GST/HST Implications on Rental Property

Here are some titbits of knowledge regarding the GST/HST implication of rental properties. These tips will help investors save on taxes and learn more about rental properties. 

Residential Rental Income

  • You do not need to file a GST/HST return for rental income. Landlords are not permitted to charge a sales tax on rent and any tax paid on purchases and expenses related to your rental activities cannot be claimed as Input Tax Credits (ITC).

New Residential Rental Property (NRRP) Rebate


GST/HST paid on the purchase of newly constructed properties may qualify for the NRRP rebate. 

  • For residential properties, the HST rebate has already been included in the purchase price. Owners do not need to apply for it.
  • For investment properties, owners will pay the full amount of HST on closing date and apply for the rebate if the first occupant of the property is a tenant and the owner provides a one-year lease agreement with a tenant.