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Home Buyers’ Amount 2026: The $10,000 First-Time Buyer Tax Credit

Home Buyers’ Amount 2026: The $10,000 First-Time Buyer Tax Credit

If you bought your first home this year, there is a $10,000 claim on your tax return that many buyers miss. It will not pay for the down payment, but it can cut your federal tax by up to $1,400 for a 2026 purchase.

  • Rules checked November 4, 2026
  • By Krish Paul
  • 9 min read
On this page
  1. The short answer
  2. Who can claim the home buyers’ amount
  3. How much the credit is worth
  4. Worked example: a couple splitting the claim
  5. Four mistakes that cost buyers the credit
  6. How to claim it
  7. How it fits with other first-home programs
  8. Frequently asked questions

This guide covers who qualifies, what the credit is worth, how to split it with a partner and how it differs from the new GST/HST rebate for first-time buyers.

The short answer

The home buyers’ amount lets a first-time buyer claim up to $10,000 on line 31270 of the tax return for the year they bought a qualifying home in Canada. It is a non-refundable credit worth $10,000 times the lowest federal tax rate, which is $1,400 for a 2026 purchase. You can split the $10,000 with a spouse, common-law partner or co-buyer who also qualifies, but the total cannot go over $10,000.

The rules are on the CRA’s line 31270 page and in section 118.05 of the Income Tax Act. You do not apply separately. You claim it when you file, and you keep your purchase documents in case the CRA asks to see them.

Sealed moving boxes and a potted plant in an empty sunlit room of a new townhouse with a snowy street outside the window
The credit is claimed for the year you take ownership of your first home. Image: AI-generated for Gizly.

Who can claim the home buyers’ amount

The CRA says you can claim it if you meet all of these conditions.

  • You, or your spouse or common-law partner, acquired a qualifying home. The home must be registered in your name or your partner’s name under the land registration system where it is located.
  • You are a first-time home buyer. You did not live in another home that you or your partner owned, inside or outside Canada, in the year you bought or in any of the four years before.
  • You plan to live there. You, or a related person with a disability, must intend to move in as a principal residence no later than one year after the purchase.

The test is about living in a home you owned. Owning a rental property you never lived in is not the same thing, but read the exact wording in section 118.05 before you rely on that if your situation is unusual.

The four-year window, by date

The Act counts from the start of the fourth calendar year before the purchase up to the day before you take ownership. Here is how the window falls for three purchase dates.

Look-back window for the first-time buyer test by purchase date
You acquire the home on Window starts Window ends
March 15, 2026 January 1, 2022 March 14, 2026
November 30, 2026 January 1, 2022 November 29, 2026
February 1, 2027 January 1, 2023 January 31, 2027

Dates worked out by script from the rule in subsection 118.05(1). If you lived in a home you or your partner owned at any point in the window, you are not a first-time buyer for this credit.

What counts as a qualifying home

The home must be in Canada. It can be an existing home or one under construction. The CRA lists these types:

  • a single-family house, semi-detached house or townhouse
  • a mobile home
  • a condominium unit
  • an apartment in a duplex, triplex, fourplex or apartment building
  • a share in a co-operative housing corporation that gives you an equity interest in a unit, not one that only gives you the right to rent it

If you or a relative has a disability

You do not have to be a first-time buyer if you are eligible for the disability tax credit, or you bought the home for a related person who is. The purchase must be meant to let that person live in a home that is more accessible or better suited to their needs. Eligibility is checked for the year you acquire the home, so it helps to have Form T2201 approved first. Our disability tax credit guide explains how that works.

How much the credit is worth

The claim amount is $10,000. Your tax saving is that amount times what the Act calls the appropriate percentage, which section 248(1) defines as the lowest federal tax rate for the year. That rate fell from 15% to 14.5% for 2025 and to 14% for 2026, so the same $10,000 claim is now worth a little less.

Maximum home buyers’ amount by year you bought
Year you bought Most you can claim Lowest federal rate Most it can save you
2026 $10,000 14% $1,400
2025 $10,000 14.5% $1,450
2024 $10,000 15% $1,500

Claim amounts from the CRA line 31270 page. Rates from the CRA federal tax rate tables. The CRA table shows a $5,000 limit for 2015 to 2021 and $10,000 for 2022 and 2023.

Most the credit can save you, by purchase yearMaximum value of the home buyers’ amount: 2024 purchase, $1,500; 2025 purchase, $1,450; 2026 purchase, $1,400.2024 purchase$1,5002025 purchase$1,4502026 purchase$1,400
The $10,000 claim multiplied by the lowest federal tax rate for each year: 15% for 2024, 14.5% for 2025 and 14% for 2026, from CRA rate tables and Income Tax Act sections 118.05 and 248(1). Chart by Gizly.

The saving is the most you can get. The CRA says the credit reduces the federal income tax you may owe, but you will not get a refund for it if you have no tax payable. A buyer with a low income in the purchase year may get only part of it, or none.

There is no provincial or territorial version on the federal return. The CRA lists the provincial line as not applicable.

Worked example: a couple splitting the claim

This is a hypothetical example. Two partners buy a townhouse together in March 2026. Neither has lived in a home that either of them owned at any time since January 1, 2022, and both move in right away, so both qualify. They decide that one will claim $6,000 and the other $4,000.

Hypothetical split of the home buyers’ amount for a 2026 purchase
Person Amount on line 31270 Federal tax saving at 14%
Partner A $6,000 $840
Partner B $4,000 $560
Total for the home $10,000 $1,400

Calculated by script and checked a second way in whole cents. Each saving assumes that partner owes at least that much federal tax for 2026.

Splitting makes sense when one partner owes little tax. If Partner B expected to owe almost nothing, the couple could put the full $10,000 on Partner A’s return instead. The Act says that if co-buyers cannot agree on the split, the Minister may fix the portions.

Four mistakes that cost buyers the credit

  • Both partners claiming $10,000The total for one home is capped at $10,000, however many buyers there are.
  • Splitting when only one partner qualifiesIf only one of you is a first-time buyer, only that person can claim, and they can claim the full amount.
  • Claiming in the wrong yearThe claim goes on the return for the year you acquired the home, meaning the year ownership was registered to you.
  • Expecting a chequeThis is a non-refundable credit. It lowers tax you owe and does not pay out on its own.

How to claim it

  1. Confirm the purchase year. Use the year the home was registered in your name or your partner’s name.
  2. Check the four-year window. Use the table above to see which years count for your purchase date.
  3. Agree on the split. If you bought with an eligible partner or co-buyer, decide who claims what before either of you files.
  4. Enter the amount on line 31270. Enter up to $10,000 if you are not splitting it, or your share if you are.
  5. Keep your documents. The CRA says not to send supporting documents when you file. Keep the purchase and title papers in case it asks for them later.

If you missed it or claimed it wrong

The CRA says you must wait for your notice of assessment before you ask for a change. You can then use Change my return in your CRA account or ReFILE in certified tax software, which take about 2 weeks. A paper request on Form T1-ADJ takes about 20 weeks. The CRA also says a refund cannot be issued for a request made more than 10 calendar years after the end of the tax year.

How it fits with other first-home programs

The home buyers’ amount is a small tax credit. Three other federal programs can be worth more, and each has its own rules.

  • First Home Savings Account. A tax-free account for saving toward a first home. See our FHSA guide.
  • Home Buyers’ Plan. Lets you take money out of your RRSP for a first home and pay it back over time. See our Home Buyers’ Plan guide.
  • First-time home buyers’ GST/HST rebate. A refund of GST, or the federal part of the HST, on a new home, covered below.

None of these is a substitute for the others, and the home buyers’ amount uses its own first-time buyer test. Our closing costs calculator shows the other bills that land on closing day.

The first-time home buyers’ GST/HST rebate

This rebate is in force and the CRA’s rebate page says applications are open. It applies only to a home that is newly built or substantially renovated and will be your primary residence. If you buy from a builder, you must have signed the agreement of purchase and sale on or after March 20, 2025, and before 2031.

First-time home buyers’ GST/HST rebate by home value
Home value Rebate
$1 million or less Up to 100% of the GST or federal HST, to a maximum of $50,000
$1.25 million $25,000, the CRA’s own example
Over $1 million to under $1.5 million Reduced gradually
$1.5 million or more No rebate

Source: CRA first-time home buyers’ GST/HST rebate pages. A straight-line reduction from $50,000 at $1 million to zero at $1.5 million reproduces the CRA’s $25,000 example.

Its first-time buyer test is close to line 31270 but not identical. You must be at least 18, a Canadian citizen or permanent resident, and neither you nor your partner can have received this rebate before. You usually have up to 2 years from the date ownership is transferred to apply. In Ontario, the CRA says a separate rebate can cover up to $80,000 of the 8% provincial part of the HST.

Frequently asked questions

How much is the first-time home buyers’ tax credit?

You can claim up to $10,000 on line 31270. The credit is that amount multiplied by the lowest federal tax rate, so it is worth up to $1,400 for a home bought in 2026, $1,450 for 2025 and $1,500 for 2024.

Who counts as a first-time home buyer for line 31270?

You qualify if you did not live in another home that you or your spouse or common-law partner owned, in Canada or abroad, in the year you bought or in any of the four years before. People eligible for the disability tax credit, and people buying for a related person who is eligible, do not have to be first-time buyers.

Can my spouse and I both claim $10,000?

No. Eligible spouses, common-law partners or co-buyers can split the claim, but the total for one home cannot be more than $10,000. If only one of you meets the conditions, only that person can claim it.

Will I get the credit if I owe no tax?

No. The CRA says the credit reduces the federal income tax you may owe, but you will not get a refund for it if you have no tax payable.

What if I forgot to claim the home buyers’ amount?

After you receive your notice of assessment, you can ask the CRA to change that year’s return. Online requests through Change my return or ReFILE take about 2 weeks, and paper requests on Form T1-ADJ take about 20 weeks.

Is this the same as the first-time home buyers’ GST/HST rebate?

No. Line 31270 is an income tax credit on any qualifying home. The GST/HST rebate is a separate refund of up to $50,000 of GST, or the federal part of the HST, on a newly built or substantially renovated home, with its own rules and application.

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How this page was made: Gizly uses AI tools to help research and draft its guides. Krish Paul, the editor, is responsible for what Gizly publishes. Spot an error? Tell us and we will fix it.

Krish Paul

Krish Paul owns and edits Gizly, an independent Canadian money site. Each guide cites the government rules and institution terms it relies on, with the date the figures were checked.

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