Maytree calls on federal government to create a Canada Renters Credit to help millions of low-income renters afford their homes
New policy brief proposes a direct monthly credit through the tax system – reaching an estimated 2 million households
As the federal government develops its next National Housing Strategy, Maytree is releasing a new policy brief calling for the creation of a Canada Renters Credit: a federal refundable tax credit that would provide monthly support directly to low-income renters across Canada.
The brief, written by Maytree’s Manager of Policy Sam DiBellonia, recognizes that Canada’s housing crisis is as much an income problem as a supply problem. The 2024 national point-in-time count of homelessness found that, of nearly 60,000 people surveyed, most cited not having enough income as the reason they lost their housing. Plus, most people fall into core housing need because their housing costs too much compared to their incomes.
“Many low-income households are struggling to pay market rents and cannot wait years for supply-side programs to build the next generation of deeply affordable housing,” said DiBellonia.
Modelled on the delivery approach of the Canada Child Benefit, the Canada Renters Credit would be administered through the Canada Revenue Agency – with no applications, no referrals, no waitlists, and one consistent national standard regardless of where a person lives. Maytree’s recommended option would reach an estimated 2 million households at an annual cost of approximately $4.72 billion.
The brief also proposes a path forward for the existing Canada Housing Benefit (CHB), which has supported roughly 300,000 households but funding is set to expire at the end of the 2027/28 fiscal year. Maytree recommends that the federal government:
- Launch the Canada Renters Credit starting in the 2028 tax year
- Refocus the CHB – working with provinces and territories – on ending homelessness
Because poverty disproportionately affects racialized people, immigrants, and people with disabilities, these groups would benefit disproportionately from the credit.