More Winnipeg families are doing the math on multigenerational living — and it's not just about being close. Moving an aging parent or a disabled adult relative into a suite at home can cost far less than a care facility, and the federal government will help pay for the build. The Multigenerational Home Renovation Tax Credit (MHRTC) can put up to about $7,000 back in your pocket (for a renovation completed in 2026) for building a proper granny suite.
After more than a decade in construction and renovations, I've seen plenty of basement "in-law suites" that looked fine until you checked them against the rules — and the rules here matter, both for the tax credit and for the City. I'm a real estate agent, not a builder and not the program administrator, so I'll point you to the right people for the actual work and the paperwork. But I can tell you what to look for, and what a legal suite is really worth.
What the credit is worth
The MHRTC is a refundable federal tax credit equal to the lowest federal personal income tax rate applied to up to $50,000 in eligible renovation costs. That rate dropped recently (the federal "middle-class tax cut"), so the maximum is now about $7,000 for a 2026 renovation (14% × $50,000) and was $7,250 for 2025 (14.5%). It was $7,500 back when the rate was 15%, for renovations completed in 2023–2024. Because the amount is tied to the tax rate in the year the work is finished, it can shift year to year — confirm the current figure with the CRA.
The word refundable is the important part. A lot of home credits only reduce tax you already owe; if your bill is zero, they're worth nothing. This one pays out regardless — if your eligible costs hit the $50,000 ceiling, you get the full credit (about $7,000 for a 2026 renovation) as cash, even in a year you owe no income tax.
One more limit to plan around: it's one claim per qualifying individual, per lifetime. You can't build a suite for the same parent twice and claim it both times. The credit has been available for renovations completed in 2023 and later tax years.
Who and what qualifies
This isn't a credit for any basement reno. It's specifically for building living space so family can move in together. To qualify:
- The suite must be a self-contained secondary unit. That means a private entrance, a kitchen, a bathroom, and a sleeping area — a genuinely independent living space, not a converted bedroom.
- It must be for an eligible person: a senior aged 65 or older, or an adult eligible for the Disability Tax Credit (DTC).
- That person must move in with a qualifying relative. The whole idea is multigenerational living under one roof.
- The unit has to be occupied within 12 months of the renovation being completed.
If the relative you're building for is under 65 and not yet approved for the DTC, that approval (CRA Form T2201) is the gateway — it's worth sorting out before you start.
At-a-glance
| The rule | What it means |
|---|---|
| Credit amount | Lowest federal tax rate × up to $50,000 — about $7,000 (2026); $7,250 (2025) |
| Refundable? | Yes — paid even if you owe no tax |
| Eligible person | Senior 65+, or an adult eligible for the Disability Tax Credit |
| The suite | Self-contained: private entrance, kitchen, bathroom, sleeping area |
| Occupancy | Within 12 months of completion |
| How often | One claim per qualifying individual, per lifetime |
| Available for | Renovations completed in 2023 and later |
Stacking it with the Home Accessibility Tax Credit
If the person moving in is a senior or eligible for the DTC, you're often in range of a second credit too: the Home Accessibility Tax Credit (HATC). Where both apply, the same expenses can count toward the MHRTC and the HATC at the same time — think a zero-threshold shower, grab bars, or widened doorways in the new suite.
The HATC is a separate non-refundable credit at the lowest federal tax rate (14% in 2026, 14.5% in 2025) on up to $20,000 of eligible accessibility work per year — up to about $2,800 in 2026. Whether your project stacks cleanly is a question for a tax professional, but for an accessible suite it can add up.
A contractor's eye on the build
Here's where I'll be blunt, because it's where people get burned. A legal secondary suite in Winnipeg is not a weekend project, and the tax credit assumes you've done it properly.
- You need City of Winnipeg permits. A self-contained suite means building and (usually) electrical and plumbing permits, plus inspections. It has to meet the building code and the zoning rules for your property — secondary suites aren't permitted everywhere or at every size.
- Use a licensed contractor. Egress windows, fire separation between units, a second kitchen, separate heating and ventilation — these are the details that fail an inspection when amateurs guess at them. I'd hire a licensed contractor who has built secondary suites in Winnipeg before and knows the City's process. (I'm happy to tell you what good work looks like; I don't do the build myself.)
- Keep every invoice. The credit is based on eligible costs, and CRA can ask you to back them up. Clean paperwork from a proper contractor protects both your claim and your home.
Cut corners on permits and you don't just risk the credit — you risk an unsellable suite and an insurance problem down the road.
The resale and rental upside
There's a reason a legal suite is worth more than an unpermitted one. Once your parent's needs change, a self-contained, code-compliant suite can become a mortgage helper — legal rental income that many buyers will pay a premium for. An unpermitted basement apartment does the opposite: it scares off lenders, buyers, and insurers. Building it right the first time is what protects the value.
This is general information, not financial, tax, or legal advice. Program details, amounts, and eligibility change and may have been updated since this was published — always confirm the current Multigenerational Home Renovation Tax Credit rules with the Canada Revenue Agency, and your permit requirements with the City of Winnipeg, before you spend. For your own situation, talk to a tax professional.
Thinking about a granny suite before you renovate or sell?
A secondary suite is one of the few renovations that can help a parent age close to family and add real value to your home — if it's done legally. With a contractor's eye, I can help you weigh whether your property suits a suite, what it might be worth at resale or as a rental, and what to ask a contractor before you sign.
Reach out for a free, no-obligation chat or home evaluation — straight answers from a local agent who knows Winnipeg homes inside and out. — Pavel Streltsov, Real Broker Manitoba Ltd.