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CRA

NR4

Statement of Amounts Paid or Credited to Non-Residents of Canada

The NR4 is the CRA information slip issued to non-residents of Canada who received Canadian-source income with Part XIII tax withheld at source. For non-resident landlords, it documents gross rent paid (box 16) and Canadian tax withheld (box 17 — typically 25%) for the calendar year. Issued by your Canadian property manager or resident agent by the last day of March.

⚠️ Important Disclaimer

This content is for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws change frequently — always verify with the CRA and IRS or consult a qualified cross-border tax accountant before making decisions.

Filing deadline

Last day of March following the calendar year

Who must file

Non-residents of Canada receiving rental income from Canadian property; agents and property managers acting on behalf of non-residents

Official resourceCRA official page →

Key Takeaways

  • NR4 documents gross Canadian-source income paid to non-residents plus the 25% Part XIII tax withheld at source — issued by the Canadian payer by March 31.
  • Default Part XIII withholding is 25% of GROSS rent. On $24,000 annual rent that's $6,000/year — usually far more than your actual Canadian tax on net income.
  • File Form NR6 before January 1 to switch withholding to 25% of NET rent (rent minus expected expenses) — typically cuts monthly withholding by 60-70%.
  • File a Section 216 return at year-end to reconcile actual tax owed against withholding and recover any over-withheld amount — deadline is 2 years after year-end.
  • The income code on NR4 box 14 should be 11 (rental of real property). Other codes change the tax treatment.

What is the NR4 slip?

NR4 — formally Statement of Amounts Paid or Credited to Non-Residents of Canada — is a CRA information return that serves the same role as a T4 or T5 for residents. The slip documents Canadian-source income paid to a non-resident plus any Part XIII tax withheld at source.

For non-resident landlords, the NR4 reports gross rent paid during the calendar year and the 25% Part XIII withholding that your Canadian payer (typically a property manager or resident agent) remitted to CRA each month on your behalf.

Who gets an NR4?

Any non-resident of Canada receiving Canadian-source income subject to Part XIII tax. For our purposes specifically:

  • Non-resident landlords with Canadian rental property — receive an NR4 from their property manager or appointed resident agent
  • Snowbirds who became non-resident for tax purposes but still own a Canadian rental
  • US persons (citizens or green card holders) with Canadian rental income — get an NR4 plus cross-border reporting obligations

If you live in Canada and receive Canadian rental income, you get a T776 income statement instead, not an NR4.

How to read the NR4 — every box that matters

  • Box 12 — Country code. Your country of residence (USA, etc.). Used for treaty determinations.
  • Box 14 — Income code. Code 11 = real property rental income. Wrong code = wrong tax treatment, so verify.
  • Box 15 — Currency code. Almost always CAD for Canadian rental income.
  • Box 16 — Gross income. Total Canadian dollars of rent paid to you for the year before withholding. Cross-check against your own records.
  • Box 17 — Non-resident tax withheld. The 25% Part XIII amount remitted to CRA on your behalf.
  • Box 27 — Exemption code. Treaty rate or exemption code if applicable.

Verify all key boxes against your own records the moment the NR4 arrives. Errors are common and easier to correct in March than during April filing.

Filing deadlines

NR4 issuance: last day of March following the calendar year (CRA guide T4061). Your 2025 NR4 lands by March 31, 2026.

Section 216 return (yours to file): within 2 years of the end of the tax year. Most landlords file with their normal spring filing.

NR6 (next year's withholding reduction): file before January 1 of the year you want it to apply.

What to do with your NR4

The NR4 is the foundation of your Canadian rental tax workflow. Three things to do:

  1. Verify box 16 against your records. Discrepancies are the #1 cause of CRA review.
  2. File a Section 216 return. Switches taxation from 25% on gross to graduated rates on net rental income. Typically recovers thousands in over-withheld tax.
  3. Claim the foreign tax credit on your home- country return. The Canadian tax actually paid (per Section 216, not the gross withholding) becomes a foreign tax credit on US Form 1116 or your home country's equivalent.

Frequently asked questions

When does my property manager issue the NR4?

By the last day of March following the calendar year (CRA guide T4061). Your 2025 NR4 should arrive by March 31, 2026. If your manager hasn't issued it by early April, follow up — they have a filing obligation with CRA on the same deadline.

What if the gross rent on box 16 doesn't match my records?

Contact the issuer (your property manager or resident agent) immediately and request a corrected NR4. CRA reconciles your Section 216 filing against the NR4 they received, so a mismatch triggers review. Easier to correct as soon as the slip arrives than after filing.

Can I file my Section 216 return without the NR4?

Not advisable — the NR4 box 17 figure is what you claim as Part XIII tax already remitted on your Section 216 return. Without the NR4, you'd be estimating, and the CRA's review will flag the discrepancy. Wait for the NR4 (it's required to be issued by March 31).

What if I never had Part XIII withholding (my tenant paid me directly)?

You still owe the 25% Part XIII tax. CRA holds both the payer (tenant) and the recipient (you) liable when withholding doesn't happen. Voluntarily catching up via the Voluntary Disclosures Program before CRA contacts you typically waives penalties. Going forward, appoint a Canadian resident agent (any property manager) to handle withholding properly.

Do I still need to file in Canada if Part XIII was correctly withheld?

Only if you want to file Section 216 to recover over-withheld tax — which almost every landlord with real expenses should do. Without a Section 216 return, the 25% gross withholding is the final word and you pay materially more than your actual net-income tax would be. For most landlords, the Section 216 refund is $2,000-5,000+ per year.

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