What Is the BC Renter’s Tax Credit?

How does the BC renter’s tax credit work?

The BC renter’s tax credit is a refundable tax credit. That means you could get a tax refund if you meet the eligibility criteria, and if the total credit is more than the tax you owe in federal and provincial taxes.

BC renter’s tax credit eligibility

Who is eligible?

Beginning in tax year 2023, you can claim the tax credit if you meet certain residential and income requirements.

Residential status:

• You must have occupied an eligible rental unit (generally, that includes a single-family dwelling, an apartment, a condo, a townhouse, a basement suite, a detached suite, or a carriage house).

• You must have a tenancy agreement, license, sublease agreement, or similar arrangement—and have paid rent for at least 6 one-month periods.

• As of December 31 of the tax year, you must be a resident of BC, and meet one of the following criteria: 19 years of age or older or a parent, or cohabitating with a spouse or common-law partner.

Income thresholds:

If you make $60K a year or less, you’ll be eligible for the full $400 credit. You’re eligible for a reduced amount if you make more than $60K but less than $80K. Make over $80K? You’re out of luck on this one.

Who is not eligible?

You can’t claim the BC renter’s tax credit if:

• Your spouse or cohabitating partner has already claimed the credit

• You were an employee of a foreign government or lived with a family member or staff of a foreign government—e.g. diplomats and their family members

• You were confined to a prison or similar institution on December 31 of the tax year and were confined for periods totalling more than 6 months during the year
• You die before the end of the year
• You paid the rent to a non-“arms length” landlord, such as a family member ​
• Your paid the rent under a rent-to-own plan, or to an employer for accommodation, or for a campsite, moorage, or mobile home

Claiming rent on taxes—FAQs

Can I claim rent on my taxes?

In general, no; you cannot claim rent on your taxes. But if you qualify for the BC renter’s tax credit, you can claim the rent you paid during the tax year.  

How do I claim the BC renter’s tax credit when I file my income taxes?

Claiming the BC renter’s tax credit is straightforward. Claim the credit on Form BC479 British Columbia Credits when you file your 2023 T1 Income Tax and Benefit Return.

Where do I enter how much rent I paid on my tax return?

You can claim the BC renter’s tax credit on page 3 of Form BC479 by completing columns A–D and lines 34–42.

What information do I need in order to claim the BC renter’s tax credit?

Here’s what you need on hand when you file:

• The total amount of rent you paid in 2023 (if you lived in different locations throughout the year, include all of it on the form)
• The number of months you paid rent
• Address(es) where you rented
• Landlord name(s)
• Your adjusted family net income (AFNI)

The Canada Revenue Agency (CRA) may ask you to provide additional information to support your eligibility after you file your return. Ask your landlord for rent receipts to file with the CRA. These provide proof of payment and will help support your claim if you’re audited.

Can a student claim rent on a tax return in Canada? 

Yes; if you’re a student and meet the residential and income requirements, you may be eligible to claim the BC renter’s tax credit.

Do tenants pay tax on rent?

No; usually, tenants do not pay tax on rent. Generally, the landlord must pay tax on their rental income. They report these earnings when they file their annual income tax return and are taxed at their own marginal tax rate.

Did you know? A landlord cannot ask you for your previous tax returns as part of the rental application process. The information that landlords are allowed to request is typically limited to items directly related to your ability to pay rent. That includes employment and income verification, credit history, and references.

Start saving with the BC renters tax credit

While the high cost of rent doesn’t appear to be coming down anytime soon, the BC renter’s tax credit can help put some money back in your pocket. And we could all use that. Looking for more opportunities to lower your tax burden? Our tax experts can help.