Claiming Rent on Taxes | Rent Tax Return Canada | Accountor CPA (2024)

Rent prices across Canada have skyrocketed in recent years. If you pay rent for your home, it is likely the largest expense you have each month. Whether you are renting a room, an apartment, a condo, or a whole house, rent payments in Canada are significant expenses. Can you claim rent on your taxes as a deduction or credit?

Depending on your tax situation and province of residence, you may be able to claim rent on income tax in Canada. Here, the team of tax experts at Accountor CPA explores the options for claiming rent on income tax.

For detailed advice about how rent tax returns apply to your situation, contact Accountor CPA.

How to Claim Rent On Tax Return

As a Canadian looking to claim rent in their tax return, you have two options.

First, some provinces offer benefits that take into account your rent paid. There are three provinces that offer tax benefits or credits that you can claim your rent within: Ontario, Manitoba, and Quebec.

Second, self-employed individuals may be able to claim rent paid on their taxes if they meet certain criteria.

As long as you meet the eligibility for these credits, you will be able to claim rent on your tax return in Canada. Otherwise, you are not able to claim rent on your tax return.

Rent Receipts on Tax Return

There are some documents that you should prepare before you claim rent on your income tax.

• Landlord’s name and contact information
• The address rented at
• The dates lived at the address
• Dates of rent paid
• Total amount of rent paid
• A dated landlord’s signature verifying the information

If a tenant leased at multiple addresses in the tax year, they need this information for each location.

Not all tax programs require you to submit rent receipts when claiming rent on your income tax. However, it is always recommended to have this documentation and rent receipts ready should you be reassessed or audited by the CRA (Canada Revenue Agency).

Claiming Rent on Taxes in Ontario

If you live in Ontario, you may be eligible for the Ontario Energy and Property Tax Credit (OEPTC), which is part of the Ontario Trillium Benefit (OTB). Using this tax credit is how to claim rent on taxes in Ontario.

This tax credit is based on your adjusted net family income and is reduced when your salary or wages exceeds certain amounts. You may qualify for the energy portion, the property tax portion, or both.

Though not explicitly claiming rent on taxes in Ontario as an expense, your rent paid throughout the year is one aspect used to help calculate this benefit.

Certain rules do apply to claiming rent on taxes in Ontario as part of the Ontario Trillium Benefit:

• Rent payments that are not declared by your landlord on their income tax are not eligible
• Only one spouse or common-law partner living together can apply for the OTB
• You are eligible if you are sharing accommodations with roommates. You must only declare the rent you pay as your portion, but all roommates are eligible to apply.

Using the OEPTC and OTB in Ontario

To qualify for this benefit, you must be living in Ontario at the beginning of the payment month, plus at least one of the following:

• 18 years of age or older
• currently or previously married or in a common-law relationship
• living or previously lived with your child

and the previous year, you:

• rented or paid property tax for your main residence
• lived on a reserve and paid for your home energy costs
• lived in a public long term care home (e.g., a seniors’ home) and paid an amount for your accommodation

How much you can receive depends on a number of factors, including how much you paid in rent in Ontario in the given tax year, your age, and your income.

Claiming Rent on Income Tax in Manitoba

An individual can claim rent paid on income tax if they are residents of Manitoba. Manitoba offers the Education Property Tax Credit to eligible individuals. Similar to in Ontario, an individual is not explicitly claiming rent paid for a credit, but rather it is taken into account when calculating this provincial credit.

The credit is provided to help cover the school taxes paid, or a portion of rent either directly on a municipal property tax statement or through an income tax return.

There are special rules and considerations for this credit and claiming rent paid:

• Only one spouse is able to claim this credit
• If you share accommodations, such as roommates, only one roommate is eligible to claim the tax credit for the full amount of rent paid

Manitoba’s Education Property Tax Credit

Renters in Manitoba can claim their rent paid on their tax return using the Education Property Tax Credit.

If you rent an apartment, condo, or house, you can claim 20% of your rent paid up to a maximum of $525. Simply use Form MB479, Manitoba Credits, to detail rent paid and determine if you are eligible.

Rent for Tax Return in Quebec

Quebec offers the Solidarity Tax Credit (Crédit d’impôt de Solidarité) as a refundable credit for low and middle income families. There are three components to this credit:

• Housing
• QST
• If individuals are living in northern villages

An individual may qualify for all or some of these components. You must be at least 18 years old and a Canadian citizen. When claiming this credit, you can indicate your addresses where rent was paid and the total amount paid in the given tax year. The amount you are eligible for depends on your income, expenses, and location in the given year.

Claiming Rent Paid on Tax Return for Self-Employed

If you are self-employed and use part of your home for business purposes, or an employee required to have a home office as a condition of your employment, a portion of your monthly rent can be claimed on your tax return in Canada as an employee expense.

Your deduction for allowable rent claimed on your tax return is based on the size of your home office in relation to your residence. For example, if 20% of your home is used to work or run your business, then you can claim 20% of your rent as a business expense.

For employees who work from home (those not self-employed), you will need this indicated on a signed T2200 by your employer.

Can a Student Claim Rent on Tax Return in Canada?

A student cannot claim rent on a tax return in Canada as a deduction or credit.

However, students in Ontario, Manitoba, and Quebec may be eligible to claim their rent expenses as part of the programs discussed. Consult with a qualified tax advisor to determine your eligibility if you are a student paying rent in Canada.

Get Help Claiming Rent on Income Tax in Canada

If you are a resident of Ontario, Manitoba, or Quebec, or are self-employed, you may be able to claim rent paid on your tax return. At Accountor CPA, our tax experts can help you file your income tax return to claim rent if you are eligible. Whether you are seeking help with a tax return for apartment rent, house rent, or renting a room, we can help.

We work with individuals across Canada to file income tax returns to help them keep more of their hard earned money. We are also experts at finding other deductions and tax credits you may be eligible for that could otherwise go unmissed.

Do not let an expense as significant as rent go unclaimed if you are eligible. Contact Accountor CPA today for a free consultation and learn how much you could be claiming as rent on your tax return this year.