The First-Time Home Buyer’s Tax Credit (HBTC) puts $1,500 back in your pocket after buying your first home in Canada. It is one of the simplest federal incentives to claim — you add one line to your tax return and the credit reduces your federal tax owed. Here is everything you need to know.
How the HBTC works
The HBTC is a non-refundable tax credit worth $10,000, which translates to a $1,500 tax reduction at the 15% federal tax rate.
| Detail | Amount |
|---|---|
| Credit amount | $10,000 |
| Tax savings (15% federal rate) | $1,500 |
| Where to claim | Line 31270 of your T1 return |
| When to claim | Tax return for the year you purchased the home |
| Refundable? | No — reduces tax owing, does not generate a refund if you owe nothing |
Non-refundable means the credit can reduce your federal tax to zero but will not produce a refund beyond that. If your total federal tax for the year is less than $1,500, you will receive less than the full benefit.
Who qualifies
You must meet all of the following criteria:
- First-time buyer status. Neither you nor your spouse/common-law partner owned and occupied a home as a principal residence during the year of purchase or the four preceding calendar years.
- Qualifying home. The property is in Canada and is a detached house, semi-detached, townhouse, condominium, mobile home, or a share in a co-operative housing corporation.
- Registered on title. The home is registered in your name or your spouse/partner’s name (or both) in the applicable land registry.
- Intent to occupy. You intend to live in the home as your principal residence within one year of purchase.
Disability exception
If you or a related person with a disability is purchasing a home to provide more accessible housing, you do not need to be a first-time buyer. The home must be purchased to allow the person with a disability to live in a more accessible dwelling.
How to claim the HBTC on your tax return
| Step | What to Do |
|---|---|
| 1 | Complete your T1 tax return for the year you purchased the home |
| 2 | Enter $10,000 on Line 31270 — “Home buyers’ amount” |
| 3 | The $1,500 credit is calculated automatically and reduces your federal tax |
| 4 | If filing jointly with a spouse, decide how to split the $10,000 (cannot exceed $10,000 combined) |
You do not need to submit proof of purchase with your return, but keep your agreement of purchase and sale, closing documents, and title registration in case the CRA requests verification.
Splitting the credit with your spouse
If you bought the home with your spouse or common-law partner, you can divide the $10,000 however you want — as long as the total claimed between both returns does not exceed $10,000.
| Scenario | Best Split |
|---|---|
| Both partners have similar incomes and owe federal tax | $5,000 each ($750 savings each) |
| One partner has low income / low tax owing | Full $10,000 to the higher-income partner |
| One partner doesn’t qualify as first-time buyer | Full $10,000 to the qualifying partner |
How the HBTC stacks with other first-time buyer programs
The HBTC is just one of several incentives available to Canadian first-time buyers. These programs are not mutually exclusive — you can use all of them on the same purchase.
| Program | Benefit | Can You Stack with HBTC? |
|---|---|---|
| HBTC (this article) | $1,500 tax credit | — |
| FHSA | Tax-deductible contributions + tax-free withdrawals for down payment | ✅ Yes |
| RRSP Home Buyers’ Plan (HBP) | Withdraw up to $60,000 from RRSP tax-free for down payment | ✅ Yes |
| GST/HST New Housing Rebate | Rebate on GST/HST paid on new construction or renovated homes | ✅ Yes |
| Provincial land transfer tax rebate | Varies — ON, BC, PEI offer first-time buyer rebates | ✅ Yes |
Example: maximum first-time buyer benefits stacked
| Incentive | Benefit |
|---|---|
| FHSA | Up to $40,000 in tax-deductible, tax-free down payment savings |
| RRSP HBP | Up to $60,000 tax-free RRSP withdrawal (couple: $120,000) |
| HBTC | $1,500 federal tax credit |
| Ontario land transfer tax rebate | Up to $4,000 (on homes up to $368,000) |
| Toronto municipal LTT rebate | Up to $4,475 (Toronto only) |
| Total potential benefits | $40,000+ in tax-sheltered savings, $1,500 credit, up to $8,475 in LTT rebates |
Provincial first-time buyer tax credits and rebates
Several provinces offer their own first-time buyer credits or rebates in addition to the federal HBTC.
| Province | Program | Benefit |
|---|---|---|
| Ontario | Land transfer tax rebate | Up to $4,000 on the provincial portion |
| British Columbia | Property transfer tax exemption | Full exemption on homes up to $500,000; partial to $525,000 |
| PEI | Real property transfer tax rebate | First-time buyers exempt from 1% transfer tax |
| Toronto | Municipal LTT rebate | Up to $4,475 |
| Quebec | No specific FTHB tax credit | — (but lower notary/transfer costs generally) |
| Alberta | No land transfer tax exists | No transfer tax for anyone |
| Saskatchewan | No specific FTHB tax credit | — |
| Manitoba | No specific FTHB tax credit | — (but land transfer tax is lower than ON/BC) |
For detailed province-by-province guides, see our first-time home buyer provincial pages.
Common questions
Can I claim the HBTC on a cottage or vacation property? Only if you intend to make it your principal residence within one year of purchase. Investment or vacation properties that you will not live in do not qualify.
Can I claim the HBTC if I buy a home but don’t move in for 8 months? Yes — you have one year from the date of purchase to move in. Delays due to renovations or a current lease ending are fine as long as you occupy within 12 months.
What if I bought in December but didn’t close until January? The HBTC is claimed in the year the title transfers (closing date), not the date you signed the agreement of purchase and sale.
Can I claim the HBTC and also deduct moving expenses? Yes, if you moved at least 40 km closer to a new workplace. The two claims are independent.