Are You Eligible for the BC Renter Credit in 2024?

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Key Takeaway Box:

  • The BC renter credit is a new income-tested tax credit for renters in BC, starting in 2024
  • The maximum credit amount is $400 for individuals and families with an adjusted income of $60,000 or less
  • The credit is reduced by 2% of the amount by which the adjusted income exceeds $60,000, and is eliminated at $80,000
  • To claim the credit, you must rent an eligible rental unit in BC for at least six one-month periods in the year and file your 2023 T1 Income Tax and Benefit Return
  • The credit is administered by the Canada Revenue Agency (CRA) for the province
Checklist confirming eligibility for the $400 BC Renter Credit in 2024, with cash symbol, set in a cozy rental space.
Find Out If You’re Eligible: BC Renter Credit 2024.

What is the BC Renter Credit?

If you are a renter in BC, you may be eligible for a new tax credit that can help you reduce your tax payable or increase your refund. The BC renter credit is an income-tested tax credit that was introduced in the 2023 budget to provide relief to low- and moderate-income renters in the province¹.

The credit is based on your annual income and the amount of rent you paid for your rental unit in BC. The credit is available for the 2023 and subsequent tax years, and you can start claiming it on your 2023 T1 Income Tax and Benefit Return when you file your personal income tax in spring 2024.

The credit is expected to benefit more than 80% of BC renting households, according to the province³. The credit is part of the government’s plan to make housing more affordable and accessible for British Columbians¹.

How Much is the BC Renter Credit?

The maximum amount of the BC renter credit you can receive for the 2023 tax year is $400. This amount applies to individuals and families with an adjusted income of $60,000 or less.

Your adjusted income is the total of your net income and your spouse or common-law partner’s net income (if applicable) with certain adjustments. These adjustments are the same as those used in the calculation of adjusted family net income for determining other tax credits².

If your adjusted income is greater than $60,000, your credit amount will be reduced by 2% of the amount by which your adjusted income exceeds $60,000. For example, if your adjusted income is $65,000, your credit amount will be $400 – 2% x ($65,000 – $60,000) = $300².

The credit is reduced to zero when your adjusted income reaches $80,000. This means that if your adjusted income is $80,000 or more, you are not eligible for the credit.

The adjusted income threshold of $60,000 will be indexed to inflation each year, meaning that it will increase based on the cost-of-living increases².

IMPORTANT LINKS:

How to Claim the BC Renter Credit?

To claim the BC renter credit, you must meet the following criteria:

  • During the year, you occupied an eligible rental unit in BC under a tenancy agreement, licence, sublease agreement or similar arrangement for at least six one-month periods
  • Rent was paid for that rental unit
  • On December 31 of the tax year, you were a resident of BC and you were:
    • 19 years of age or older, or
    • A parent, or
    • Cohabiting with a spouse or common-law partner

You cannot claim the BC renter credit if you:

  • Are the cohabitating spouse or common-law partner of a renter who has already claimed the credit for the tax year
  • Were confined to a prison or similar institution on December 31 of the tax year and were confined for periods totalling more than six months during the year
  • Were an employee of a foreign country or a family member or a servant of the employee of a foreign country
  • Die before the end of the year

Rent does not include amounts paid:

  • To non-arms length landlords, such as parents, siblings or relatives
  • Under a rent-to-own plan
  • By your employer for accommodation that is not required to be included in your income
  • For a campsite, moorage or manufactured home site

An eligible rental unit is a living accommodation in BC. This could be a rental unit in a single-family dwelling, apartment, condominium, townhouse, basement suite, detached suite, carriage house, or similar type of accommodation².

A rental unit in the following types of accommodations may be considered an eligible rental unit if the unit is rented for at least six one-month periods in the year and rent was paid for that rental unit:

  • Co-operative housing
  • College and university dormitories
  • Long-term care facility
  • Shared housing (roommates)²

To claim the BC renter credit, you do not need to submit a separate application. You simply need to file your 2023 T1 Income Tax and Benefit Return and report your rent paid and your adjusted income on the appropriate lines. The credit will be calculated automatically by the Canada Revenue Agency (CRA) for the province².

You may file your 2023 income tax return starting in early 2024. You can use the CRA’s online services, such as My Account, NETFILE, or Auto-fill My Return, to file your return electronically and get your refund faster.

Conclusion

The BC renter credit is a new tax credit that can help you save money on your taxes if you are a renter in BC with an income of less than $80,000. The credit is based on your income and the amount of rent you paid for your rental unit in BC. The maximum credit amount is $400, and it is reduced by 2% of the amount by which your income exceeds $60,000. To claim the credit, you must rent an eligible rental unit in BC for at least six one-month periods in the year and file your 2023 T1 Income Tax and Benefit Return. The credit is administered by the CRA for the province.

If you have any questions about the BC renter credit or your eligibility, you can contact the CRA or visit their website for more information. You can also check out the province’s website for more details about the credit and other tax and benefit programs.

We hope this article has helped you understand the BC renter credit and how it can benefit you. If you found this article useful, please share it with your fellow renters and Hustlers. And don’t forget to check out our website, [HustleHub], for more tips and resources on how to make money, save money, and live better. Thanks for reading and happy hustling!

Source: (1) B.C. renter’s tax credit – Province of British Columbia. https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/credits/renters-tax-credit. (2) B.C. renter’s tax credit – Province of British Columbia. https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/credits/renters-tax-credit?keyword=23. (3) Spotlight on tax and benefit programs – Province of British Columbia. https://www2.gov.bc.ca/gov/content/taxes/tax-updates/spotlight-on-tax-and-benefit-programs. (4) BC renters will receive up to $400 as a tax credit in 2024. https://dailyhive.com/vancouver/bc-renters-credit-2024.

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