15 Home Improvement Projects that Can Be Tax Deductible


Are you thinking about sprucing up your home but worried about the cost? What if we told you some changes could benefit your wallet come tax time? Discover how your dream home improvement might come with a delightful tax surprise.

Installing a Ramp


If your home lacks a ground-level entrance and you or a resident requires a wheelchair, installing a ramp can improve independent living. The cost of the ramp fitting might be deductible as a medical expense.

Adding Solar Panels


Solar panels convert sunlight into clean, renewable electricity, reducing your reliance on the traditional grid. This leads to substantial savings on your electricity bills over time. The federal government offers tax incentives to homeowners to invest in solar systems. The current credit stands at 30% of the costs.

Lowering Kitchen Cabinets


Reaching for dishes or cooking supplies can be difficult for someone with limited mobility. Lowering cabinets in your kitchen can improve accessibility and help alleviate the physical limitations of a disability. It qualifies as a medical expense deduction by the IRS.

Disaster Repairs


If a federally declared disaster damages your property, the repairs might be tax-deductible, even if they improve the overall value of your home. Repairs to a roof damaged by a storm, rebuilding walls destroyed in a fire, and electrical rewiring after a flood qualify.

Grab Bars in the Bathroom

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Grab bars in the bathroom are a simple yet essential addition that can significantly improve safety and independence, especially for elderly individuals or those with mobility limitations. The IRS considers them a medical expense, and a doctor’s recommendation for grab bars can strengthen your claim.

Using Geothermal Heat Pumps


Geothermal heat pumps use the earth’s core temperature to heat and cool your home. The current tax allowance varies depending on the system’s efficiency. However, the feasibility of geothermal heat pumps depends on your geographic location and soil conditions. 

Shower Modifications for Safety


Some modifications, such as replacing a bathtub with a walk-in shower, adding a built-in shower seat to provide a comfortable place to sit, or installing non-slip flooring in the shower, can qualify. Medical expenses over 7.5% of your Adjusted Gross Income for the year fit are deductible.

Home Office Upgrades


Some strategic home office improvements qualify for tax deductions, helping offset the expense. All repairs and modifications to your office space can be deducted in full. Projects that affect the whole property, like a cooling system, are partially deductible.

Installing Lifts


For homes with raised entrances, a porch lift allows individuals who use wheelchairs, scooters, or walkers to access their homes independently. Stair lifts can be installed within the house to comfortably use multiple floors. Vertical lifts transport mobility devices between different levels and are also tax-deductible. 

Widening Doorways


Standard doorways might be too narrow for wheelchairs or walkers to maneuver comfortably. Widening doorways can significantly improve accessibility and allow for easier movement with aids. For the cost to be deductible, the modifications must be explicitly installed to address a medical condition or disability that affects the ability to move.

Buying New Central Air Conditioners

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High-efficiency central air conditioners use significantly less energy to cool your home than older models. They result in lower electricity bills and a reduced environmental footprint with a tax credit. However, the total limit for an efficiency tax allowance in one year shouldn’t exceed $3,200.

Relying on Solar Water Heaters


They use solar panels to capture the sun’s heat and transfer it to your water supply, reducing the energy needed to heat your water with a traditional heater. Like solar energy systems, the federal government offers a tax credit of 30% of the installation costs.

Wind Turbines

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Small wind turbines can generate electricity for your home using wind power. While unsuitable for all locations, they can be valuable to an energy-efficient home in areas with consistent winds. Depending on the capacity of the system, they can be tax deductible.

Changes for Tenants


Repairs like fixing a leaky tap or a broken window are deductible. However, upgrades are deductible over 27.5 years with depreciation because they’re considered capital improvements. These include upgrading the kitchen cabinets or converting a basement into a finished living space.

Adding Insulation to Walls


Proper insulation acts as a barrier, keeping warm air in the winter and hot air out in the summer. A well-insulated home has a more consistent temperature, creating a more comfortable living environment. The current allowance is 30% of the cost of qualified insulation materials and installation.


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