Rental Income Tax Calculator
Calculate the tax on your rental property income after deducting operating expenses, mortgage interest, and Capital Cost Allowance (CCA).
Rental Property Details
Rental Income Tax Summary
Effective Tax Rate
-10.0%
After-Tax Cash Flow
$8,090
How it works: Rental income is added to your other income and taxed at your marginal rate. You can deduct operating expenses, mortgage interest, and Capital Cost Allowance (CCA). CCA is 4% of the building value (excluding land) for Class 1 residential properties. Rental losses can offset other income in Canada.
Rental Income Tax in Canada
Rental income in Canada is taxed at your marginal rate. You can deduct reasonable expenses incurred to earn the rental income, including property taxes, insurance, repairs, management fees, mortgage interest, and CCA.
Capital Cost Allowance (CCA): Residential rental buildings fall under Class 1 with a 4% declining balance rate. CCA is calculated on the building value only — land is not depreciable. Note that CCA is a non-cash deduction that reduces your tax but does not affect actual cash flow.
Rental losses: If your deductible expenses exceed rental income, the loss can be used to offset your other income sources, reducing your overall tax bill.
Sources
Last updated April 2026. Reflects 2026 tax year rates.
Related Calculators
Related Calculators
Land transfer tax
LTT/PTT by province including first-time buyer rebates
Principal residence exemption
PRE on sale of your home including partial years
Deemed disposition at death
Final-return capital gains + RRSP inclusion + probate with spousal rollover comparison
All calculators
Browse all Canadian tax and property calculators