If you're a non-resident who owns an Airbnb or vacation rental in Canada, you're probably familiar with the 25% withholding tax on your gross rental income. But here's the good news: yes, most Airbnb hosts can file an NR6—and it could save you thousands every year.
The Bottom Line
Most individual Airbnb hosts qualify for NR6. If you're simply renting out your property without providing hotel-like services, you're likely eligible.
The Key Question: Rental Income vs. Business Income
CRA draws an important distinction between rental income and business income. NR6 applies to rental income—so understanding this difference is crucial.
Your Airbnb income is typically considered rental income if you:
- Provide basic accommodation (furnished or unfurnished)
- Offer standard amenities (WiFi, kitchen access, linens)
- Use a property manager or self-manage remotely
- Have cleaning between guests (but not daily housekeeping)
It may be considered business income if you:
- Provide daily housekeeping or room service
- Offer meals, catering, or food service
- Run guided tours or entertainment activities
- Operate more like a hotel or B&B with extensive services
Real Numbers: How Much Can Airbnb Hosts Save?
Your Annual Numbers
- Gross Airbnb income: $48,000
- Airbnb fees (3%): -$1,440
- Cleaning costs: -$4,800
- Mortgage interest: -$12,000
- Property tax: -$4,000
- Insurance & condo fees: -$6,000
- Net income: $19,760
Tax Comparison
Without NR6
$12,000
25% × $48,000 gross
With NR6
$4,940
25% × $19,760 net
Your Annual Savings
$7,060
How to Get Started
Filing NR6 for your Airbnb is straightforward. You'll need your property details, rental income estimates, and expense projections. Our online form takes about 5 minutes to complete.
