How Saskatchewan’s Home Renovation Tax Credit Can Support Homeowners

Owning a home often comes with a long list of projects and renovations. Whether it is updating a bathroom, tackling repairs or finishing a basement, renovations can be a costly expense for homeowners. Thankfully for Saskatchewan residents, the Home Renovation Tax Credit (HRTC) offers a way to save some money while improving a home’s value. 

What is the Home Renovation Tax Credit?

The Home Renovation Tax Credit (HRTC) is a personal income tax credit for Saskatchewan homeowners, designed to help offset some of the costs of home improvement projects. It is now a permanent program.

Under this non-refundable tax credit, Saskatchewan homeowners may save up to $420 annually in provincial income tax by claiming a 10.5 per cent tax credit on up to $4,000 of eligible home renovation expenses.

Eligible expenses include the cost of labour and professional services, building materials, fixtures, equipment rentals, and permits. Seniors may save up to $525 annually based on maximum eligible home renovation expenses of $5,000.

What Improvements Qualify?

Many common renovations qualify for this tax credit including:

• Interior and exterior renovations such as kitchens and bathroom upgrades, flooring replacements and painting
• Structural improvements like finishing basements or adding on to an existing residence
• Energy-efficient upgrades such as new windows, doors, adding insulation and updating HVAC systems

Routine repairs and maintenance as well as appliances and furniture don’t typically qualify. 

How to Take Advantage of the HRTC

Homeowners can claim the HRTC by submitting detailed documentation and invoices for qualifying projects. Documents should clearly outline both the cost of materials as well as the labour costs, dates of purchases and the information for all vendors and contractors. At tax time, the credit can be claimed directly on the Saskatchewan income tax return.

This tax credit allows Saskatchewan homeowners to see the benefits of their renovations both now and in the future. Updating things like old windows, increasing insulation and replacing poorly fitted doors can help increase the energy-efficiency of the home, reducing heating costs and increasing the long-term value of the home. 

Homeowners considering significant projects should speak with a qualified mortgage broker to create a comprehensive plan that supports their financial goals.