Plex, cottage or Airbnb — here's exactly what you need to declare, without accounting jargon.
January 2026
You rented out your plex in Montreal, your basement, or your cottage in Lanaudière this year. And now comes the question every property owner dreads: what do I need to declare? What is a T776 form? What is the CCA? Does my Airbnb count?
Take a breath. It's more manageable than you think — as long as you have the right guidance. This guide explains the essentials in plain language: who declares what, with which forms, how to calculate your net income, and above all — the mistakes you absolutely must avoid.
Everyone. There is no minimum threshold below which you are exempt from declaring rental income.
| Level | Form | Filed With | Deadline |
|---|---|---|---|
| Federal — CRA (Canada) | T776 — Statement of Real Estate Rentals | T1 Return | April 30 * |
| Provincial — ARQ (Québec) | TP-128 — Income and Expenses from Rentals | TP-1 Return | April 30 * |
In Quebec, you file two tax returns per year: a federal one (CRA — Canada Revenue Agency) and a provincial one (ARQ — Agence du revenu du Québec, known as Revenu Québec). Each has its own form for rental income — and both are mandatory. To help you complete them, see the CRA guide here and the Revenu Québec guide here.
💡 Important exception: if you or your spouse are self-employed, the filing deadline is June 15 — but any balance owing is still due by April 30. Filing late does not defer interest charges.
The duration of your rentals has a direct impact on your tax obligations — particularly for sales taxes. If you operate both long-term (12-month lease) and short-term (Airbnb) rentals, different rules apply to each portion.
| Rental Type | Duration | GST/QST | Income Tax |
|---|---|---|---|
| Short-term (ST) | < 30 consecutive days | Taxable if > $30,000/year | Yes — T776 + TP-128 |
| Medium-term (MT) | 31 to 364 days | Generally exempt | Yes — T776 + TP-128 |
| Long-term (LT) | 12-month lease+ | Exempt | Yes — T776 + TP-128 |
Note: if your short-term rental income exceeds $30,000 over four consecutive quarters, an additional obligation arises — GST/QST registration. These are two distinct tax regimes: one covers income tax (this guide), the other covers sales taxes.
→ Everything about sales taxes for short-term rentals: Accommodation Tax, GST and QST — Complete Guide.
Here's good news that many property owners don't know: you don't declare the gross amount of your rents. You declare your NET income — what remains after deducting all eligible expenses. In many cases, this significantly changes the amount of tax payable.
→ To understand CCA fully: CAPEX or OPEX — Capital vs Operating Expenses.
→ For a complete list by property type: Tax deductions for plex owners and Tax deductions for your rental cottage.
If you live in your triplex or use your cottage personally for part of the year, you must prorate your expenses. Only the rental portion is deductible.
If you own a cottage or rental property, you may have heard about the UHT (Federal Underused Housing Tax). Good news: the vast majority of Canadian resident owners have nothing to do — this 1% tax primarily targets non-resident or foreign owners.
Reporting your rental income correctly is not complicated — but it does require a minimum level of organization. Keep a record of your income and expenses throughout the year, retain all your receipts, and clearly distinguish between what is deductible now and what must be amortized.
📌Concrete action: open a folder right now with two sections — 'Income' and 'Expenses' — and update it monthly. Your accountant will thank you come tax season.
Q: Do I have to declare my Airbnb income?
R: Yes, absolutely. All Airbnb income is taxable. The CRA has had access to rental platform data since 2024. Failure to declare exposes you to a retroactive assessment.
Q: Which form should I use to declare rental income?
R: Two forms: T776 (federal, CRA) and TP-128 (provincial, Revenu Québec). They accompany your annual T1 and TP-1 returns.
Q: How do I calculate my net rental income?
R: Net income = Gross income - Deductible expenses (interest, taxes, insurance, maintenance, management, etc.). If the result is negative, the rental loss can generally be deducted from your other income.
Q: Do I have to pay GST/QST on my rents?
R: Long-term residential rentals (12 months+) are exempt. Short-term rentals (less than 30 days) are taxable if your ST income exceeds $30,000 over 4 consecutive quarters.
