CRA First-Time Home Buyers' Tax Credit Guide 2026
Understand the 2026 federal Home Buyers' Amount on Line 31270, including the $10,000 claim amount, normal 14% federal credit value, first-time-buyer test, disability exception, qualifying homes and joint claims.
1. What Is the Home Buyers' Amount on Line 31270?
The federal Home Buyers' Amount is a non-refundable tax credit available for the purchase of a qualifying home when the statutory conditions are satisfied. For qualifying homes acquired after December 31, 2021, the maximum amount that can be claimed is $10,000. The credit reduces federal income tax payable; it is not a refundable payment for closing costs.
Key Framework Highlights:
- The maximum federal Home Buyers' Amount is $10,000 for a qualifying home.
- For 2026, the lowest federal personal income-tax rate used for most non-refundable tax credits is 14%, making the normal federal value of a $10,000 Home Buyers' Amount $1,400.
- A non-refundable credit cannot create a refund where the taxpayer has no federal tax payable.
- The $10,000 is the amount claimed for the credit; it is not a $10,000 cash benefit.
- The credit can be split among eligible purchasers of the same home, subject to the $10,000 total maximum.
- A temporary 2026 top-up credit can affect rare cases where a taxpayer has very large eligible non-refundable credit amounts above the first federal tax bracket threshold. It should not be described as the normal Home Buyers' Amount value.
Action Checklist:
- Confirm that you or your spouse/common-law partner acquired a qualifying home in the tax year.
- Apply the federal first-time home buyer test unless the disability exception applies.
- Confirm the qualifying home is registered in the appropriate purchaser's name and located in Canada.
- Determine who is eligible to claim the Home Buyers' Amount.
- Enter the appropriate amount on Line 31270.
2. 2026 Home Buyers' Amount: $10,000 Claim vs $1,400 Federal Tax Value
The distinction between the amount claimed on Line 31270 and the actual tax reduction is important. The $10,000 is the federal credit amount. For 2026, most non-refundable credits are valued at the 14% lowest federal personal tax rate.
| Item | 2026 Amount / Treatment |
|---|---|
| Maximum Home Buyers' Amount | $10,000 |
| Normal federal credit rate | 14% |
| Normal federal tax reduction | $1,400 |
| If federal tax payable is less than $1,400 | The non-refundable credit cannot reduce federal tax below zero |
| Rare Top-Up Tax Credit situation | A separate 2025–2030 top-up can preserve the 15% rate on certain non-refundable credit amounts above the first bracket threshold |
3. Federal First-Time Home Buyer Eligibility
Generally, an individual can claim the Home Buyers' Amount when the individual or their spouse/common-law partner acquired a qualifying home and the first-time home buyer condition is satisfied. The test looks at where the claimant lived, not simply whether the claimant ever owned real estate.
| Requirement | CRA Rule |
|---|---|
| Home acquired | You or your spouse/common-law partner must acquire a qualifying home |
| Residence history | You must not have lived in another home inside or outside Canada that you or your spouse/common-law partner owned during the acquisition year or any of the four preceding years |
| Qualifying home | Must satisfy CRA's qualifying-home definition and be located in Canada |
| Disability exception | The first-time home buyer condition does not have to be satisfied where the disability rules apply |
| Claim timing | Claim the amount for the tax year in which the qualifying home is acquired |
4. Qualifying Home Types
CRA's qualifying-home definition covers more than a detached house. The home must be registered in the appropriate purchaser's name under the applicable land-registration system and located in Canada.
| Housing Type | Federal Home Buyers' Amount Eligibility |
|---|---|
| Single-family detached house | Qualifying |
| Semi-detached house | Qualifying |
| Townhouse | Qualifying |
| Mobile or manufactured home | Qualifying when it meets the statutory housing-unit requirements |
| Condominium unit | Qualifying |
| Apartment in a duplex, triplex, fourplex or apartment building | Qualifying |
| Qualifying co-operative housing share | Qualifying when the share gives the required ownership/equity interest in a Canadian housing unit |
| Co-op share giving only tenancy rights | Does not satisfy the qualifying-home definition |
Action Checklist:
- Confirm the home is located in Canada.
- Confirm ownership is registered in your, your spouse's or common-law partner's name as applicable.
- For a co-operative, confirm that the share gives an ownership/equity interest rather than only tenancy rights.
- Keep the purchase and ownership documents in case CRA requests them.
5. Disability Exception to the First-Time Buyer Rule
The federal Home Buyers' Amount has a specific exception for persons with disabilities. A claimant who is eligible for the Disability Tax Credit does not have to satisfy the ordinary first-time home buyer test. The exception can also apply when the home is acquired for the benefit of a related person eligible for the DTC.
| Situation | First-Time Buyer Requirement |
|---|---|
| Claimant is eligible for the DTC | Ordinary first-time home buyer test does not have to be satisfied |
| Home is acquired for the benefit of a related person eligible for the DTC | Ordinary first-time buyer test can also be waived under the disability rules |
| Ordinary first-time buyer | Four-year history rule applies |
6. Principal-Residence Occupancy Requirement
The Home Buyers' Amount requires that the qualifying home be intended for use as a principal residence by the claimant or, where the disability rules apply, by the related person with a disability.
| Scenario | Occupancy Requirement |
|---|---|
| Ordinary first-time home buyer | You must intend to occupy the home as your principal residence no later than one year after acquisition |
| Home acquired for a related person with a disability | The related person must be intended to occupy the home as their principal residence within one year |
| Pure investment property | Does not satisfy the principal-residence requirement |
| Home jointly purchased with another person | Each claimant's eligibility and occupancy circumstances must be considered |
7. Joint Purchases and Splitting the $10,000
The Home Buyers' Amount can be split among multiple eligible purchasers of the same qualifying home. However, the total claims for that home cannot exceed $10,000.
| Claimant Situation | Permitted Claim |
|---|---|
| Only one spouse/common-law partner is eligible | That eligible person can claim the full $10,000 |
| Both spouses/common-law partners are eligible | They can split the $10,000 in any eligible allocation, such as $5,000/$5,000 |
| Multiple unrelated eligible co-buyers | They can split the amount, but all claims combined cannot exceed $10,000 |
| One eligible and one ineligible purchaser | The ineligible purchaser cannot claim a share merely because they co-own the home |
8. Federal Home Buyers' Amount vs Provincial and Quebec Credits
Line 31270 is a federal credit. Provincial and territorial credits or rebates are separate programs with their own rules, values and filing lines. They should not be described as additional federal Line 31270 amounts.
| Jurisdiction / Program | 2026 Treatment |
|---|---|
| Federal Home Buyers' Amount | Line 31270; maximum $10,000 federal credit amount |
| Saskatchewan First-Time Home Buyers' Amount | Separate Saskatchewan provincial credit reported through the provincial return; current Saskatchewan guidance lists a $15,000 amount for qualifying purchases |
| Quebec Home Buyers' Tax Credit | Separate Revenu Québec credit; 2026 rules provide a refundable tax credit for access to homeownership with a maximum $1,400 credit |
| Ontario and other provincial/municipal home-purchase measures | Separate rebates or programs may apply depending on location and transaction; they do not change federal Line 31270 |
9. When and How to Claim Line 31270
The Home Buyers' Amount is claimed on the federal T1 return for the tax year in which the qualifying home was acquired.
10. What Counts as Supporting Documentation?
CRA does not normally require closing documents to be attached to the return. The taxpayer should retain enough evidence to establish acquisition, ownership, qualifying-home status and eligibility.
Action Checklist:
- Purchase and sale agreement
- Statement of adjustments or closing statement
- Land-title or registration evidence showing the qualifying purchaser
- Evidence of the home being located in Canada
- Evidence supporting principal-residence intention where relevant
- Marriage or common-law documentation where the spouse/common-law partner rules are relevant
- DTC approval or other evidence where the disability exception is being used
- Documents supporting a related-person disability claim where applicable
- Provincial or municipal program documentation if a separate credit or rebate is claimed
11. Temporary Residents, Work-Permit Holders and Newcomers
The federal Home Buyers' Amount does not contain a simple citizenship requirement in the ordinary eligibility test. A newcomer or work-permit holder must instead satisfy the applicable tax and home-purchase requirements, including the acquisition, qualifying-home, first-time-buyer or disability exception, and principal-residence rules.
| Situation | Can the Person Qualify? |
|---|---|
| Canadian citizen first-time buyer | Yes, if all federal conditions are satisfied |
| Permanent resident first-time buyer | Yes, if all federal conditions are satisfied |
| Temporary resident with a valid work permit | Potentially; citizenship is not the test, but all federal Home Buyers' Amount conditions must be satisfied |
| Non-resident buying Canadian property purely as an investment | Does not satisfy the principal-residence requirement |
| Newcomer buying a principal residence | Potentially eligible if the first-time-buyer and other conditions are met |
12. Interaction with FHSA and HBP
The Home Buyers' Amount is a separate federal tax credit and can generally coexist with other first-home programs when each program's independent conditions are met. Claiming Line 31270 does not consume FHSA participation room or HBP withdrawal room.
| Program | Can It Be Used With Line 31270? |
|---|---|
| FHSA qualifying withdrawal | Yes, if the taxpayer satisfies the separate FHSA requirements |
| RRSP Home Buyers' Plan | Yes, if the taxpayer satisfies the separate HBP requirements |
| Federal Home Buyers' Amount | Separate non-refundable federal tax credit |
| Provincial homebuyer credit | May also be available depending on province and separate eligibility |
13. 2026 Home Buyers' Amount vs Other Federal Homebuyer Measures
The $10,000 Home Buyers' Amount should not be confused with other federal housing measures introduced or expanded in 2026.
| Program | Primary Function |
|---|---|
| Home Buyers' Amount — Line 31270 | Non-refundable federal income-tax credit for qualifying home acquisition |
| FHSA | Tax-deductible eligible contributions and tax-free qualifying withdrawals |
| HBP | Up to $60,000 withdrawal from an RRSP with repayment requirements |
| First-Time Home Buyers' GST/HST rebate | Separate GST/HST rebate for qualifying new or substantially renovated homes under its own price, timing and first-time-buyer rules |
| Provincial / municipal rebates | Separate provincial or local programs such as land-transfer-tax rebates |
14. Common 2026 Home Buyers' Amount Mistakes
The most common errors involve confusing the $10,000 credit amount with its tax value, applying the disability exception incorrectly or treating joint ownership as automatic eligibility for every co-buyer.
Action Checklist:
- Using the outdated 15% × $10,000 = $1,500 calculation as the normal 2026 value
- Calling the $10,000 credit a refundable cash payment
- Ignoring the temporary 2026 Top-Up Tax Credit in rare large-credit situations
- Saying a DTC-eligible buyer must purchase an accessible home to use the disability exception
- Forgetting the related-person disability exception
- Saying spouses can always split the amount even if only one spouse is eligible
- Using only Canadian homes when testing the four-year residence history
- Treating the current year as excluded from the first-time-buyer test
- Forgetting that the qualifying home must be registered in the appropriate purchaser's name
- Omitting qualifying co-operative housing shares from the property definition
- Confusing the federal $10,000 amount with Saskatchewan's separate provincial amount
- Treating Quebec's separate tax credit as part of federal Line 31270
- Assuming a work permit guarantees eligibility
- Sending closing receipts with every return when CRA has not requested them
- Confusing Line 31270 with FHSA, HBP or the federal first-time home buyers' GST/HST rebate
15. Complete 2026 Line 31270 Filing Roadmap
Use this workflow when preparing a 2026 federal Home Buyers' Amount claim.
Frequently Asked Questions
Official Government & CRA References
- CRA - Line 31270 Home buyers' amount
- CRA - Disability-related information and Home Buyers' Amount
- Finance Canada - 2026 non-refundable tax credit rate and Home Buyers' Amount
- CRA - 2026 federal tax rates and brackets
- CRA - Provincial credits and grants
- CRA - Saskatchewan first-time home buyers' amount
- Revenu Québec - Home Buyers' Tax Credit
- Revenu Québec - Home Buyers' Tax Credit Form TP-752.HA-V
2026 HBTC Key Metrics
- Maximum Federal Claim$10,000 per qualifying home
- Normal 2026 Federal Value$1,400 at the 14% credit rate
- Qualifying HomeMust be located in Canada
- Federal Tax LineLine 31270
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