Rental Income Tax Calculator Ontario 2026

Enter Your Rental Property Details

Annual Gross Rental Income ($)

Property Tax ($)

Insurance ($)

Mortgage Interest ($)

Utilities (if landlord-paid) ($)

Repairs & Maintenance ($)

Condo/Strata Fees ($)

Property Management Fees ($)

Other Expenses ($)

Building Value (for CCA) ($) Exclude land value - used to calculate Capital Cost Allowance (CCA) at 4% per year

Your Other Personal Income ($) Used to determine your marginal tax rate in Ontario

Province

ⓘ Common Deductible Expenses Include: Advertising, legal fees, accounting fees, office expenses, auto expenses (proportional), interest on loans, landscaping, snow removal, cleaning, pest control

📊 Your Rental Income Tax Estimate

Gross Rental Income $0

Total Deductible Expenses $0

Net Rental Income (before CCA) $0

Capital Cost Allowance (CCA) - Optional $0

Taxable Rental Income $0

                    Estimated Tax Owed on Rental Income
                    $0
                
                    Marginal Tax Rate Applied
                    0%

⚠ CCA Recapture Warning:

Claiming CCA reduces your building's cost base. When you sell the property, you may face CCA recapture tax. Many landlords skip CCA to avoid this. Consult your CPA before claiming.

⚠ DISCLAIMER This tool provides estimates for informational purposes only and does not constitute professional accounting, tax, or financial advice. Results may not reflect your specific situation. Tax laws and regulations change frequently. Always consult a qualified CPA before making financial decisions. Insight Accounting CPA Professional Corporation accepts no liability for decisions made based on these estimates. For personalized advice, call (905) 270-1873.

❓ Frequently Asked Questions

What expenses can I deduct from my rental income in Ontario?

Ontario landlords can deduct property tax, mortgage interest, insurance, repairs and maintenance, utilities (if paid by landlord), property management fees, advertising, legal and accounting fees, and office expenses. Capital improvements (like renovations) must be depreciated through Capital Cost Allowance (CCA). Insight Accounting CPA helps Mississauga and GTA landlords maximize rental deductions while staying CRA-compliant.

Should I claim Capital Cost Allowance (CCA) on my rental property?

CCA can reduce your current tax bill by depreciating your building at 4% per year. However, when you sell the property, any CCA claimed is "recaptured" and taxed at your full marginal rate. Many Toronto and Ontario landlords skip CCA to avoid recapture. Our Mississauga CPA team can model both scenarios and recommend the best strategy for your situation.

How is rental income taxed in Ontario for 2026?

Rental income is added to your total income and taxed at your marginal rate, which ranges from 20.05% to 53.53% in Ontario depending on your income bracket. You pay both federal and provincial tax. This calculator uses 2026 Ontario tax brackets to estimate your liability. Consult a CPA in Mississauga or the GTA for personalized planning.

Can I deduct mortgage principal payments from rental income?

No - only mortgage INTEREST is deductible, not principal. Many landlords in Toronto and Mississauga confuse this. Your mortgage statement separates interest from principal. Our CPAs help Ontario landlords track deductible interest accurately and optimize their financing structure.

What records do I need to keep for rental property tax deductions?

The CRA requires receipts, invoices, bank statements, and cancelled cheques for all expenses. Keep records for 6 years. Track mileage if you claim auto expenses. Insight Accounting CPA in Mississauga offers rental property bookkeeping services to ensure GTA landlords have audit-ready records and maximize deductions.

🏠 Rental Income Tax Calculator