GST/HST on Rental Income
Is your Canadian rental income GST/HST-taxable? The short answer: long-term residential rent is exempt, but short-term (Airbnb) and commercial rent are taxable. Pick your situation to see exactly where you stand.
Exempt — you do NOT charge GST/HST
Long-term residential rent (periods of one month or more) is an exempt supply. You don't add GST/HST to the rent, you don't register for it based on this income, and you generally cannot claim input tax credits on your rental expenses. The GST/HST you pay on those expenses is simply part of your deductible cost.
Federal GST/HST only, for a common rental. It doesn't cover mixed-use, substantial-renovation, or new-housing situations. Confirm with a cross-border CPA before you register or charge tax.
The rule in one paragraph
GST/HST turns on what you rent and for how long, not on who you are. Long-term residential rent (a home rented for a month or more) is an exempt supply — no GST/HST on the rent, and no input tax credits on your expenses. Short-term accommodation (under one month — Airbnb, cottages, nightly stays) and commercial rent are taxable. You only actually charge and remit the tax once you cross the $30,000 small-supplier threshold and register. Rates run from 5% GST in the west to 13-15% HST in the east, with Quebec adding 9.975% QST on top.
Frequently Asked Questions
Do I charge GST/HST on residential rent?
No. Long-term residential rent — a house, apartment, or condo rented as a home for one month or more — is an exempt supply. You do not add GST/HST to the rent, and you generally cannot claim input tax credits (ITCs) on your rental expenses. The GST/HST you pay on those expenses just becomes part of your deductible cost.
Is short-term / Airbnb rental income taxable?
Yes. Accommodation supplied for continuous occupancy of less than one month — Airbnb, VRBO, cottage or nightly stays — is a taxable supply, not exempt. If your total taxable revenues exceed $30,000 over four consecutive calendar quarters, you must register for GST/HST and charge it; below that you are a small supplier and registration is optional.
What is the small supplier threshold?
$30,000 in taxable revenues over four consecutive calendar quarters (or in a single quarter). At or below it, you are a 'small supplier' and GST/HST registration is optional. Above it, registration becomes mandatory. Exempt residential rent does not count toward this threshold.
What are the GST/HST rates by province in 2026?
GST is 5% in Alberta, BC, Manitoba, Saskatchewan, Quebec, and the territories. HST provinces: Ontario 13%, Nova Scotia 14% (reduced from 15% effective April 1, 2025), and New Brunswick, Newfoundland and Labrador, and Prince Edward Island at 15%. Quebec adds QST at 9.975% on taxable supplies (about 14.975% combined) on top of the 5% GST.
Can I claim input tax credits on my rental expenses?
Only if you make taxable supplies and are registered. A long-term residential landlord makes exempt supplies, so no ITCs — the GST/HST on repairs, management fees, and supplies is a deductible cost, not recoverable. A registered short-term or commercial landlord charges GST/HST and can claim ITCs on related expenses.
I'm a non-resident landlord — do the same rules apply?
The exempt-vs-taxable rules are the same, but non-resident registration has extra wrinkles (security deposits, a Canadian fiscal representative in some cases, and how 'carrying on business in Canada' is assessed). If you run short-term or commercial rentals in Canada as a non-resident, get a cross-border CPA to handle registration.
⚠️ Important Disclaimer
This content is for informational purposes only and does not constitute legal, tax, accounting, 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.
BorderBird is a rental-management and record-keeping tool. It is not an accountant and does not provide accounting, tax, or legal advice.
Rates and rules reviewed against CRA guidance and current for the 2026 tax year — last reviewed August 2026. Tax rules change; confirm against the source before filing.
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