Income tax on rent, worked example, in Canada
Taxation Researcher | July 13, 2019
|Non-resident couple´s joint monthly rental income1||US$1,500||US$6,000||US$12,000|
|Annual Rental Income||US$18,000||US$72,000||US$144,000|
|= Taxable Income||US$18,000||US$72,000||US$144,000|
|Flat Tax 25%||4,500||18,000||36,000|
|Annual Income Tax Due||4,500||18,000||36,000|
|Tax Due as % of Gross Income||25.00%||25.00%||25.00%|
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 1.13 CAD
3 Gross rental income earned by nonresident individuals is generally subject to 25%
Nonresidents may elect to file an income tax return. By so electing, he will then be taxed on the net rental income at the federal tax rates.