OntarioRebates and tax credits, checked October 10, 2026
Basement renovation rebates and tax credits in Ontario
Four programs still pay toward a basement renovation in Ontario in 2026: the federal Multigenerational Home Renovation Tax Credit (up to $7,000 for a suite finished this year), Toronto's Basement Flooding Protection Subsidy (up to $6,650 per property), the Home Renovation Savings Program for insulation (up to $2,300 on basement walls, slab and headers), and Whitby's additional dwelling unit incentive that reimburses permit and registration fees until December 31, 2026. The $80,000 federal suite loan and the Greener Homes Loan are gone. Each program below was read at its source today; the catch is listed next to the money.
Live in 2026
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Live
Multigenerational Home Renovation Tax Credit
14% of up to $50,000, a maximum of $7,000 for a renovation completed in 2026. Refundable.
For building a self-contained secondary unit with a private entrance, kitchen, bathroom and sleeping area so that a relative aged 65 or older, or 18 to 64 and eligible for the disability tax credit, can live with you. Claimed on line 45355 for the year the work is completed; one claim per qualifying relative, for life. A suite completed in 2025 earned 14.5%, up to $7,250. Our in-law suite page works through an example.
The catch Expenses are only eligible if the suite is legal, so the permit is part of the claim. Appliances, financing costs and your own labour do not count.
Source: Canada Revenue Agency, line 45355, Who can claim and Expenses you can claim (modified January 2026); Department of Finance, Bill C-4 lowest rate 14.5% for 2025 and 14% from 2026. canada.ca
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Toronto Basement Flooding Protection Subsidy
Up to $6,650 per property: 80% of the invoice, capped per item.
Expanded May 1, 2026 for work completed on or after November 12, 2025: a home plumbing assessment up to $500, backwater valves up to $1,600 each for two, a sump pump up to $2,250, a battery backup up to $300, and foundation drain severance up to $400. Single-family to fourplex owners in Toronto; apply within two years of installation. If the basement has ever taken water, this is the work to do before the drywall goes up.
The catch The contractor must hold a City of Toronto business licence (plumbing T94, plumbing and heating T92 or drain T87), the backwater valve needs its own permit and inspection, downspouts must be disconnected, and funding is first come, first served under annual Council approval.
Source: City of Toronto, Basement Flooding Protection Subsidy Program, page dated June 18, 2026. toronto.ca
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Home Renovation Savings Program, insulation
Basement wall insulation $900 to $1,500, slab $500, foundation header $300, plus $600 back on the energy assessment.
Save on Energy and Enbridge Gas, supported by the Ontario government, pay fixed rebates for insulation added to 100% of the basement wall area: $1,500 above R-22, $900 for R-10 to R-22, $500 for insulating at least half the slab, and $300 for headers done with the walls. A finished basement insulates those walls anyway, so the rebate lands on work already in the quote.
The catch The insulation rebates sit in the assessment stream: a registered energy advisor assesses the house before and after, and you complete two or more eligible upgrades. Book the assessment before we open the walls, not after.
Source: Home Renovation Savings Program, energy assessment required upgrades. homerenovationsavings.ca; saveonenergy.ca
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Whitby Additional Dwelling Unit Incentive
Reimburses the ADU building permit fee, registration inspection fee, curb cut fee and below-grade entrance fee, where they apply.
Funded by the federal Housing Accelerator Fund. The complete permit application must be in by December 31, 2026, the permit issued on or after April 1, 2024, and the unit registered by March 31, 2027, or the incentive is repaid. Rules for the suite itself are on the Durham legal basement apartment page.
The catch Minor variance fees are not reimbursed, a pending variance makes the application incomplete, and the Town says there will be no extensions.
Source: Town of Whitby, Additional Dwelling Units, Incentive Program. whitby.ca
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No development charges on a basement suite
Development charges do not apply to an additional dwelling unit in an existing home that meets Ontario Regulation 454/19.
Not a cheque, but money you never spend. Education development charges can still apply in some cases; ask the municipality at permit intake.
Source: Town of Whitby, Additional Dwelling Units, frequently asked questions, citing O. Reg. 454/19.
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Financing
CMHC insured refinancing for a secondary suite
Refinance to 90% of the home's as-improved value, below $2 million, over up to 30 years, for the suite only.
Spreads the cost rather than reducing it, and the only federal suite program that survived Budget 2025. Full rules on the financing page.
Source: CMHC, Refinance for Building Secondary Suites. cmhc-schl.gc.ca
What one Toronto in-law suite could stack
A worked example, not a promise: a 1,000 sq ft suite in Toronto for a parent over 65, in a house that took water once, with the energy assessment booked before demolition and the plumbing done by a City-licensed contractor. Every basement is priced from the same quote sheet, line by line: a 1,000 sq ft basement with a three-piece bathroom comes to about $67,800 before HST, and a legal suite lands at $75,000 to $110,000 or more once the Code lines are added. The programs then return the amounts below, each on its own conditions.
What is not on the list matters as much. Finishing a basement for your own family, with no suite, qualifies for the insulation rebates and, in Toronto, the flood subsidy, and nothing else. There is no general Ontario renovation tax credit in 2026. Anyone who tells you otherwise is selling something.
Example stackConditions apply to each line
Flood subsidy items are paid at 80% of the actual invoice, so the full caps need invoices of at least $2,000 per valve, $2,812 for the pump, $375 for the backup and $625 for the assessment. The tax credit is claimed on the return for the year the suite is completed.
Closed, so you can stop searching
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Canada Secondary Suite Loan Program
$80,000 at 2% over 15 years, announced for early 2025. Never launched. Budget 2025's expenditure review states the program, "which is not yet operational, will not be implemented." Source: budget.canada.ca, planned reductions by organisation, CMHC.
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Canada Greener Homes Loan and Grant
The interest-free $40,000 loan is listed as closed by Natural Resources Canada; the loan portal reports funding fully committed as of March 31, 2026. The grant closed earlier. Source: natural-resources.canada.ca.
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Ajax Build More, Get More ADU grant
The Town's intake for its Housing Accelerator Fund ADU program is closed; applicants already in the queue are directed to Town staff. Source: housing.ajax.ca.
Not listed because we could not verify it at a primary source today: the Region of Peel's "Peel Renovates" second-unit assistance. If a program is missing here, it is because we would rather leave money off the page than put a dead link on it.
The paperwork every program asks for
Every one of these programs wants the same three things: an itemized invoice, a permit, and proof the work was done by someone accountable. The quote is itemized line by line and arrives within 24 to 48 hours of the free in-home visit. Permit drawings are prepared and stamped by a licensed structural engineer, and we file them, book the inspections and close the permit. Electrical work carries its ESA inspection. The invoice you keep for the CRA is the one you got for the quote.
Sequence matters more than people expect. The energy assessment has to happen before the walls open, CMHC wants its approval before construction, and the flood subsidy wants the valve permit before the valve. Tell us which programs you intend to use at the first visit and we build the schedule around them. Related reading: the flooding rebates guide, the cost calculator and the project gallery.
Rebate questions
Is there a tax credit for finishing a basement in Ontario in 2026?
Not for an ordinary finished basement. The federal credit built for basements is the Multigenerational Home Renovation Tax Credit, worth 14% of up to $50,000 (a maximum of $7,000) for building a legal secondary unit so that a relative over 65 or an adult eligible for the disability tax credit can live with you. The separate federal Home Accessibility Tax Credit covers accessibility work for the same people, and an expense cannot be claimed under both. There is no general Ontario home renovation tax credit.
How much is the Toronto basement flooding subsidy in 2026?
Up to $6,650 per property, paid at 80% of the invoice: up to $1,600 for each of two backwater valves, $2,250 for a sump pump, $300 for a battery backup, $500 for a home plumbing assessment and $400 for foundation drain severance. The expanded program took effect May 1, 2026 and the contractor must hold a City of Toronto business licence.
Are there rebates for insulating a basement in Ontario?
Yes. The Home Renovation Savings Program pays $1,500 for insulating 100% of the basement wall area above R-22 ($900 for R-10 to R-22), $500 for insulating at least half the slab, and $300 for foundation headers done with the walls, plus $600 toward the energy assessment. The insulation rebates require a before-and-after assessment and at least two eligible upgrades.
Is the $80,000 secondary suite loan available?
No. The Canada Secondary Suite Loan Program was never launched and Budget 2025 states it will not be implemented. The route that remains is CMHC insured refinancing to 90% of the home's as-improved value for a suite.
Do I pay development charges on a basement apartment?
Not for an additional dwelling unit inside an existing home that meets Ontario Regulation 454/19. Education development charges can still apply in some cases, for example in Durham where the house itself has been occupied for less than 12 months, so confirm with the municipality at permit intake.
Bring the list. We build around it.
A free in-home visit, a free 3D design and an itemized quote within 24 to 48 hours, with the permit and the invoices every program asks for. Based in Richmond Hill, serving the GTA.