There is good news for tenants in Edmonton and Alberta in general: tenants do not pay direct taxes on rented accommodation. Property tax is paid by the property owner, not the tenant. Long-term rentals are also exempt from GST (federal goods and services tax). However, there are certain tax-related nuances that tenants should be aware of, from potential tax breaks to special situations with non-resident landlords. This article explains the tax situation for tenants in Edmonton in detail and will help you understand your rights and options.
Direct taxes on rent: what tenants do not pay
Tenants in Edmonton do not pay direct taxes on rented housing. This means several important things.
First, property tax is the responsibility of the owner, not the tenant. The City of Edmonton sends out property tax notices at the end of May each year, and owners must pay by June 30. Although landlords often factor this tax into their rent, legally, the responsibility for paying it lies with them.
Second, GST/HST does not apply to long-term residential rentals. If you rent an apartment or house for more than 60 days, your rent is exempt from GST. This is a federal rule that applies across Canada.
The exception is short-term rentals (less than 60 days, for example, through Airbnb). In such cases, GST may apply, but it is paid by the landlord, not the tenant directly.
Indirect taxes: what's included in the rent
Although tenants do not pay taxes directly, it is important to understand that landlords often include their tax expenses in the rent. This means that you indirectly pay part of the property tax through your rent.
This is normal practice in the rental market. Landlords factor in all their costs — property tax, insurance, maintenance — when setting the rent. However, this does not mean that you, as a tenant, are legally liable for these taxes.
In some commercial leases, tenants may be required to pay a portion of the property tax separately from the rent (known as a “triple net lease”). However, this is not a typical practice in Alberta for residential leases.
Tax benefits and programs for tenants
Although Alberta does not have a provincial tax credit for tenants (unlike some other provinces, such as Ontario or British Columbia), there are other support programs available.
Rental assistance programs in Alberta
The Alberta government offers the Rent Supplement Program, a rent subsidy program for low-income households. This program has two main components.
The Rent Assistance Benefit (RAB) is long-term assistance for the lowest-income households. The subsidy is paid directly to tenants and can range from $100 to $500+ per month, depending on your income and local rental prices. You can apply through your local housing authority—in Edmonton, that's Civida.
Temporary Rent Assistance Benefit (TRAB) is short-term assistance for low-income Albertans who are working or between jobs. This program provides support for up to two years to help stabilize your financial situation.
Federal tax credits
At the federal level, renters may be eligible for several benefits.
Canada Workers Benefit (CWB) is a refundable tax credit for low-income workers. In 2025, the maximum amount is up to $1,633 for single individuals or $2,813 for families.
The GST/HST Credit is a quarterly payment for individuals and families with low to moderate incomes. In 2025, the maximum amounts are $533 for single individuals, $698 for couples, and $184 for each child under 19.
Provincial credits in other provinces (for comparison)
For comparison, some other provinces offer special tax credits for renters. British Columbia provides a credit of up to $400 per year for renters with incomes up to $63,000. Manitoba offers a Renters Affordability Tax Credit of up to $575 per year (in 2025), plus an additional amount for seniors. Ontario has the Ontario Trillium Benefit, which includes a component for renters.
Unfortunately, Alberta does not currently have a similar provincial credit for renters. However, the federal government has announced a new Renters Tax Credit starting in the 2025 tax year — up to $575 per year (up to $1,600 for seniors). Check for updates when filing your tax return.
Special situation: non-resident landlord
One of the most important tax situations that tenants should be aware of concerns non-resident landlords.
If your landlord is not a resident of Canada for tax purposes, you as a tenant may be required to withhold 25% of the rent and remit that money to the Canada Revenue Agency (CRA). This is called “withholding tax.”
Example: If you pay $3,500 per month to a non-resident landlord, you must withhold $875 (25%) and remit this amount to the CRA within 15 days after the end of the month. You pay only $2,625 to the landlord.
If you do not fulfill this obligation, the CRA may require you to pay this tax along with penalties and interest. This can result in significant financial losses.
How to protect yourself
Before signing a lease, ask the landlord to confirm their Canadian resident status. You can ask for a copy of their Canadian tax return or a certificate of tax residency.
If the landlord refuses to provide proof, you can hold 25% of the rent in a separate account until the situation is clarified.
Please note: a statement in the lease agreement that the landlord is a resident of Canada is not sufficient. You need actual proof.
Important change: In August 2024, changes to the law were proposed that would exempt individual landlords from the obligation to withhold tax from non-residents. Check the current status of this change with the CRA.
Utilities and taxes
Utilities are not a tax, but they are an important part of housing costs that tenants often confuse with tax issues.
In Edmonton, utilities can be arranged in several ways. They can be included in the rent, partially included in the rent (e.g., water and heating, but not electricity), or the tenant pays them separately directly to the suppliers.
The cost of utilities in Edmonton can range from $150 to $500+ per month depending on the size of the home and the season. In winter, costs are usually higher due to heating.
If utilities are included in the rent, the landlord may periodically review this amount. However, they must follow the rules for rent increases — once every 12 months with three months' notice for monthly rentals.
Tenant insurance and taxes
Tenant insurance (renter's insurance) is not tax deductible for most tenants in Canada. However, there are exceptions.
If you work from home, you may be eligible to deduct a portion of your tenant insurance as a home office expense. This applies to self-employed individuals and employees who are required to work from home at their employer's request.
Employees who work from home need a completed T2200S form from their employer. Self-employed individuals can deduct a portion of their insurance in proportion to the size of their home office.
Taxation of rental income (for landlords)
Although this applies to landlords rather than tenants, it is useful to understand how rental income is taxed in order to better understand the dynamics of the rental market.
Landlords in Canada must report all rental income on their tax return. Rental income is taxed at a marginal rate—in Alberta, this ranges from 25% to 48% depending on total income.
Landlords can deduct various expenses to reduce their taxable income, including mortgage interest, property taxes, insurance, repairs and maintenance, utilities (if they pay them), and advertising.
This information can be useful if a landlord tries to pass on unusual expenses to you, claiming that they are “tax requirements.”
How tenants can prepare for tax season
Although tenants in Alberta do not have many specific tax obligations, there are a few tips for tax season.
Keep your rent receipts. Even though Alberta does not have a provincial credit for tenants, the documentation may be needed for federal programs or if you move to another province.
File a tax return every year. Even if you have a low income or didn't earn any money, filing a return is necessary to receive the GST/HST Credit and other benefits.
Check your eligibility for federal benefits. The Canada Workers Benefit and GST/HST Credit can provide significant financial support for low-income individuals.
If you work from home, track your home office expenses, including a portion of your rent, utilities, and insurance.