo with a partner, you may not qualify right away even if this is your first solo purchase.

Another common mistake is treating the $1,500 as a guaranteed cash refund. The credit lowers federal tax payable, so you need enough tax payable for the full amount to benefit you. Check your tax software result before deciding how to split the claim with a partner.

Finally, do not overlook the timing. Claim the credit on the return for the calendar year you acquired the home, even if you moved in near year-end. Keep your closing date and supporting documents handy, and make sure you actually intend to make the property your main home within one year.

Frequently Asked Questions

How much is the first-time home buyer tax credit in Canada?

The first-time home buyer tax credit can reduce your federal income tax by up to $1,500. You claim up to $10,000 on line 31270 of your tax return, and the federal credit is calculated at 15%. Because it is non-refundable, you need enough federal tax payable to use the full credit.

Can both spouses claim the first-time home buyer tax credit?

Yes, spouses or common-law partners can split the first-time home buyer tax credit. Your combined claim cannot be more than $10,000, which equals a maximum combined federal tax reduction of $1,500. You can divide it in any proportion, including having one partner claim the entire amount.

What line is the first-time home buyer tax credit on?

The first-time home buyer tax credit is claimed on line 31270, called the Home buyers’ amount, of the federal income tax return. Most Canadian tax software will find this line when you search for “home buyers’ amount” or complete the home purchase questions. Claim it for the tax year in which you bought the qualifying home.

Can I claim the first-time home buyer tax credit if I used an FHSA?

Yes, you can claim the first-time home buyer tax credit if you used an FHSA, as long as you qualify for both programs. An FHSA qualifying withdrawal and the Home Buyers’ Amount have separate rules and can be used for the same first-home purchase. FHSA contributions, withdrawals, and the tax credit should each be reported correctly on your tax return.

Can I claim the first-time home buyer tax credit if my parents helped with the down payment?

Yes, you can claim the first-time home buyer tax credit if your parents helped with the down payment, provided you meet the CRA eligibility rules. The source of your down payment does not determine whether you qualify for the credit. You must buy a qualifying home in Canada and meet the first-time buyer or disability-related eligibility requirements.

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