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Canada Federal Rental Income Tax 2026

Estimate additional federal tax from net rental income; provincial tax excluded. Change the inputs below and the estimate updates immediately.

Canada · federal income tax estimate · calendar year 2026

Provincial and territorial tax is excluded. Read the supported scope before using this estimate.

Input

Your numbers

Calculated result

Additional annual federal rental tax

CAD 3,690.00

Provincial/territorial rental income tax is excluded.

Net rental profit

CAD 18,000.00

Combined federal income tax

CAD 9,882.73

Estimate only. Verify important decisions with an appropriate professional or official source.

How to use it

A quick estimate, without the spreadsheet.

Inputs and units

Enter annual gross rent, allowable rental expenses and your other annual taxable and net income. Include eligible expense deductions, not capital mortgage repayments.

Formula

Rental profit is added to both income inputs. Additional federal tax is federal tax with rent minus federal tax on other income alone.

Worked example

CAD 24,000 rent minus CAD 6,000 eligible expenses produces CAD 18,000 net rental profit.

Assumptions and limitations

For calendar year 2026, full-year resident positive rental profits. Federal tax only; provincial/territorial tax, Quebec abatement, CCA, losses, other credits, non-resident withholding and special ownership rules are excluded. The tool does not determine which expenses are deductible.

Official references

Checked October 8, 2026 for the scope stated above.