Canadian Airbnb Owners: New Tax Alert!
Canadian Airbnb owners may now face a 13% HST when selling their property!
In a recent tax ruling, the Tax Court of Canada has classified short-term Airbnb rentals as commercial rather than residential—meaning HST applies if your property resembles a hotel-like business model .
Key Points:
Applies to rentals under 28 days if operated like a hotel
Case in point: An Ottawa owner received a $77k tax bill after 9 years of renting out her property!
If you rent your property 90% of the time or more, you could be affected
Does This Apply to You?
Consult your accountant for clarity as the 90% rule is still a bit vague!
What do you think?
Should Airbnb owners be hit with this extra tax? Comment below—I’d love to hear your take!
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