How to Claim Rent on Taxes in 2022 - 2023

Rent, a major part of people’s expenses living in Canada, has increased recently. Be it a room, an apartment, a condo, or a whole house, rent prices are very high in Canada. However, the real question is whether you can claim rent on your taxes as a deduction or credit. 

The answer depends upon the tax situation and province of residence of an individual. 

This article defines in detail the process in different states of Canada. 

How to Claim Rent on a Tax Return

There are two options to claim rent on a tax return in Canada. 

The first is considering the benefits that are offered in some provinces that are related to the rent payment. There are only three provinces that provide such benefits and tax credits that you can claim. These provinces include Ontario, Manitoba, and Quebec. 

The second is the criteria offered to self-employed individuals that can determine their eligibility for claiming rent on their taxes. Therefore, you can claim rent on the tax if you fulfill the criteria; otherwise, you would not be able to claim rent on the tax return. 

Rent Receipts on Tax Return

To claim rent on income tax, you must prepare certain documents for submission, which are as follows:

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

If a tenant has leased properties at various locations in the tax year, the above information will be required for each address. Nonetheless, rent receipts are not a requirement in every tax program. It is better to have all the documentation done in case of reassessment or audit by the CRA (Canada Revenue Agency).

Claiming Rent on Taxes in Ontario

If you live in Ontario, you can avail of the tax credit through the Ontario Energy and Property Tax Credit (OEPTC), a part of the Ontario Trillium Benefit (OTB)

The tax credit is calculated based on the adjusted net family income. It is reduced if the salary exceeds a certain amount. You may either qualify for the property tax, energy, or both.

However, the rent paid throughout the year is one factor that assists in calculating the benefit.

Certain rules apply on claiming such benefits:

  • If the landlord does not declare the rent payments on their income tax, you will not be eligible.
  • Only one spouse or common-law partner living together can apply for the OTB.
  • If you are sharing accommodation with roommates, you are only eligible for a portion of the rent you are paying. However, all roommates are eligible to apply.

Using OEPTC and OTB in Ontario

You must be living in Ontario at the beginning of the payment month to qualify for this benefit and must have at least one of the following:

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

In the previous year, you:

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

The amount of the benefit depends on various aspects, including the rent payment, age, income, etc. 

Claiming Rent on Income Tax in Manitoba

For residents of Manitoba, the Education Property Tax Credit program exists. The credit is to assist with school taxes and a portion of rent. The tax amount is just a factor for calculation, just like in Ontario. Nonetheless, there are certain rules, like:

  • Only one spouse is eligible 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.

You could claim 20% if the rent is paid up to a maximum of $525. 

Rent for Tax Return in Quebec

Quebec has a Solidarity Tax Credit program for low- and middle-income families. It entails three components: housing, QST, and whether the individuals are living in northern villages or not. To be eligible, you must be at least 18 years old and a Canadian citizen. The amount of the credit depends on income, expenses, and location. 

Claiming Rent Paid on Tax Return for Self-Employed

For self-employed individuals, part of the rent is eligible for a tax credit if the space in the home is used as an office or for business purposes. The deduction is based on the size of the space used. 

Can a Student Claim Rent on a Tax Return in Canada?

Rent on a tax return cannot be claimed if you are a student unless you live in Ontario, Manitoba, or Quebec, with rent expenses already discussed in the program. 

Written By:
Salman Rundhawa
Salman Rundhawa is the founder of Filing Taxes. Salman provides valuable tax planning, accounting, and income tax preparation services in Toronto, Mississauga, Oakville, and Hamilton.

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