Calculate net rental income, deductible expenses, CCA, and tax owing on your Canadian rental property — 2025 rates.
Industry avg: 3–7%
For accurate marginal rate
100% = dedicated rental, 50% = basement suite
Mortgage Interest
Interest portion only — not principal
Property Tax
Annual municipal property tax
Insurance Premiums
Landlord/rental property insurance
Repairs & Maintenance
Must be to restore, not improve
Utilities
If paid by landlord (heat, hydro, water)
Property Mgmt Fees
Professional management company fees
Advertising
Rental listings, signage, etc.
Legal Fees
Lease preparation, tenant disputes
Accounting Fees
Bookkeeping, tax preparation
Landscaping / Snow
Yard maintenance, snow removal
Condo Fees
Monthly strata/condo maintenance fees
Travel Expenses
To collect rent or manage property
Other Expenses
Any other eligible rental expenses
Optional — claim depreciation on the building structure. Cannot create a rental loss.
Enter your rental income above
Your net income, deductions, and tax owing will appear here.
Rental income in Canada is fully taxable at your marginal rate — but landlords can deduct a wide range of expenses to significantly reduce the taxable amount. Understanding what's deductible and how to claim CCA can make a major difference in your tax bill.
Rental income is reported on Form T776 (Statement of Real Estate Rentals), attached to your T1 personal tax return. You report gross rental income, then deduct eligible expenses to arrive at net rental income or loss. Net rental income is added to your other income and taxed at your marginal rate.
Capital Cost Allowance (CCA) lets you deduct a portion of the building's cost each year as depreciation. Most residential rental buildings use Class 1 at 4%. In the first year you own the property, the half-year rule limits your CCA to half the normal amount. Importantly, CCA cannot create or increase a rental loss — it can only reduce net income to zero.
If your allowable expenses exceed your rental income, you have a rental loss. This loss can generally be deducted against your other income sources — reducing your overall tax. However, CRA may challenge losses if the rental operation appears to have no reasonable expectation of profit.
Long-term residential rentals (month-to-month or leases) are exempt from GST/HST — you do not charge HST on rent and cannot claim input tax credits on expenses. Short-term rentals (Airbnb, VRBO — under 30 days) are taxable supplies and may require GST/HST registration if revenues exceed $30,000.
Calculations use 2025 federal and provincial tax brackets. CCA rates from CRA Schedule II. This is an estimate — actual tax depends on all income sources, credits, and deductions. Consult a tax professional for complex rental situations. Not tax advice.