No, there is no HST on rent in Ontario when you rent a place to live in for a month or longer. Federal tax law classifies long-term residential rent as an exempt supply, which means your landlord cannot add GST or HST to the amount in your lease. The monthly figure you signed for is the full amount you owe. Ontario tenants can also claim a provincial credit tied to rent, and some can deduct part of their rent as a work-from-home expense.
Why Residential Rent Is Exempt
Section 6 of Part I, Schedule V of the federal Excise Tax Act lists residential rent as an exempt supply when 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 “Exempt supply” in Canadian tax law means the landlord cannot charge GST or HST on it. 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.
Ontario’s combined HST rate is 13%.2Canada Revenue Agency. GST/HST Calculator (and Rates) On a $2,000 apartment, that would be $260 a month you never have to pay. The exemption also covers services bundled into the lease price, such as heat or water included in your rent.
When HST Does Apply
The exemption has boundaries, and a few situations fall outside it.
Short-term rentals. If continuous occupancy is less than one month, the rental is not exempt. Airbnb-style stays and furnished short-term sublets attract HST for that reason.1Justice Laws Website. Excise Tax Act RSC 1985 c E-15 – Schedule V, Part I, Section 6
Commercial leases. Businesses renting office, retail, or industrial space pay the full 13% HST on their lease. If you run a business out of a separately leased commercial unit, you are not covered by the residential exemption.3Canada Revenue Agency. Charge and Collect the GST/HST
Parking from a third party. A parking spot is exempt when the same landlord who rents you the residential unit supplies it as part of or incidental to the building. If the parking comes from someone other than your landlord, even a nearby lot your landlord recommended, that supply is taxable.4Canada Revenue Agency. Residential Real Property – Rentals
The Rent-Linked Credit Ontario Tenants Can Claim
Tenants do not pay property tax directly to a municipality, but a portion of every rent dollar goes toward the landlord’s property tax bill. Ontario recognizes this through the Ontario Energy and Property Tax Credit (OEPTC), one component of the Ontario Trillium Benefit.5Canada 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 2025.6Canada Revenue Agency. Province of Ontario Students living in a designated college or university residence also qualify. The credit combines an energy portion and a property tax portion. For 2026, the overall maximum is $1,488 for seniors and $1,307 for non-seniors, with the actual amount reduced as income rises.7Canada Revenue Agency. 2026 Ontario Energy and Property Tax Credit Calculation Sheets
Get Your Rent Receipts
Under section 109 of the Residential Tenancies Act, your landlord must provide a receipt for rent payments when you ask for one.8Ontario.ca. Residential Tenancies Act, 2006 The receipt should show the total rent paid, the period covered, and the landlord’s name. Ask well before tax season.
If your landlord refuses, bank statements, e-transfer confirmations, and cancelled cheques can all serve as proof. Label your e-transfers with the month, year, and rental address in the memo field. If the CRA asks for documentation, these records substitute for formal receipts.
File the ON-BEN Form
You claim the 2026 OEPTC by completing Form ON-BEN (Application for the Ontario Trillium Benefit) with your 2025 income tax return.6Canada Revenue Agency. Province of Ontario The form asks for your rental address history during the year and the total rent you paid. Certified tax software walks you through the ON-BEN fields automatically.
When Payments Arrive
Once 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.9Canada Revenue Agency. Payment Dates for CRA Administered Benefits and Credits If the total is small, the CRA may issue it as a single lump sum.
Claiming Missed Years
If you did not file for the OEPTC in past years, you can request a change to your prior returns. The CRA generally allows adjustments going back up to 10 calendar years.10Canada Revenue Agency. Ontario Trillium Benefit Questions and Answers You will need your rent figures for each year you are amending.
Deducting Rent When You Work From Home
If you work from home as an employee, you may be able to deduct a portion of your rent from your taxable income. This is separate from the OEPTC and works as an employment expense deduction. To qualify, your employer must complete and sign Form T2200 (or the simplified T2200S) confirming that you were required to work from home.11Government of Canada. Expenses You Can Claim – Home Office Expenses for Employees
The deductible amount 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 as an employment expense. If you and a spouse or common-law partner both work from home, you can split the deduction, but the combined claims cannot exceed the total rent paid.11Government of Canada. Expenses You Can Claim – Home Office Expenses for Employees Self-employed individuals can also deduct home office rent, using their business income as the cap.