Tax Planning
How to Leverage the HATC vs METC Changes in 2026
Starting in 2026, you can no longer claim the same expense under both the Home Accessibility Tax Credit and the Medical Expense Tax Credit—here’s how to navigate the new landscape and maximize your benefits.
By NomadicTax Research Team • 5-8 min read • August 20, 2026
## What’s changing
Beginning in the 2026 taxation year, under Budget 2025, the Canadian government will **prohibit** claiming the same expense under both the **Medical Expense Tax Credit (METC)** and the **Home Accessibility Tax Credit (HATC)**. If a cost is claimed for METC, it cannot be counted for HATC too. ([canada.ca](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2025-cra-information-select-measures.html?utm_source=openai))
## Why this matters
- Many homeowners renovating for better accessibility—ramps, widened doorways, walk-in showers—have used both credits to reduce tax burden. Now you must choose one for overlapping costs.
- This could reduce the tax credit value by several hundred dollars depending on income. Planning ahead is key.
## How to plan smartly
### 1. **Audit your eligible expenses early**
List all the modifications you want to claim. Split them into **medical vs accessibility**. Examples:
- **METC**: costs to alleviate specific medical conditions (e.g., prosthetics, hearing aids, prescription upgrades).
- **HATC**: costs to allow access or safety in the home (e.g., installing a ramp for mobility, grab bars).
These categories may overlap. If a single expense serves dual purposes (say, a ramp that helps mobility and treats a medical issue), choose the credit where it yields the larger net benefit.
### 2. **Understand the tax credit rates**
Both credits are **non-refundable** and reduce tax payable. The value of each dollar claimed depends on your **lowest federal marginal tax rate**, which as of 2026 is **14%**, saving up to **$420 per person** or **$840 for dual-income families** relative to higher rates previously. ([canada.ca](https://www.canada.ca/en/department-finance/services/publications/report-impact-reducing-lowest-marginal-personal-income-tax-rate-non-refundable-tax-credits.html?utm_source=openai))
### 3. **Document everything thoroughly**
Keep invoices, doctor’s notes, and contractor quotes clearly specifying:
- the nature of the work,
- who performed it (professional vs spouse/family member),
- whether it’s core access, safety, mobility, or medical necessity.
These documents will support whichever credit you choose—and defend against CRA queries.
## Practical example
Suppose you install a walk-in shower with grab bars for safety and mobility. You also buy specialized toilet fixtures to accommodate a medical condition. Combined total cost: **$5,000**, with **$1,500** directly attributable to a doctor-prescribed medical condition.
- Claim METC for the **$1,500 medical portion**—you’d get 14% of that = **$210 credit**.
- Claim HATC for the remaining **$3,500 accessibility work**—you’d get 14% of that = **$490 credit**.
Total benefit: **$700**, assuming HATC meets its maximum rules.
## Actionable take-aways
- Before initiating renovations, consult a tax advisor to decide which credit or combination yields maximum benefit.
- Plan major home modifications in years when your income is higher, as that often increases your ability to use non-refundable credits.
- Tailor receipts and contractor statements explicitly to distinguish medical vs accessibility work.
## Bottom line
By being strategic about which portions of your expenses fall under METC vs HATC, you can still maximize tax savings—even though overlapping claims are no longer allowed. Planning ahead, detailed documentation, and understanding your marginal tax brackets will be the keys.