B.C. renter's tax credit
Last updated on March 15, 2024
Starting in the 2023 tax year, a renter's tax credit based on annual income has been introduced. For 2023 this tax credit will give $400 to low- and moderate-income renter individuals and families with an adjusted income of $60,000 or less. Individuals and families with an adjusted income greater than $60,000 and less than $80,000 may receive a reduced amount.
You claim your renter’s tax credit on your T1 Income Tax and Benefit Return. No separate application is needed.
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About the credit
The B.C. renter’s tax credit is administered by the Canada Revenue Agency (CRA) for the Province.
To receive the credit for 2023, you must file your 2023 T1 Income Tax and Benefit Return. You may file your 2023 income tax return now.
Who's eligible for the credit
For the 2023 and subsequent tax years, you can claim the renter’s tax credit if you meet the following criteria:
- During the year:
- You occupied an eligible rental unit in B.C. under a tenancy agreement, licence, sublease agreement or similar arrangement
- You occupied an eligible rental unit in B.C. for at least 6 one-month periods. You may occupy different eligible rental units during the year, for a total of at least 6 one-month periods. Any occupancy period of less than one month does not count as a one-month period
- Rent was paid for that rental unit
- On December 31 of the tax year, you were a resident of B.C. and you were:
- 19 years of age or older, or
- A parent, or
- Cohabiting with a spouse or common-law partner
Note: Eligible tenants who rent and occupy an eligible rental unit under a rental or tenancy agreement together but are not married or in a common-law relationship with each other (roommates) may each claim their own renter's tax credit if all other criteria are met.
You cannot claim the renter’s tax credit if you:
- Are the cohabitating spouse or common-law partner of a renter who has already claimed the credit for the tax year
- 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
- Were an employee of a foreign government or resided with a family member or a servant of the employee of a foreign government in Canada (for example, diplomats and their household members)
- Die before the end of the year
Budget 2024 proposes that you cannot claim the renter’s tax credit on your in-bankruptcy income tax return if you were bankrupt during the year.
Rent
Rent must be paid on the eligible rental unit.
Rent can be considered paid if it's deducted from a payment due to you (for example, rent deducted from your pay for employer-provided accommodation).
Rent does not include amounts paid:
- To non-arms length landlords, such as parents, grandparents, siblings, children, spouses or common-law partners
- Under a rent-to-own plan
- By your employer for accommodation that is not required to be included in your income (for example, your employer provides you free accommodation at a special or remote work site or camp and it's not included in your income as a taxable benefit)
- For a campsite, moorage or manufactured home site (mobile home or trailer park pad)
Eligible rental unit
An eligible rental unit is a living accommodation in British Columbia. For the B.C. renter's tax credit, you must occupy an eligible rental unit(s) for at least 6 one-month periods during the year.
This could be a rental unit in a (an):
- Single-family dwelling
- Apartment
- Condominium
- Townhouse
- Basement suite
- Detached suite
- Carriage house
A rental unit in the following types of accommodations may be considered an eligible rental unit if the unit is rented and rent was paid for that rental unit:
- Co-operative housing
Note: Individuals are not eligible for the credit if they own the housing unit they occupy. This includes direct or indirect ownership through owning shares of the capital stock of a co-operative housing corporation, or through any other method.
- College and university dormitories
- Long-term care, assisted living or seniors independent living facilities
Note: If the eligible tenant who is living in the facility is married or living in a common-law relationship, and the other spouse or common-law partner also meets all the criteria for the B.C. renter's tax credit, only one of them can claim the credit even if they are living and renting separately.
- Motel or hotel
- Shared housing (roommates)
- Subsidized housing
- Supportive housing
- Employer-owned accommodation
Note: For employer-owned accommodation, rent must be paid to the employer or deducted from an employee's pay. The accommodation must be rented and occupied from month to month. Examples include government-owned residential housing units for Canadian Armed Forces personnel, live-in nannies, and caretakers and farm workers renting accommodation from their employers.
How much is the credit
For the 2023 tax year, the maximum renter’s tax credit you may receive is $400. The credit is reduced by 2% of the amount by which your 2023 adjusted income exceeds $60,000. The credit is reduced to zero at $80,000.
The adjusted income threshold amount of $60,000 will be indexed to inflation each year. For the 2024 tax year, the adjusted income threshold will be increased to $63,000 and the credit will be reduced to zero at $83,000.
Your adjusted income is the total of your net income and your spouse or common-law partner’s net income (if applicable) with certain adjustments. These adjustments are the same as those used in the calculation of adjusted family net income used for determining other tax credits. You must include your spouse or common-law partner’s net income for the year, even if they are not eligible for the credit.
The amount of the credit is determined by your adjusted income, it is not based on the amount of rent that is paid. Any rental subsidy you receive for the rental unit will not reduce the B.C. renter's tax credit you may receive.
How to claim the credit
You claim the credit on form BC479 British Columbia Credits when you file your 2023 T1 Income Tax and Benefit Return (income tax return). When completing the form, enter the total rent paid for the eligible rental unit for the tax year. If you need help completing your income tax return, please contact the Canada Revenue Agency.
Note: If you have a modest income and a simple tax situation, you may be able to get your income tax return done for free through the Community Volunteer Income Tax Program. To find a free tax clinic, please check the directory.
The credit is a refundable tax credit, which means the credit will reduce your taxes owing, and if the credit amount is more than the combined federal and B.C. income taxes you owe, you will receive the difference as an income tax refund. You will not receive a separate payment for this credit.
If you declare bankruptcy in the year, you can claim the renter’s tax credit on your post-bankruptcy income tax return.
You may be asked by the Canada Revenue Agency to provide information to support your eligibility after you file your tax return, such as the name of the person that you pay rent to or proof of rent paid.
Legislation
The following legislation applies to the renter's tax credit:
- Income Tax Act (B.C.) Section 8.3
- Bill 3, Budget Measures Implementation Act, 2024