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US Landlord with Canadian Rental Property

Own a rental property in Canada? As a US resident, you face obligations on both sides of the border — the IRS taxes your worldwide income, and CRA withholds tax on Canadian rents paid to non-residents.

Select your home state below to find guides tailored to your situation.

Key things US landlords need to know about Canadian property

  • 🇨🇦 Your Canadian property manager must withhold 25% of gross rent every month and remit to CRA (Part XIII tax)
  • 📋 You can file a Section 216 election to pay tax on net income instead — most landlords get a significant refund
  • 🇺🇸 You must also report Canadian rental income on your US return (Schedule E) and claim a foreign tax credit (Form 1116)
  • 💱 IRS accepts the Bank of Canada annual average rate to convert CAD income to USD

Popular States for US Landlords with Canadian Property

California
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Florida
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Michigan
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Minnesota
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Montana
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New York
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North Dakota
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Ohio
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Texas
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Washington
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All US States

AlabamaAlaskaArizonaArkansasColoradoConnecticutDelawareGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMississippiMissouriNebraskaNevadaNew HampshireNew JerseyNew MexicoNorth CarolinaOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeUtahVermontVirginiaWest VirginiaWisconsinWyomingDistrict of Columbia

Key Topics for US Landlords

Part XIII Withholding Tax (25% on gross rents)
How CRA taxes non-resident landlords
Section 216 Election — Get a Refund
Pay tax on net income, not gross rents
NR4 Slip Guide
What the NR4 means for your US return
Foreign Tax Credit (Form 1116)
Avoid double taxation on your US return
Canada-US Tax Treaty
How the treaty protects US landlords
CAD/USD Exchange Rates
Convert Canadian rental income to USD for IRS

Track your Canadian rental income in USD

RentLedger handles CAD→USD conversion using official Bank of Canada rates, tracks Part XIII withholding, and exports IRS-ready reports.

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