Rental income tax calculator
Estimate taxable rental income after common expenses while flagging recordkeeping needs.
Estimate taxable rental income after common expenses while flagging recordkeeping needs.
Estimate taxable rental income after common expenses while flagging recordkeeping needs.
Estimate the tax on rental income from a long-term tenant or short-term Airbnb. Includes deductible expenses, optional CCA, and your provincial marginal rate. Pair with our income tax calculator, capital gains calculator, and marginal rate calculator.
After-tax cash flow
$0
Tax owed on rental income
$0
Gross rent
$0
Total expenses
$0
CCA claimed
$0
Net taxable rental income
$0
Marginal tax rate
32.0%
| Expense | Notes |
|---|---|
| Advertising | Listing fees, rental signs, photography |
| Insurance | Property insurance for rental units |
| Mortgage interest | Interest portion only — not principal |
| Office expenses | Stationery, software for managing property |
| Legal & accounting | Tenant disputes, T776 prep, lease drafting |
| Property management fees | Paid to a third-party manager |
| Maintenance & repairs | Painting, fixing leaks, appliance repair (NOT improvements) |
| Salaries & wages | Cleaners, building staff |
| Property tax | Municipal property taxes on rental units |
| Travel | To collect rent, supervise repairs (NOT to inspect) |
| Utilities | If you (not tenant) pay heat/water/electric |
| Condo / strata fees | For rented condo units |
| Class | Rate | Description |
|---|---|---|
| 1 (4%) | 4% | Most rental buildings (post-1987) |
| 1 (6%) | 6% | Eligible non-residential buildings (post-March 2007) |
| 8 (20%) | 20% | Furniture, appliances inside the rental unit |
| 12 (100%) | 100% | Tools/items under $500 |
Calculate the tax owed on Canadian rental income for 2025. Includes deductible expenses (mortgage interest, property tax, insurance, repairs, condo fees, professional fees) and shows your net rental income at federal + provincial marginal rates.
Q
How is rental income taxed in Canada?
A
Rental income is taxed at your full marginal rate (federal + provincial) after deducting eligible expenses on Form T776. Common deductions: mortgage interest, property tax, insurance, condo fees, advertising, repairs, utilities, and property management. Net losses can reduce your other taxable income — but CRA scrutinizes claims that show consistent losses.
Last reviewed 2026-04-21