Buying your first home in Québec? The province’s Home Buyers’ Tax Credit can return up to $1,400 in cash when you file your end of year taxes.
In this article we take a look at how you can access this credit.
More specifically we look at:
- What is Quebec’s Home Buyers’ Tax Credit?
- How the Home Buyers’ Tax Credit works in Quebec
- Who’s eligible for Quebec’s Home Buyers’ Tax Credit?
- Which type of homes qualify for Quebecs Home Buyers’ Tax Credit?
- Other assistance programs for Quebec Home Buyers
What is Quebec’s Home Buyers’ Tax Credit?
The Home Buyers’ Tax Credit in Québec is a provincial, non-refundable income tax credit designed to help first-time home buyers offset some of the costs of purchasing a home in the province.
If you qualify, the credit can reduce your Québec provincial income tax by up to $1,400 in the year you buy your first home. Unlike the federal First-Time Home Buyer’s Tax Credit, this one is administered by Revenu Québec and is claimed on your Québec tax return, not your federal return.
It is called “non-refundable” since the credit can only reduce the amount of tax you owe. The government does not pay you any unused portion as a refund if the credit is larger than your tax bill.
Buyers Tip
How the Home Buyers’ Tax Credit works in Quebec
You do not need a separate application or pre-approval to get the Québec Home Buyers’ Tax Credit. You simply need to claim it when you file your Québec income tax return for the year you bought your qualifying home.
To claim the credit, you must complete and include form TP-752.HA-V (Home Buyers’ Tax Credit) with your tax return. This tells Revenu Québec that you meet the eligibility conditions and ensures the credit is applied to reduce your Québec provincial taxes owed.
If you qualify, you can claim up to $10,000 as the home buyers’ amount on your Québec tax return. Québec applies its lowest personal income tax rate (currently 14%) to that amount. This means the credit can lower your provincial tax bill by up to $1,400. It does not provide a cash refund beyond the taxes you owe.
If you bought the home with a spouse or common-law partner, you can share the $10,000 home buyers’ amount between you in any proportion you choose. However, the combined total claimed cannot exceed $10,000, which translates to a maximum provincial tax reduction of $1,400 (14% of $10,000).
Who’s eligible for Quebec’s Home Buyers’ Tax Credit?
You may be eligible for Québec’s Home Buyers’ Tax Credit if all of the following apply:
- Resident of Quebec: You were a resident of Québec at the end of the tax year (December 31, or the date you stopped residing in Canada).
- Bought a qualifying home: In that tax year, you or your spouse/common‑law partner bought a qualifying home and intend to make it your principal residence within one year of purchase. You are considered a first‑time buyer if neither you nor your spouse lived in a home you owned in that year or any of the previous four years.
There are also special rules for persons with a disability. These state that instead of being a first‑time buyer, you bought a qualifying home for someone related to you with a disability and you intend for that home to be their principal residence. In that case, the home must be more accessible or better suited to that person’s needs.
Buying a home for a person with a disability?
Which type of homes qualify for Quebecs Home Buyers’ Tax Credit?
To qualify for Quebecs’ Home Buyers’ Tax Credit the home must meet the following criteria.
- The home must be located in Quebec.
- The home must be one of the following types of property:
- a detached, semi-detached or town house
- a manufactured home
- a mobile home
- an apartment in a condominium building
- an apartment in a multiple unit residential complex
- A share in a cooperative housing corporation that gives you the right to occupy a specific housing unit
The home is considered purchased if the details of the purchase are published in the land register and the home is habitable.
Buyers Note
Other assistance programs for Quebec home buyers
In addition to the Quebec Home Buyers’ Tax Credit, home buyers in Quebec can take advantage of several other provincial programs that help reduce the costs of purchasing a home. These include:
| Program Name | Description | Maximum Refund |
|---|---|---|
| GST/QST Rebate for New Housing | Allows eligible buyers of new or substantially renovated homes to recover a portion of the GST and QST paid on the purchase price. | Up to $30,000 (combined GST/QST rebate, depending on home price and province rules) |
| Welcome Tax (Taxe de bienvenue) Assistance | Certain municipalities, including Montreal, provide partial or full rebates of the land transfer tax for eligible first-time buyers or families. | Varies by municipality; for Montreal, first-time buyers with children can receive up to 100% of the tax paid, depending on purchase price and eligibility. |
Québec residents can also take advantage of several federal programs that help reduce the cost of buying a home. Here’s a quick overview:
| Program Name | Description | Maximum Benefit |
|---|---|---|
| RRSP Home Buyers’ Plan (HBP) | Allows first-time buyers to withdraw up to $60,000 from their RRSP to buy or build a home, tax-free, as long as it is repaid over 15 years. | $60,000 per person |
| First Home Savings Account (FHSA) (also called CELIAPP) | A tax-free savings account for first-time buyers. Contributions are tax-deductible, and withdrawals for a qualifying home are tax-free. | $8,000/year, up to $40,000 lifetime |
| First-Time Home Buyers’ Tax Credit (HBTC) | A non-refundable tax credit that reduces federal income tax for first-time buyers. | Up to $1,500 tax reduction (15% of $10,000 home buyers’ amount) |
| GST/HST New Housing Rebate | Lets you recover part of the GST or HST paid on the purchase or construction of a new home, making new homes more affordable. | Up to $6,300 (depending on purchase price and GST/HST paid) |
In addition to federal and provincial tax credits, Canada’s Mortgage and Housing Corporation (CMHC) offers programs that can help Quebec home buyers reduce costs and improve energy efficiency. Learn more about the CMHC Eco Improvement Program, Eco Plus , and other CMHC initiatives.
Frequently Asked Questions
Looking to buy a property in Quebec?
Are you looking to buy a property in Quebec? The best realtors know how to access financial programs that get the most value from your purchase. They leverage their networks of financial advisors, mortgage experts, and industry connections to make sure you get the best deal for you. That’s why it’s crucial to work with a specialist realtor. One who truly understands your needs and the market.
In Quebec, there are more than 17,000 agents.
At Immovision, we scan the market to find the top-performing, active agents who are the perfect fit for your specific project. Once we identify them, we connect you directly with these agents so you can make confident, informed decisions.
Find your ideal agent today and maximize your home-buying power.
