Starting in the 2023 tax year, a $400 tax credit is available to individuals who pay rent and occupied a rental unit in B.C. under a tenancy agreement, licence, sublease agreement or similar arrangement for at least six one-month periods.
For the 2023 tax year, the maximum renter’s tax credit is $400. The credit is reduced by 2% of the amount by which 2023 adjusted income exceeds $60,000. The credit is reduced to zero at $80,000. The income thresholds will be indexed to inflation for future filing periods.
To claim the credit on your personal tax return, you will need to include the rental address, annual rent paid, months rented, and name of the landlord who received the rental payments.
Other notes:
- Only one spouse or common-law partner of a couple who rented in the year may claim the tax credit.
- The CRA may request support for the tax credit claim after the return is filed. This may include the name of the person that received rent payments and/or proof of rent paid.
- Be careful in claiming rent paid in more than one place in the return (for example, if the client has a T776 or T2125 for home office / business use of the home, we should not include rent as an expense on those schedules)
For more details on the credit, please see this BC government webpage: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/credits/renters-tax-credit
