No, tenants in Ontario do not pay HST on rent for a long-term residential home. Federal tax law treats residential rent as an exempt supply when you occupy the unit for at least one month, so your landlord cannot add the 13% HST to the amount in your lease. On top of that exemption, Ontario renters can claim a provincial credit tied to the rent they pay, and some can deduct part of their rent as a work-from-home or moving expense.
Why Residential Rent Is HST-Exempt
Section 6 of Part I, Schedule V of the federal Excise Tax Act lists residential rent as an exempt supply where the tenant has continuous occupancy for at least one month.1Justice Laws Website. Excise Tax Act RSC 1985 c E-15 – Schedule V, Part I, Section 6 An exempt supply in Canadian tax law is one the supplier cannot charge GST or HST on. There is no opt-in, no registration threshold, no workaround. If your lease runs month-to-month or longer and you live in the unit, the rent is tax-free.
The exemption covers the base rent and any services bundled into it under the same lease, such as heat or water included in the monthly price.
When HST Can Still Apply
The exemption has limits, and tenants who cross them can get an unwelcome surprise.
- Short-term rentals of less than one month of continuous occupancy are not exempt, which is why Airbnb-style stays and furnished short-term sublets attract HST.1Justice Laws Website. Excise Tax Act RSC 1985 c E-15 – Schedule V, Part I, Section 6
- Commercial leases for office, retail, or industrial space are fully taxable at 13%. Running a business out of a separately leased commercial unit does not fall under the residential exemption.2Canada Revenue Agency. Charge and Collect the GST/HST
- Parking is exempt only when supplied by the same landlord who rents you the residential unit and is part of or incidental to the building. Parking rented from anyone else is taxable, even if your landlord pointed you to the lot.3Canada Revenue Agency. Residential Real Property – Rentals
The Ontario Energy and Property Tax Credit
You do not pay property tax directly to the municipality as a tenant, but a portion of every rent dollar covers your landlord’s property tax bill. The province recognizes this through the Ontario Energy and Property Tax Credit (OEPTC), one component of the broader Ontario Trillium Benefit.4Canada Revenue Agency. Ontario Energy and Property Tax Credit Questions and Answers
To qualify for the 2026 OEPTC, you must have lived in Ontario on December 31, 2025, and rent for your principal residence must have been paid by or for you during 2025.5Canada Revenue Agency. Province of Ontario Students in a designated college or university residence also qualify. The credit has an energy portion and a property tax portion, with amounts that depend on your age and income. For 2026, the overall maximum is $1,488 for seniors and $1,307 for non-seniors, and the credit phases down as income rises.6Canada Revenue Agency. 2026 Ontario Energy and Property Tax Credit Calculation Sheets
Get Rent Receipts First
Under section 109 of the Residential Tenancies Act, your landlord must provide a rent receipt when you ask for one.7Ontario.ca. Residential Tenancies Act, 2006 The receipt should show the total paid, the period covered, and the landlord’s name. If your landlord ignores the request, bank statements, e-transfer confirmations, and cancelled cheques can all stand in as proof. Label e-transfers clearly with the month, year, and rental address in the memo field so the records speak for themselves if the CRA asks.
Complete Form ON-BEN
You claim the 2026 OEPTC by filling out Form ON-BEN (Application for the Ontario Trillium Benefit) as part of your 2025 tax return.5Canada Revenue Agency. Province of Ontario The form asks for your rental address history during the year and the total rent paid. Certified tax software walks you through the fields automatically; you can also print and mail the form to a CRA tax centre.
When the Money Arrives
After the CRA processes your return, the OEPTC is folded into your Ontario Trillium Benefit. The annual amount is normally divided by 12 and issued as monthly payments running from July through the following June.8Canada Revenue Agency. Payment Dates for CRA Administered Benefits and Credits If the total credit is small, the CRA may issue it as a single lump sum instead.
Claiming the OEPTC for Past Years
If you did not file for the OEPTC in earlier years, you can request a change to those returns. The CRA generally allows adjustments going back up to 10 calendar years.9Canada Revenue Agency. Ontario Trillium Benefit Questions and Answers You will need your rent figures for each year you want to amend, so pull together old receipts or bank records before submitting the request.
Deducting Rent for a Home Office
Employees who work from home may be able to deduct part of their rent as an employment expense, separate from the OEPTC. Your employer must complete and sign Form T2200 (or the simplified T2200S) confirming you were required to work from home.10Government of Canada. Expenses You Can Claim – Home Office Expenses for Employees
The deduction is based on the percentage of your home used for work. If your apartment is 800 square feet and your dedicated workspace is 100 square feet, you can claim 12.5% of your monthly rent. Self-employed people can also deduct a share of home office rent, using business income as the cap.
Deducting Moving Costs
Tenants who relocate for a new job, to run a business at a new location, or to attend post-secondary school full-time can deduct their moving costs under section 62 of the Income Tax Act.11Canada Revenue Agency. Income Tax Folio S1-F3-C4, Moving Expenses Your new home must be at least 40 kilometres closer to the new work or school location than your old home, measured by the shortest public route.12Canada Revenue Agency. Can You Claim Moving Expenses?
Eligible costs include transportation, temporary lodging, and the cost of breaking a lease on your old apartment. You calculate the deduction on Form T1-M and claim it on line 21900. The deduction can only be used against income earned at the new location, so a mid-year move does not offset income from your previous job.