Tax · Rental property
Rental income tax calculator (Canada).
Rent you collect is taxed as income, but only the net after expenses and capital cost allowance. Add it to your other income to see the extra tax it causes.
Net rental income is added to your other income and taxed at your marginal rates: 14% to $58,523, then 20.5%, 26%, 29% and 33% federally for 2026, plus your province. Capital cost allowance (CCA) can bring net rent down to zero but cannot create or increase a rental loss.
Inputs
Result
Enter your rent and expenses, then press Calculate.
How the tax on rental income is worked out
CRA taxes rental income as net income: gross rent minus the expenses you incurred to earn it. CCA can then reduce net rent, but only down to zero: “You cannot use CCA to create or increase a rental loss.” This calculator caps your CCA claim at net rent before CCA and tells you how much was disallowed.
Your share of the net figure is added on top of your other taxable income. The federal tax shown is the difference between the tax on (other income + rental) and the tax on other income alone, using the 2026 brackets. The provincial figure is your own marginal provincial rate times the net rent, because provincial brackets differ by province and change every year. Credits, the OAS clawback and surtaxes are not modelled.
| 2026 federal taxable income | Rate |
|---|---|
| First $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
This calculator adds no CPP. CRA treats rent as property income when you provide basic services only, and warns that “The more services you provide, the greater the chance that your rental operation is a business,” in which case different rules apply and this tool is not the right one.
Sources, retrieved October 2026: CRA — Current year tax rates and income brackets (2026); CRA guide T4036, Rental Income.
Frequently asked questions
How is rental income taxed in Canada?
You report gross rent, subtract the expenses of earning it (and any capital cost allowance you choose to claim), and add the net amount to your other income. It is taxed at your marginal federal and provincial rates. Co-owners each report their share.
Can I claim CCA on a rental property?
Yes, CCA is optional, but you cannot use it to create or increase a rental loss. It also creates recapture when you sell for more than the remaining UCC. Run the numbers in the rental CCA schedule.
Do I pay CPP on rental income?
This calculator adds none. CRA says you are usually earning income from property if you rent space and provide basic services only. If you provide enough services that the rental becomes a business, different rules apply.
Why do I enter my own provincial rate?
Provincial brackets and surtaxes differ and change each year. Rather than show a number that may be stale, this tool asks you to copy your rate from the CRA rates page.
Estimate only
Estimate only. Uses federal brackets with no credits and a single flat provincial rate you enter, so it will differ from your return. It does not model the OAS recovery tax, Ontario surtax or health premium, or Quebec. Confirm your figures with CRA or a tax professional.