How much is the first time home buyers' tax credit for 2026, and who can claim it?
For 2026, the first time home buyers' tax credit is worth $1,400: the $10,000 home buyers' amount times the 14% lowest federal rate. A 2025 purchase earns $1,450 at 14.5%. Your client qualifies if they didn't live in a home they or their spouse owned in the purchase year or the four before it, and joint buyers share one $10,000.
What is the credit worth for each purchase year?
The amount is fixed at $10,000, but the credit is that amount times the "appropriate percentage" for the year laws-lois.justice.gc.ca, which the Act defines as the lowest federal tax rate
laws-lois.justice.gc.ca. That rate is 14% for 2026
canada.ca, and 14.5% for 2025 because the rate fell from 15% to 14% on July 1, 2025
canada.ca.
| Year the home is acquired | Home buyers' amount | Rate | Federal credit |
|---|---|---|---|
| 2026 | $10,000 | 14% | $1,400 |
| 2025 | $10,000 | 14.5% | $1,450 |
| 2022 to 2024 | $10,000 | 15% | $1,500 |
| 2015 to 2021 | $5,000 | 15% | $750 |
The amount doubled to $10,000 for homes acquired on or after January 1, 2022, which Budget 2022 described as up to $1,500 of relief budget.canada.ca. The CRA lists $10,000 for 2022 through 2025 and $5,000 for 2015 through 2021
canada.ca. The $1,500 figure still circulates, and as of October 2026 even the CRA's homeowners hub page says "up to $1,500"
canada.ca. For 2025 and 2026 purchases it overstates the credit.
It's a federal credit only: the CRA shows no provincial or territorial line for it canada.ca. It's also a credit that cannot create a refund, so a client with less than $1,400 of federal tax loses the unused part unless an eligible joint owner claims it.
Who counts as a first time buyer under section 118.05?
Your client qualifies if they didn't own, alone or jointly, a home they lived in during the period that starts on January 1 of the fourth preceding calendar year and ends the day before the purchase laws-lois.justice.gc.ca. For a 2026 purchase, that window opens January 1, 2022. The spouse or common law partner test is narrower: it only looks at a home the spouse owned that your client lived in during the relationship.
They must also intend to live in the home as their principal residence no later than one year after acquiring it laws-lois.justice.gc.ca. The home has to be in Canada and registered in your client's name or their spouse's name under the land registration system. Houses, semis, townhouses, mobile homes, condo units and existing homes or homes under construction all qualify. A cooperative housing share qualifies only if it gives an equity interest, not just a right to rent
canada.ca.
Because the definition covers a home "acquired by the individual, or by the individual's spouse or common law partner" laws-lois.justice.gc.ca, a spouse who isn't on title can still claim, as long as that spouse meets the ownership and occupancy tests. That's useful when the titleholder has little federal tax to absorb the credit.
When does the home count as acquired?
The credit goes on the return for the year the home is acquired, and the Act treats a home as acquired only once the buyer's interest is registered under the land registration system laws-lois.justice.gc.ca. The date the purchase agreement was signed doesn't matter.
That makes a late December closing a real planning point. A deal signed in November 2025 that registers on January 6, 2026 is a 2026 acquisition, claimed on the 2026 return at 14% for $1,400, not $1,450. It also moves the four year look back window forward by a year, which can help a client who sold a former home in 2021.
How do joint buyers split the $10,000?
Every eligible person who buys the same home shares one amount: the total claimed by all of them can't exceed the maximum any one of them could claim, and if they can't agree, the CRA can fix the split laws-lois.justice.gc.ca. Spouses can only split when both are eligible. If only one qualifies, that person claims the full $10,000, and joint owners who aren't spouses can also share it if they're eligible
canada.ca.
Worked example: a couple, both first time buyers, take title on a condo that registers in March 2026. One has $1,400 or more of federal tax; the other has only $560 after other credits.
| Claimant | Amount on line 31270 | Credit at 14% |
|---|---|---|
| Spouse A | $6,000 | $840 |
| Spouse B | $4,000 | $560 |
| Total | $10,000 | $1,400 |
Spouse B claims exactly enough to wipe out their $560 of federal tax, and Spouse A takes the rest. Claiming $5,000 each would leave $140 of Spouse B's credit unused. Claiming $10,000 each is the error the CRA catches: the combined claim is capped at $10,000.
Can a client who already owned a home still claim it?
Yes, if your client is eligible for the disability tax credit, or buys the home for a related person who is. The first time buyer test drops away, but the purchase has to let that person live in a home that is more accessible or better suited to their needs canada.ca. Your client must intend that person to live in it within one year of the purchase
laws-lois.justice.gc.ca. See disability tax credit 2026 for DTC eligibility.
The home buyers' amount sits alongside the RRSP withdrawal under the Home Buyers' Plan and a tax free FHSA withdrawal, each with its own rules, and new builds may also qualify for the first time home buyers' GST rebate.
Sources
Do I send the purchase documents with the return?
No. The CRA says not to send supporting documents, but your client should keep the statement of adjustments and the registered deed in case the CRA asks for them later canada.ca.
Does the top up tax credit restore the 15% rate on the home buyers' amount?
Only in a narrow case. The top up tax credit on line 34990 keeps a 15% rate for credit amounts claimed above the first bracket threshold canada.ca, which is $58,523 for 2026, and applies for 2025 to 2030
canada.ca. A client whose total credit amounts stay under that threshold gets the plain $1,400.
Can the client claim it on a cottage or rental property?
Not on a pure rental. The credit needs your client (or a related person eligible for the DTC) to intend to occupy the home as a principal residence within one year of acquiring it laws-lois.justice.gc.ca. A home they will live in qualifies even if they rent out part of it.
What if my client claimed it but never moved in?
The test is intent at the time of purchase to occupy the home within one year laws-lois.justice.gc.ca. If that intent wasn't there, the claim doesn't hold, so document the reason when plans change after closing.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.