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Estimate annual rental income or loss and its tax effect after the stated property and CCA adjustments.
T776 net income
$18,000Net income or loss after the applied restrictions and CCATax change before credits
$5,337Your rental result is $18,000 across 1 property, with a $5,337 change in the stated band-only tax estimate.
Example: illustrative other taxable income of $80,000 and $6,000 of available CCA.
Rates as of
Use a full year of Canadian-dollar figures and only your ownership share. Include every rental property, as a separate entry when arrangements or short-term compliance differ.
Annual expenses are current property costs before the personal and short-term adjustments. Exclude mortgage principal, purchase costs and CCA, and classify capital spending separately.
After the permitted property results are combined, the calculator compares 2026 federal and local band tax on your other taxable income with and without that result. A loss can produce a negative tax change; taxable income is not reduced below zero.
The reset example uses $36,000 of annual rent, $12,000 of eligible expenses and a requested $6,000 CCA claim, with $6,000 of available allowance. It is a market-rent property with no personal or short-term use. The $24,000 profit before CCA supports that claim, leaving $18,000 of T776 net income.
With $80,000 of other taxable income and Ontario selected, the $18,000 profit stays in the 20.5% federal and 9.15% Ontario bands. The band-only estimate is $18,000 × 29.65% = $5,337. This excludes Ontario surtax, health premiums and personal credit changes.
If expenses instead total $40,000, the same arrangement has a $4,000 loss and no CCA claim. Taxable income falls from $80,000 to $76,000: the band-tax change is −$4,000 × 29.65% = −$1,186.
CRA permits losses incurred to earn rental income, but distinguishes personal arrangements. Household cost sharing contributes to household bills without a rental operation: both contributions and deductions are excluded. A below-market rental to someone you know cannot contribute a deductible loss. That restriction is applied before combining properties, so another property cannot absorb the disallowed amount.
Allocate the personal portion of shared costs on an appropriate area, room or time basis, and do not allocate rental-only costs. When part of a personally used property is rented without a reasonable expectation of profit, no expenses or CCA are deducted here. Ordinary rent remains reported unless the arrangement is household cost sharing.
Market-rent treatment requires an income-earning operation: a relative must pay the same rate as other tenants with an expectation of profit. The calculator cannot establish market rent or decide a disputed commercial purpose.
Income Tax Act section 67.7 covers residential property rented or offered for periods shorter than 90 consecutive days. Expenses attributable to non-compliant operation are denied, even though the rent remains taxable. Non-compliance includes a prohibited location or failure to meet applicable provincial or municipal registration, licensing or permit requirements.
For each property, denied expenses equal the short-term expense portion multiplied by non-compliant days divided by short-term rental days. The same ratio applies to the relevant available CCA.
Available CCA is the relevant allowance in CRA Area A, column 21, after the asset-class, capital-balance and personal-use rules but before the short-term restriction. The calculator subtracts the non-compliant portion, then limits your elective claim to that remainder.
CCA also cannot create or enlarge an overall rental loss: all entered rental profits and allowed losses are combined before this cap. The calculation does not establish asset classes, acquisition-year treatment or remaining capital balances.
This is a resident individual property-income estimate, not a complete T776 or personal tax return. It excludes corporations, partnerships, business rental services, non-residents, recapture, terminal losses, rebates and changes of use.
The tax comparison excludes personal credits, the basic-personal-amount taper, provincial surtaxes, health premiums, benefit changes, alternative minimum tax and foreign-tax relief, so credits on the real return may remove low-income band tax. The Quebec 16.5% federal abatement adjustment before credits is approximate. Excess losses give no further current-year benefit; any carryover needs a separate calculation.
Speak to an accountant or tax advisor about persistent losses, family concessions, mixed personal use, short-term compliance, substantial CCA claims or disposing of property. Ask a lawyer or the tenancy authority when local permission or a dispute affects the rental facts. This tool does not determine CRA acceptance.
Enter annual Canadian-dollar figures, using your ownership share for each property. Include all rental properties for the combined CCA limit. Other taxable income is your income before this rental result, not gross salary.
No. The calculator first limits your requested claim to the available allowance after any short-term denial, then applies the combined rental-profit limit. Enter the available allowance from your CCA schedule; asset class and remaining capital cost are not calculated here.
An allowed income-earning rental loss reduces the entered other taxable income, no lower than zero. A negative tax change shows the reduction in band tax. Personal credits and the full return can change the benefit, so it is not a promised refund.
A loss from charging someone you know less than other tenants is not allowed to offset other income here. A relative paying the same rent as other tenants, with an expectation of profit, can be an income-earning rental. Household cost sharing is separate: neither contributions nor related deductions are included.
Use your province or territory of residence on December 31, 2026. The estimate includes federal and local tax bands, with an approximate Quebec abatement before credits. Provincial surtaxes, premiums, benefits and personal credits are excluded.
The statutory denominator includes days rented or offered for stays shorter than 90 consecutive days, not just occupied nights. Count non-compliant days according to the provincial and municipal operating and registration rules. The calculator applies the expense and CCA restriction separately to each property.
