The $400 Rent Tax Credit in British Columbia (B.C.) is a financial relief program designed to support low- and moderate-income renters in 2025.
If you’re renting a home in B.C., you may be eligible for this refundable tax credit, which can reduce your tax burden or provide you with a refund.
In this guide, we’ll cover who qualifies for the credit, how to apply, and key details to ensure you don’t miss out on this financial benefit.
Key Details of the $400 Rent Tax Credit
| Category | Details |
|---|---|
| Credit Amount | Up to $400 per year |
| Eligibility | B.C. residents, 19+ years old, with a rental agreement |
| Income Limits | Full credit for income ≤ $63,000; partial credit for income ≤ $83,000 |
| Application Method | File T1 Income Tax Return using Form BC479 |
| Refundable Credit | Yes – if the credit exceeds taxes owed, you get a refund |
| Official Website | B.C. Government Tax Credits Page |
The goal of this credit is to ease the financial burden of rent payments, making housing more affordable for those who need it most.
What is the $400 Rent Tax Credit?
The B.C. Rent Tax Credit is a provincial tax credit aimed at helping renters manage rising housing costs.
It applies to individuals and families who have been paying rent in British Columbia throughout the year.
Because this is a refundable tax credit, even if you owe no taxes, you can still receive the full or partial amount as a direct payment from the government.
How Does a Refundable Tax Credit Work?
If your tax liability is lower than the credit amount, you receive the difference as a refund.
For example:
- If you qualify for $400 but owe only $200 in taxes, you will get a $200 refund.
- If you owe no taxes, you will still receive $400 as a payment.
This makes the credit beneficial for low-income renters who may not owe much in taxes.
Who is Eligible for the $400 Rent Tax Credit?
To qualify, you must meet the following requirements:
1. Residency in British Columbia
- You must be a resident of B.C. on December 31, 2025.
- Your rental property must be located within the province.
2. Age Requirement
- You must be at least 19 years old by December 31, 2025.
- If you are under 19, you can still qualify if you:
- Have a child, or
- Live with a spouse or common-law partner.
3. Rental Agreement
- You must have paid rent for a legal rental unit in B.C. for at least six months in 2025.
- Eligible rental properties include:
- Apartments, houses, townhomes, and basement suites
- Government-subsidized housing (may have special conditions)
- Ineligible properties include:
- Short-term vacation rentals
- Airbnb properties
- Temporary housing arrangements
4. Income Limits
The credit is designed for low- to moderate-income renters.
| Income Range | Credit Amount |
|---|---|
| ≤ $63,000 | Full $400 credit |
| $63,001 – $83,000 | Reduced credit (amount decreases as income increases) |
| > $83,000 | Not eligible |
Your adjusted income includes:
- Employment earnings
- Business income
- Investment income
- Spousal/common-law income (if applicable)
If your total income is under $83,000, you may qualify for at least a partial credit.
How to Apply for the $400 Rent Tax Credit
Applying for the credit is easy and is done through your income tax return.
Step 1: File Your Income Tax Return
- Use the T1 Income Tax and Benefit Return.
- Ensure you include all sources of income and deductions.
Step 2: Complete Form BC479
- This is the British Columbia Credits form.
- Fill in details about your rental payments and income.
Step 3: Submit Your Tax Return
- You can file electronically using tax software or the CRA online portal.
- If filing on paper, ensure you attach Form BC479.
Step 4: Keep Rent Payment Records
- While receipts are not required when filing, the CRA may request proof.
- Keep copies of:
- Rent receipts
- Lease agreements
- Bank statements showing rent payments
Examples of How the Credit Works
Example 1: Full $400 Credit
- Sarah lives in Vancouver and earns $55,000 per year.
- She qualifies for the full $400 rent tax credit.
- Since she owes $600 in taxes, the credit reduces her tax bill to $200.
Example 2: Partial Credit
- David and Lisa, a couple from Surrey, earn $75,000 combined.
- They qualify for a reduced credit of $200.
- Since they owe $150 in taxes, they receive a $50 refund.
Example 3: Refundable Credit
- John earns $30,000 per year and owes no taxes.
- Because the credit is refundable, he still receives $400 as a direct payment.
Additional Benefits for B.C. Renters
Besides the Rent Tax Credit, you may qualify for:
- B.C. Sales Tax Credit – Helps low-income individuals offset provincial sales tax costs.
- B.C. Family Benefit – Provides additional support for parents with children.
- GST/HST Credit – Federal tax benefit for low-income households.
Combining multiple provincial and federal benefits can maximize your financial relief.
The $400 Rent Tax Credit in British Columbia is a valuable financial benefit that helps renters offset rising housing costs.
By understanding the eligibility criteria and ensuring you apply correctly, you can take advantage of this credit and potentially receive a refund.
If you are a renter in B.C., be sure to check your eligibility and apply when filing your 2025 tax return.
With proper documentation and timely filing, you can reduce your tax burden or receive extra money back.
