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$144,000 |
| Income Tax2 | |||
| Flat Tax 25% | 4,500 | 18,000 | 36,000 |
| Annual Income Tax Due | 4,500 | 18,000 | 36,000 |
| Tax Due as % of Gross Income | 25.00% | 25.00% | 25.00% |
Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 1.13 CAD
3 Gross rental income earned by nonresident individuals is generally subject to 25%
withholding tax.
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.
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