Notice to the reader
This measure has received Royal Assent.
For the 2022 and subsequent taxation years, the Budget proposes to increase the amount used to calculate the HBTC to $10,000, which would provide a tax credit of up to $1,500 to eligible home buyers.
1. What are the current rules?
First-time home buyers who acquire a qualifying home can claim a non-refundable tax credit of up to $750 . The value of the HBTC is calculated by multiplying $5,000 by the lowest personal income tax rate (15% in 2022).
2. What is changing?
The proposed changes would increase the amount used to calculate the HBTC to $10,000, which would provide a tax credit of up to $1,500 to eligible home buyers.
All other rules regarding the credit and the increased limit remain the same.
3. Where can I get more information on the current HBTC?
For more information, go to Line 31270 - Home buyer’s amount.
4. Where can I get more information on the change?
Check online at Canada.ca regularly for updated forms, policies, guidelines, questions and answers, and guidance.
In the meantime, please consult Finance Canada's Budget 2022 documents for details.
Original Article taken from Canada.ca - LINK
