Compliance
Navigating the Home Accessibility vs Medical Expense Credits After 2026
New tax law proposals prevent double-claiming of expenses under HATC and METC; here’s how to choose wisely and save.
By NomadicTax Research Team • 5-8 min read • August 29, 2026
## Overview: HATC vs METC
- The **Home Accessibility Tax Credit (HATC)** gives a non-refundable credit of up to $20,000 annually for eligible home renovation expenses to improve safety, mobility, or to reduce risk of harm—for seniors 65+ or those with the Disability Tax Credit (DTC) eligibility. ([budget.canada.ca](https://www.budget.canada.ca/update-miseajour/2026/report-rapport/tm-mf-en.html?utm_source=openai))
- The **Medical Expense Tax Credit (METC)** is also non-refundable and applies to medical and disability-related expenses surpassing the lesser of $2,834 or 3% of net income. METC can include home renovation costs in certain cases. ([canada.ca](https://www.canada.ca/en/department-finance/corporate/transparency/briefing-materials/2026/briefing-binder-created-on-occasion-their-appearance-standing-senate-committee-on-national-finance-on-march-10-2026.html?utm_source=openai))
## What’s Changing from January 1, 2026
- Under draft legislative proposals (Budget 2025), **expenses claimed under METC can no longer also be claimed under HATC** for the same cost. That is, no double-dipping. ([budget.canada.ca](https://www.budget.canada.ca/update-miseajour/2026/report-rapport/tm-mf-en.html?utm_source=openai))
- Definition of “qualifying expenditure” in HATC will be amended to exclude any expense included in computing METC. §118.041(4) (which allowed dual claims) is repealed. ([canada.ca](https://www.canada.ca/en/department-finance/corporate/transparency/briefing-materials/2026/briefing-binder-created-on-occasion-their-appearance-standing-senate-committee-on-national-finance-on-march-10-2026.html?utm_source=openai))
- Effective date: January 1, 2026, for expenses incurred after December 31, 2025. ([canada.ca](https://www.canada.ca/en/department-finance/corporate/transparency/briefing-materials/2026/briefing-binder-created-on-occasion-their-appearance-standing-senate-committee-on-national-finance-on-march-10-2026.html?utm_source=openai))
## Which Credit to Choose: Comparison Table
| Scenario | Prior rule (pre-2026) | New rule (2026+) | Key Considerations |
|---|---|---|---|
| Senior installs non-slip flooring (could be medical/home safety) | Could claim under both METC & HATC if meets eligibility | Must choose one; can’t claim same expense twice | Estimate tax benefit under each; HATC has $20,000 cap; METC depends on net income threshold |
| Renovation costs > threshold but no other medical expenses | Using HATC may maximize benefit because METC threshold expensive | Possibly better to allocate expense to HATC if large renovation and fewer medical expenses overall |
| Many medical expenses overall | METC may offer greater cumulative deductions before the threshold hits | If METC exceeds the threshold largely, using METC generally beneficial |
## Practical Example
Maria (age 70, qualifies for DTC) spends $10,000 in 2026 installing walk-in shower to help mobility.
- Under METC: she may need to exceed the lesser of $2,834 or 3% of net income before receiving benefit. Suppose 3% of net income is $1,500; so $10,000-1,500 = $8,500 multiplied by the federal tax credit rate (e.g. 15%) → about **$1,275 credit**.
- Under HATC: non-refundable credit rate also 15% up to $20,000 expense → $10,000 × 15% = **$1,500 credit**. Here HATC is better for this expense, unless Maria has significant medical expenses where METC yields more benefit overall.
## Action Steps for Taxpayers & Advisors
- Audit past home renovations or medical-related renovations: mapping each expense to one credit to avoid errors or audits.
- Track total eligible expenses where thresholds matter (METC), and caps matter (HATC).
- For large home renovations in 2026+, do the math: allocate big expenses to HATC likely to get full benefit; smaller ones or recurring medical items still best under METC.
- Adjust tax preparation workflows to flag overlapping expenses. Ensure forms and schedules clearly allocate.
## Compliance Considerations
- Receipts/documentation must distinguish purpose of renovation or medical functions. Keep detailed invoices showing purpose (accessibility, safety).
- Forms will be updated: check CRA forms for HATC Line 31285 and METC Lines 33099/33199.
- Consult CRA publications or Income Tax Act amendments for any changes to definitions of “qualifying expenditure”.
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**Bottom line:** Starting in 2026, Canadians must choose between HATC or METC for the same expense—not both. Thoughtful allocation and record-keeping will let you maximize benefit.