BC Renter’s Tax Credit for 2023

Tax Credits
Barb Veda 2023

Written By Barb

I’m a bookkeeping technology geek who has been in this industry for over 20 years. My specialty is helping small business streamline their workload with paperless business systems. I have also worked as a purchaser and a controller for several businesses. Currently I am Advanced Certified in Quickbooks and a variety of accounting programs.

February 2, 2024

Beginning the tax year 2023, the British Columbia (B.C.) government has introduced a new tax credit for renters to help individuals and families with housing expenses. The BC Renter’s Tax Credit is designed to provide financial relief to low- and moderate-income individuals and families who rent their homes. Here’s what you need to know about the BC Renter’s Tax Credit for 2023 taxes.

What is the BC Renter’s Tax Credit?

The BC Renter’s Tax Credit is a tax credit that provides up to $400 to eligible renters based on their income. It aims to help individuals and families with an adjusted income of $60,000 or less manage their rent expenses.

Who is Eligible?

For the tax year 2023 and beyond, you can claim the Renter’s Tax Credit if you meet the following criteria:

  • You occupied an eligible rental unit in British Columbia under a tenancy agreement, license, sublease agreement, or a similar arrangement for at least six one-month periods during the year.
  • Rent payments were made for that rental unit.
  • On December 31 of the tax year, you were a resident of B.C. and met one of the following conditions:
    • 19 years of age or older
    • A parent
    • Cohabiting with a spouse or common-law partner
Ineligible Situations:

You cannot claim the Renter’s Tax Credit if you fall into one of the following categories:

  • You were cohabiting with a spouse or common-law partner who already claimed the tax year credit.
  • You were confined to a prison or similar institution for more than six months during the year.
  • You were an employee of a foreign country or resided with a family member or servant of a foreign country employee in Canada.
  • You passed away before the end of the year.
Rent and Eligible Rental Unit:

Rent must be paid for a rental unit meeting the eligibility criteria. Rent excludes payments made to non-arms-length landlords (e.g., parents or relatives), rent-to-own plans, employer-provided accommodation not included in your income, and a campsite, moorage, or manufactured home sites.
An eligible rental unit can be a living accommodation in British Columbia, including single-family dwellings, apartments, condominiums, townhouses, basement suites, detached suites, carriage houses, co-operative housing, college and university dormitories, long-term care facilities, and shared housing with roommates.

vectorstock 4242902 300x186 - BC Renter's Tax Credit for 2023
BC Renters Tax Credit
How Much is the Credit?

For the 2023 tax year, the maximum Renter’s Tax Credit is $400. The credit decreases by 2% for each dollar your 2023 adjusted income exceeds $60,000, reaching zero at an income of $80,000.
The $60,000 adjusted income threshold will be adjusted for inflation annually. In 2024, the threshold will increase to $63,000, and the credit will be reduced to zero at $83,000.
Your adjusted income is your net income, combined with your spouse or common-law partner’s net income (if applicable), with certain adjustments similar to those used for other tax credits.

How to Claim the Credit?

Claim the BC Renter’s Tax Credit using the BC479 British Columbia Credits form when you file your 2023 T1 Income Tax and Benefit Return. You can contact the Canada Revenue Agency for guidance if you need assistance with your income tax return or refer to your tax preparer.
The credit is refundable, meaning it reduces your taxes owed. If the credit exceeds your combined federal and B.C. income taxes, you will receive the difference as an income tax refund. There is no separate payment for this credit.


If you declare bankruptcy during the year, you can still claim the Renter’s Tax Credit on your post-bankruptcy income tax return.
Be prepared to provide supporting information to the Canada Revenue Agency, such as the name of the person to whom you pay rent or proof of rent payments.

Legislation:

The following legislation governs the BC Renter’s Tax Credit:

  • Income Tax Act (B.C.) Section 8.3
  • Bill 10, Budget Measures Implementation Act, 2023.
Conclusion:

The BC Renter’s Tax Credit is a welcome relief for many renters in B.C. It’s essential to understand the eligibility criteria and how to claim the credit to ensure you’re getting all the benefits of this valuable tax benefit. If you need clarification about your eligibility or how to claim the credit, consulting with a tax professional is always a good idea.
Please note that this information is current as of the 2023 tax year and may be subject to change. Refer to the official B.C. government website or consult a tax professional for the most accurate and up-to-date information. https://www2.gov.bc.ca/

Stay informed about this valuable tax credit, and be sure to claim it when you file your 2023 income tax return to maximize your benefits as a B.C. renter.

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