🇨🇦 Canada Rental Income Tax Calculator
Calculate the tax on your Canadian rental income after deducting eligible expenses. This tool estimates federal and provincial tax on net rental income for landlords across all provinces.
Contexte de la Regle Regionale
Canada Taux et Regles
Entrez les valeurs
Total rent collected for the year
Only the interest portion is deductible, not principal
Annual municipal property tax
Landlord insurance premiums
Routine repairs and upkeep costs
Advertising, legal fees, utilities paid by landlord
Province where the rental property is located
Resultat
Entrez les valeurs ci-dessus et cliquez sur Calculer pour voir votre resultat.
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Avis : Avis : Ce calculateur utilise les regles publiques en vigueur a la date indiquee. Les resultats sont a titre informatif uniquement. Verifiez aupres des sources officielles. Derniere verification: 1 mars 2026.
Formule
CRA allows you to deduct reasonable expenses incurred to earn rental income. The net amount is added to your other income and taxed at your combined marginal rate. Only the interest portion of mortgage payments is deductible, not the principal.
Questions Frequentes
What expenses can I deduct from rental income?
Common deductions include mortgage interest (not the principal portion), property taxes, insurance premiums, maintenance and repairs, advertising costs, property management fees, legal and accounting fees, utilities (if you pay them), and travel to the property. Capital improvements like a new roof cannot be deducted immediately but can be depreciated over time using CCA.
Is mortgage principal deductible?
No. Only the interest portion of your mortgage payment is deductible, not the principal repayment. On a typical mortgage, the interest portion is highest in the early years and decreases over time. Your lender provides an annual statement showing the interest paid.
How is rental income taxed in Canada?
Net rental income (after deductions) is added to your other income and taxed at your combined marginal federal and provincial rate. If you earn $80,000 from employment and $20,000 net rental income, the rental income is effectively taxed at the marginal rate on $80,001 to $100,000.
Can I claim Capital Cost Allowance on a rental property?
Yes. CCA allows you to deduct depreciation on the building (not land) at 4% per year on a declining balance for most residential rental properties. However, claiming CCA reduces your cost base and increases your capital gain when you sell. Many advisors recommend against claiming CCA unless you need the deduction now.
What happens if I have a rental loss?
Rental losses from a legitimate rental operation can offset your other income, reducing your total tax. However, CRA may challenge losses if the property is not genuinely operated as a rental business or if losses persist for many years. You cannot claim CCA to create or increase a rental loss.
Do I need to charge GST/HST on rent?
Long-term residential rent (one month or more) is exempt from GST/HST. Short-term rentals (under 30 consecutive days), such as Airbnb, are subject to GST/HST if your total short-term rental revenue exceeds $30,000 in four consecutive quarters.
How do I report rental income to CRA?
Report rental income and expenses on Form T776 (Statement of Real Estate Rentals), filed with your T1 personal tax return. If you co-own the property, each owner reports their proportionate share. Keep all receipts and records for at least 6 years.
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