Are Rent Payments Tax Deductible?

In most instances, rent payments are not tax deductible. However, if you qualify for the Ontario Energy and Property Tax Credit (OEPTC),  a subgroup of the Ontario Trillium Benefit, you may be eligible to claim your rent payments for a tax-free credit. This credit is dependent on where you live on the first of each month, so if you haven't lived in Ontario for the full tax-year, you may still be eligible to receive credit based on the months you did live in Ontario.

 

Qualifications

In order to qualify for the OEPTC, you must have been a resident of Ontario on December 31st of the previous year, and one of the following must be applicable before June 1st:

  • You are older than 18 years old

  • You are currently or previously were married or in a common law relationship

  • You are a parent who lives or previously lived with your child

 

Additionally, one of the below must have applied to you in the previous year:

  • For your primary residence, you paid property tax

  • For your primary residence, you paid rent, and your landlord paid property taxes

  • You lived on a reserve and incurred energy costs for the home

  • You lived in a public, long-term care home and paid accommodation expenses

 

Credit Amounts

For renters, the credit amounts will be dependent on your income,  age, marital status, how much rent you paid, and whether you lived in a designated college, university, private school residence or long-term care home in the previous year.

 

To calculate your credit amount, the CRA offers OEPTC calculation sheets available for each tax year.

 

Receiving the Credit

If you are eligible for the OEPTC, you will receive payment with your Ontario Trillium Benefit payment. These payments are typically paid in twelve monthly installments, but in some cases, you could receive the annual sum in a single payment. This will be dependent on the amount of credit you've qualified for.

 

Kira Cox