Hosting in Canada: The Tax Side of the Gig
Renting out your basement or condo on Airbnb or VRBO has major tax implications that many hosts overlook.
1. Short-term vs. Long-term
- Long-term (30+ days): Residential rent is Exempt. You don't charge tax and can't claim ITCs.
- Short-term (<30 days): Treated like a hotel stay. It is Taxable.
2. The Commercial Platform Rules
Since 2021, platforms like Airbnb are required to collect GST/HST from guests and remit it themselves if the host is not registered. However, if you are registered, you are responsible for the tax management yourself.
3. Selling Your Rental Property
Warning: If you use your property primarily for short-term rentals, the CRA may view it as a commercial property. This could mean you owe 13-15% tax on the sale price of the home when you decide to sell, which can be devastating if not planned for.
4. Claiming Expenses
As a host, you can claim ITCs on:
- Cleaning services and supplies
- Professional photography
- Platform service fees
- Furniture and decor for the rental unit
Check the current HST rate for your rental location →
Run the Canada GST/HST calculator for province-based totals →