Long-term rentals and short-term stays, owned from Canada
Canadians With a Florida Rental: How the Rent Is Taxed
In up to three places. The IRS can tax the rent, at 30% of gross by default or on net income if you make the choice on Form 1040-NR. Florida's sales and local taxes can apply to stays of six months or less. And Canada taxes your rental income, with a possible foreign tax credit. Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares the US returns and the Canadian T1 and T2. Based in Surrey, working with clients across Greater Vancouver, the rest of Canada and remotely.
Quick answer
How is a Florida rental taxed for a Canadian resident?
At the federal level, US rent is taxed at 30% (or a lower treaty rate) unless you can and do choose to treat it as effectively connected and report net income on Form 1040-NR (IRS). Florida taxes rentals of six months or less through sales tax and local transient rental taxes (Florida DOR). In Canada, you report the rent (CRA) and may claim a foreign tax credit (CRA).
At a glance
- US federal
- 30% of gross by default, or net income if you make the choice
- Six months or less
- Florida sales tax and local transient rental taxes can apply
- Canada
- Form T776, foreign tax credit, possibly T1135
- Source
- IRS and Florida DOR, checked November 4, 2026
Long-term or short-term?
| Longer lease | Stay of six months or less | |
|---|---|---|
| US federal tax | Rent taxed as below | Rent taxed as below. Hotel-like services can raise other questions, so ask |
| Florida sales tax | A bona fide written lease of more than six months for continuous residence is exempt (s. 212.03) | Taxable (Florida DOR) |
| Local tourist taxes | Generally not | Counties can add transient rental taxes (Florida DOR) |
The US federal return
By default, rent is taxed at 30% (or a lower treaty rate) of the gross amount. You can choose to treat all income from US real property held for the production of income as effectively connected, which allows you to be taxed on net income (IRS Publication 519). The choice is made with a statement on Form 1040-NR (IRS). Whether it suits you depends on your facts. See Canadians with US rental property.
The Florida points
- Personal income tax. Florida's Department of Revenue lists no personal income tax among its taxes, and its Constitution limits state tax on the income of residents and citizens (Article VII). Corporate income tax is separate, so a corporation can be different.
- Sales tax. The state rate is 6%, and many counties add a surtax (Florida DOR).
- Local taxes. Local option transient rental taxes, often called tourist development taxes, can apply on top (Florida DOR). Some counties collect their tax directly, so check your county.
Owning it personally or through an LLC
This choice changes how the two countries line up, so make it before you buy. See should Canadians use an LLC? When you sell, see selling US property as a Canadian. Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares the US returns and the Canadian T1 and T2. Everything is quoted after review.
Common questions
Does Florida tax my rental income?
Florida's Department of Revenue lists no personal income tax, but sales and local taxes can apply to stays of six months or less. A corporation is treated differently.
Do I need a US return for one condo?
Often, yes, particularly if you want to be taxed on net income. Your facts decide this.
Does Airbnb take care of Florida taxes?
Do not assume it covers everything. Check what the platform collects, and what your county requires.
Do you prepare both my US and Canadian returns?
Yes. Gurleen Kaur, CPA, prepares the US returns and the Canadian T1 and T2.
Sources
Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS: Nonresident aliens, real property located in the US
- Florida Department of Revenue: Sales and use tax
- Florida Department of Revenue: TIP 25A01-04
- Florida Department of Revenue: Local option transient rental tax rates
- Florida Statutes, s. 212.03
- Florida Constitution, Article VII, section 5
- CRA: Form T776
- CRA: Line 40500, federal foreign tax credit
- CRA: Questions and answers about Form T1135
Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 4, 2026. This page is general information, not tax or legal advice for your situation.
Related guides: Should Canadians use an LLC?, US rental property, Selling US property, US estate tax.
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