Free CRA Part XIII Remittance Calculator

How Part XIII Withholding Works

Under Part XIII of the Income Tax Act, any person who pays rent to a non-resident of Canada must withhold 25% of the gross rent and remit it to CRA by the 15th day of the month following the payment. This applies to both tenant-paid and property-manager-collected rents.

Cash-basis rule for deposits

A last-month deposit is taxable in the month it was received, not the month it is credited to the tenant. If a tenant pays a last-month deposit on lease signing in January, that amount must be included in January's remittance — even though it will not be applied until the final month of tenancy two years later. This is the cash-basis rule used by CRA.

Multiple properties — one remittance

If you own more than one Canadian rental property, all Part XIII withholding is combined into a single monthly remittance under your NR account number. You do not need to file separate remittances per property.

NR6 election — withhold on net rent

Filing Form NR6 with CRA before January 1 of the tax year allows you to reduce monthly withholding from 25% of gross rent to 25% of net rent (rent minus eligible expenses). This significantly improves cash flow. You must then file a Section 216 income tax return by June 30 of the following year.

Section 216 return — recover the rest

Even without an NR6, you can file a Section 216 return to claim deductions (mortgage interest, property tax, management fees, depreciation) and receive a refund of over-withheld Part XIII tax. The deadline is 2 years from the end of the tax year.