Tax Guide for Canadian Landlords (2025)
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Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →
Provincial licensing & certification
| Jurisdiction | Requirement |
|---|---|
| Ontario | No provincial landlord licence; municipal rental licensing in some cities (Toronto MLS, Hamilton RHL, London RUL) |
| British Columbia | Residential Tenancy Act compliance; STR registry mandatory in regulated areas since May 2024 |
| Québec | TAL (Tribunal administratif du logement) jurisdiction; short-term rental registration with CITQ |
| Federal | Non-resident landlords must register with CRA for Part XIII withholding (NR4 reporting) |
Trade-specific deductible expenses
- Mortgage interest — interest only, NOT principal (ITA s. 20(1)(c))
- Property tax, condo fees, insurance
- Repairs & maintenance — current expense (replacing a broken window). Improvements (new roof, kitchen reno) = capital, added to ACB or CCA pool
- Property management fees, advertising, leasing commissions
- Utilities — only if you (not the tenant) pay them
- Legal & accounting — except costs to acquire/dispose (those go to ACB)
- Travel — to inspect/manage property (modest, reasonable; logbook helps)
Vehicle expenses
If you own a single rental, vehicle expenses are usually denied as personal. With multiple properties, you can claim business-use % with a logbook (CRA Income Tax Folio S3-F4-C1).
GST/HST
Long-term residential rentals (continuous occupancy ≥ 1 month) are exempt supplies — you do not charge GST/HST and you cannot claim ITCs on related expenses (ETA Sch. V, Part I).
Short-term rentals (Airbnb, VRBO — under 30 days) are taxablesupplies once you cross $30,000 in any 4 consecutive quarters; you must charge GST/HST. Since Budget 2024, expenses on non-compliant short-term rentals (those failing provincial/municipal registration where required) are deniedoutright (ITA s. 67.7).
Commercial rentals are always taxable; register voluntarily to recover ITCs.
WSIB / WCB coverage
Not applicable to passive landlords. Active property managers or maintenance contractors hired carry their own WSIB/WCB.
CRA audit focus for this trade
What gets flagged
- Claiming CCA that creates or increases a rental loss — disallowed by Reg. 1100(11)
- Capital improvements expensed as repairs
- Failure to report change of use (principal residence → rental triggers deemed disposition at FMV unless s. 45(2) election filed)
- Short-term rental income not reported, or post-2024 expenses claimed on a non-registered STR
- Non-resident landlords: tenant or agent failing to withhold 25% (Part XIII) — tenant becomes personally liable
- Personal-use vacations at the rental not added back to income (FMV add-back)
Worked example
Ontario landlord — duplex, $36,000 gross rent
Gross rents $36,000
Mortgage interest ($14,500)
Property tax ($4,200)
Insurance ($1,400)
Condo / common area ($0)
Repairs & maintenance ($2,500)
Property management (8%) ($2,880)
Utilities (landlord-paid hydro) ($1,200)
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Net rental income before CCA ≈ $9,320
Optional CCA (Class 1, 4%) – capped at net income; cannot create loss
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Reported on T776 → T1 line 12600 $9,320
If non-resident: 25% Part XIII WHT
on $36,000 gross = $9,000 unless
NR6 + s.216 election filed to be
taxed on net basis instead.
Related calculators & references
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