First-Time Home Buyers' Tax Credit (HBTC): $10,000 Claim Explained

Purchasing a home in Canada is more than just a lifestyle milestone; it is a complex financial transaction involving significant closing costs. From legal fees to land transfer taxes, the "hidden" costs of homeownership can easily reach $5,000 to $15,000. In 2026, the First-Time Home Buyers' Tax Credit (HBTC) remains one of the most effective ways for new owners to recoup some of that cash during tax season.

Also known as the Home Buyers' Amount, this credit allows you to claim $10,000 on your tax return, resulting in a direct tax reduction of $1,500. However, many newcomers and previous owners miss this credit because they don't realize that the definition of a "first-time buyer" is broader than the name suggests.

As a core part of our Hidden Tax Credits Canada 2026 Master List, this guide breaks down the eligibility criteria for Line 31270, explains the "Disability Exception," and reveals the strategies to stack this credit with the FHSA and the Home Buyers' Plan (HBP).

1. The Math: $10,000 Claim vs. $1,500 Credit

There is often confusion between the "Amount" and the "Credit."

• The Amount (Line 31270): You enter $10,000 on your tax return.
• The Credit (The Refund): The CRA multiplies that amount by the lowest federal tax rate, which is 15%.
• The Result: $10,000 \times 0.15 = **$1,500**.

This is a non-refundable tax credit. This means it can reduce the tax you owe to zero, but if you already owe $0 in tax, the government will not send you the $1,500 as a check. If you have low income, the strategy is to have the higher-earning spouse claim the amount to ensure the full $1,500 is utilized.

2. Who Qualifies? The "4-Year" Rule

You don't necessarily have to be a "first-time" owner in the literal sense. The CRA uses a rolling 4-year window.

• The Rule: You qualify if you (or your spouse/partner) did not live in another home that you owned in the year of the purchase or any of the four preceding years.
• The Resident Rule: You must be a resident of Canada at the time of the purchase.
• The Move-In Rule: You must intend to occupy the home as your principal residence no later than one year after it is acquired or built.

3. The Disability Exception Hack)

This is the biggest gap in public knowledge regarding the HBTC.

• The Hack: You do not have to be a first-time home buyer if you are eligible for the Disability Tax Credit (DTC).
• The Strategy: If you already own a home but purchase a new home that is "more accessible" or "better suited" to your needs (e.g., a bungalow instead of a two-story house), you can claim the $10,000 HBTC again.
• The Move: This exception also applies if you buy a home for a related person with a disability to live in.

Homeowner Hacks

This deep dive identifies the technical strategies that allow you to maximize your first-year homeownership cash flow.

1. The "Splitting" Strategy for Married Couples

HBTC Line 31270 splitting rules.

• The Street Angle: If both spouses are first-time buyers, they can split the $10,000 claim (e.g., $5,000 each).
• The Hack: Only split the credit if the primary claimant doesn't have enough tax to pay.
• The Strategy: If you owe $1,200 in federal tax, and your spouse owes $800, neither of you can take the full $1,500 benefit alone. By splitting the claim $5,000/$5,000, you both get a $750 reduction, covering your entire combined tax bill.

2. The "Triple Threat" Stacking: FHSA + HBP + HBTC

In 2026, the real wealth move is the "Triple Stack."

• Step 1: Use your FHSA to withdraw your $40,000 (plus growth) tax-free.
• Step 2: Use the Home Buyers' Plan (HBP) to withdraw up to $60,000 from your RRSP (the 2026 limit).
• Step 3: Claim the $10,000 HBTC on your tax return after the purchase.
• The Payoff: This combination allows you to put over $100,000 toward a down payment and then get a $1,500 "Thank You" from the government at tax time.

3. Qualifying Homes: The Mobile Home & Condo Catch

Users often ask: "Can I claim HBTC for a mobile home or a condo?"

• The Hack: Yes. The HBTC covers single-family houses, semi-detached houses, townhouses, mobile homes, condo units, and even apartments in a multi-unit building.
• The "Condo Catch": You cannot claim the HBTC in the year you pay your deposit or during "Interim Occupancy." You can only claim it in the year the title is officially registered in your name. If you moved into a new condo in 2025 but didn't close until 2026, you claim it on your 2026 tax return (filed in 2027).

4. Quebec Residents: The Double Credit

A rising search in 2026 is "Quebec First-Time Home Buyers' Tax Credit."

• The Hack: If you live in Quebec, you get to "Double-Dip."
• The Strategy: You claim the $10,000 on your federal return (Line 31270) AND you claim the equivalent on your Quebec provincial return (Form TP-752.HA-V).
• The Result: This can turn a $1,500 federal credit into a **$3,000 combined credit**—the highest in the country.

5. The "Land Transfer Tax Rebate" Distinction

Don't confuse the HBTC with provincial land transfer tax rebates.

• The Street Angle: In Ontario, BC, and PEI, there are separate land transfer tax (LTT) rebates.
• The Hack: You can claim BOTH.
• The Move: The LTT rebate happens at the lawyer's office when you buy. The HBTC happens on your tax return months later. Ensure your lawyer has applied for the provincial rebate so you don't overpay upfront.

5. 2026 Quick Reference Table: Homeowner Benefits

HBTC 2026

How much is the First-Time Home Buyers' Tax Credit for 2026? The HBTC (Line 31270) allows eligible home buyers to claim a $10,000 amount, resulting in a non-refundable tax credit of $1,500. To qualify, you must not have lived in a home owned by you or your spouse in the current year or the previous four years. A major exception exists for persons with disabilities, who can claim the credit even if they have owned a home recently, provided the new home is more accessible.

Frequently Asked Questions (FAQ)

Q: I bought my house with a friend, not a spouse. Can we both claim it?

A: You can both claim it, but the total combined claim for the house cannot exceed $10,000. For example, you can each claim $5,000 on your respective returns.

Q: What if I forget to claim it this year?

A: You cannot "carry it forward" to next year, but you can Refile or adjust your 2026 return later. Use the "Change my Return" feature in CRA My Account.

Q: Does a "Rent-to-Own" property qualify?

A: Only once you officially purchase the home and the title is registered in your name. Payments made while you are "Renting" do not count toward the HBTC.

Q: Can I claim it for a cottage or rental property?

A: No. The home must be your principal residence. Rental properties or secondary vacation homes are strictly ineligible.

About the Author

Jeff Calixte (MC Yow-Z) is a Canadian labour market researcher and digital entrepreneur specializing in government benefit data and cost-of-living support. As the founder of CanadaPaymentDates.ca and BetterPayJobs.ca, Jeff helps newcomers, students, and workers navigate the Canadian social safety net—from tracking CRA payment schedules to finding entry-level work.

Sources

1. Canada.ca: Line 31270 – Home buyers' amount
2. CRA: Definitions for first-time home buyer and qualifying home
3. Revenu Québec: Home Buyers' Tax Credit - TP-752.HA-V

Note

Official 2026 payment dates and benefit amounts are determined by the Canada Revenue Agency (CRA) and provincial governments. While we strive to keep this information current, government policies and schedules are subject to change without notice. All data in this guide is verified against official CRA circulars at the time of publication and should be treated as an estimate. We recommend confirming the status of your personal file directly via CRA My Account or by calling the CRA benefit line at 1-800-387-1193.