Short-term rental profit and tax calculator
Profit from a short-term rental is what guests pay for the stays, less platform fees, cleaning, supplies and the rental share of your home costs. PST, MRDT, the Alberta tourism levy and GST go on top and aren't yours. Enter your nightly rate and nights booked to see profit, the 2026 income tax it adds and your break-even nights.
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2026 BC and Alberta ratesRuns in your browserSummary free, no sign-upEstimate only
Try an exampleOne click fills the form. Change any number after.
Is this the right tool? It is for stays of less than a month. For a long-term tenant, or to work out the tax on rent alongside a job and tax already paid, use the rental income calculator. The rules behind it are in the short-term rental host guide.
Your estimate
$16,594
From $28,500 of bookings, after $11,907 of deductible costs. That is about 58 cents of every dollar guests paid for the stays.
Assumes taxable short stays and applicable platform rules. Longer-stay exemptions and bookings at Alberta's previous levy rate need separate treatment.
Estimate, general information, not tax advice. 2026 rates; CCA, input tax credits and other provinces are left out.
See every line behind this numberBookings, costs, the taxes and who collects them, the income tax, what to do nextGo through your numbers with us
Bring this summary to a free call and we'll tell you what we'd look at before you file.
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Estimate only, general information, not tax or legal advice. It uses the figures you enter and 2026 rates for BC and Alberta. It leaves out capital cost allowance, GST input tax credits, the quick method, loss carry-overs, the principal residence exemption, local licence rules and other provinces, and it treats the rental as rental income, not a business. Your local government and strata decide whether you may host. Book a free 15-minute call before you file or list.
Your short-term rental, line by line
Bookings, every cost with where it comes from, the taxes guests pay and who sends them in, the income tax, then what the numbers mean and what to do next. It follows every change you make above.
| Line | Amount |
|---|
What this means
What to do next
Want the rental kept in your books and on your return each year? See the Personal full suite, or the Business full suite for several units.
2026 figures this calculator uses
Every rate comes from the same 2026 engine as our other calculators, with the date it was checked.
| Item | What is used | Source, checked |
|---|---|---|
| BC PST on accommodation | 8% of the price of the stay, including cleaning fees; stays of 27 days or more with the same person are exempt | B.C.: Accommodation (May 21, 2026), 30 Oct 2026 |
| MRDT | Up to 3% in participating areas; in the City of Vancouver a further 2.5% Major Events MRDT until January 31, 2030, and GST there is charged on the price plus PST and MRDT | B.C.: Accommodation, 30 Oct 2026 |
| Alberta tourism levy | 6% of the price of stays booked after March 31, 2026 (4% before), including cleaning and booking fees; 28 days or more exempt | Alberta: Tourism levy, 30 Oct 2026 |
| GST | 5% on stays under a month at more than $20 a day. Not registered: a registered platform collects it on its bookings. $30,000 of taxable sales over four quarters is flagged | CRA: Platform-based short-term accommodation, 30 Oct 2026 |
| BC registration | $100 a year where you live; $450 for a suite, accessory dwelling unit or secondary unit; plus a $1.50 service fee | B.C.: Register as a host (July 23, 2026), 30 Oct 2026 |
| Denied expenses | Deductible expenses × non-compliant short-term rental days ÷ the days the property was a short-term rental in the year (rented or offered for stays under 90 days in a row), from 2024 | Income Tax Act, s.67.7, 2 Nov 2026 |
| Income tax | 2026 federal and BC or Alberta brackets and credits: tax with the rental profit minus tax without it | Income tax calculator engine (sources listed there), and CRA Guide T4036 |
How it's calculated
Blank, negative or text boxes count as zero. Percentages are capped at 100, and nights and days at 365 (2026 has 365 days).
- Bookings. Nightly rate × nights booked, plus the cleaning fee × the number of stays (nights ÷ average stay, rounded). Taxes are left out: they belong to the government.
- Platform fees. Your host fee % of the nightly price plus cleaning fee, on the nights booked through a platform only.
- Costs. Cleaning and supplies × stays, plus the rental-only yearly costs, all in full. Shared costs are reduced by your personal share; only the rest is deductible.
- Profit before income tax. Bookings minus deductible costs, for the whole property; your share is that × your ownership share.
- Out of compliance. Deductible costs × the non-compliant short-term rental days ÷ the days the property was a short-term rental in the year (not 365) are added back for income tax only. The cash you kept doesn't change; the tax does.
- Income tax. 2026 federal and provincial income tax on your other income plus your share of the profit, minus the tax on your other income alone.
- Taxes on top. BC: 8% PST and the MRDT you choose on bookings; in the City of Vancouver also 2.5% and GST on the provincial taxes. Alberta: 6% levy. GST at 5% on platform bookings when you aren't registered, on every stay when you are. In Alberta GST is worked out on the price of the stay only. The platform's part and your part are shown separately.
- Break-even nights. The yearly fixed costs (rental-only costs plus the rental share of shared costs) divided by what one booked night leaves after the platform fee, cleaning and supplies, rounded up.
A guest suite in a BC home, 150 nights
Round illustrative figures, not a recommendation. The suite is 25% of the home's floor space, in an area with 3% MRDT, listed only on one platform with a 3% host fee. The host isn't registered for GST and earns $70,000 from a job.
| Line | Amount |
|---|---|
| 150 nights at $160 | $24,000 |
| Cleaning fees, 50 stays at $90 | $4,500 |
| Bookings, before tax | $28,500 |
| Platform host fee, 3% | −$855 |
| Cleaning, 50 × $70, and supplies, 50 × $12 | −$4,100 |
| BC registration for a suite ($450 + $1.50) | −$452 |
| Rental share of $26,000 of home costs (25%) | −$6,500 |
| Profit before income tax | $16,594 |
| 2026 income tax it adds (federal and BC) | −$4,679 |
| After income tax | $11,914 |
The guests also paid $4,560 on top: PST $2,280 (8%), MRDT $855 (3%) and GST $1,425 (5%), all collected by the platform on its bookings. None of it is the host's income. Each booked night leaves about $156.97 after fees, cleaning and supplies (($28,500 − $855 − $4,100) ÷ 150), so the year's $6,952 of fixed costs is covered after 45 nights. Figures are rounded to the dollar; the profit is $16,593.50 before rounding.
If the suite was listed all year (365 short-term rental days) with no BC registration on any of them, 365 ÷ 365 of the $11,907 of costs could not be deducted. The host would still keep $16,594 in cash, but the income tax would be about $8,037, so after tax about $8,557.
Rules and cautions the numbers depend on
The calculator assumes you are allowed to host and that the rental is reported as rental income. These are the points that change the answer most.
BC rules
- BC requires provincial registration for most short-term rentals, subject to exemptions. Check both the property's exemption status and applicable local requirements.
- In many communities the principal residence requirement limits hosting to the home you live in plus one secondary suite or accessory dwelling unit.
- Your city or regional district may require a business licence, and your strata bylaws can ban short stays altogether.
Details in short-term rental rules in BC and Alberta.
Alberta rules
- No provincial registry like BC's; cities such as Calgary and Edmonton require a business licence.
- The 6% tourism levy is registered for and remitted by whoever collects payment: the platform, or you on direct bookings.
- Condominium bylaws can restrict short stays whatever the city allows.
Taxes on stays: GST, PST and accommodation levies.
Principal residence and CCA
- Capital cost allowance is left out. It can't generally create a rental loss and can come back as recapture when you sell.
- Claiming CCA on part of the home you live in can mean that part loses its principal residence status, so part of the gain may be taxed when you sell.
- Structural changes to create a suite, or renting most of the home, can change the answer too. Decide with your numbers, not by default in tax software.
More in short-term rental deductions and CCA and the capital gains guide.
When it may not be rental income
- Offering hotel-like services (meals, daily cleaning, tours) can make it a business, with CPP on the profit and different rules.
- Renting to family below market rent can limit the expenses you claim.
- Selling a property used mostly for short stays, or switching it to long-term rent, can have GST and income tax effects. Ask before you list it for sale.
This is general information, not legal advice; we work alongside your lawyer on anything about title, strata bylaws or contracts.
Who this is for and what it leaves out
Who this is for
- Hosts in BC or Alberta renting a suite, a home while they are away, a cabin or a condo for stays under a month, who want the year's profit and tax in one place.
- Anyone deciding whether a suite is worth listing, or what occupancy it needs to cover its costs.
- Hosts checking what their platform collects and what they must remit themselves on direct bookings.
What it leaves out
- CCA, GST input tax credits, the quick method, loss carry-overs and the principal residence exemption.
- Tax already paid and refund or balance owing: the rental income calculator and the income tax calculator do that.
- Seasonal rates by month, several units, business income and other provinces.
- Whether you are allowed to host: your local government, the BC registry and your strata decide.
Sources, checked 30 Oct 2026
Rules have exceptions and can change. This page is general information, not legal or tax advice for your situation.
- B.C.: Accommodation, publication date May 21, 2026 (8% PST, up to 3% MRDT, 2.5% Major Events MRDT in Vancouver, 27-day exemption)
- Alberta: Tourism levy (6% for stays booked after March 31, 2026; 28-day exemption; who remits)
- B.C.: Register as a host, last updated July 23, 2026 ($100 and $450 a year, plus $1.50)
- B.C.: Principal residence requirement, last updated September 21, 2026
- CRA: Platform-based short-term accommodation (who collects GST)
- CRA: Guide T4036, Rental Income
- Income Tax Act, section 67.7 (non-compliant short-term rentals)
Want your rental reported the way it really runs?
Book a free 15-minute call by video or phone, or meet us in Surrey, Edmonton or Courtenay. Tell us how you host and how the property is used, and we'll explain what we'd look at: personal use, CCA, GST and the local rules. Pricing is on the Personal full suite page; we confirm your price before any work starts.
Which office?
Book a free 15-minute call15-minute calls every weekday at 10 am and 2 pm Pacific (11 am and 3 pm Mountain), except holidays.
Typical next slots, confirmed when you book:
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Short-term rental profit and tax, answered
How do I work out my short-term rental profit?
Start with what guests paid you for the stays, before PST, MRDT, the tourism levy and GST: nightly rate times nights booked, plus cleaning fees. Take off the platform's host fee, cleaning and supplies for each stay, registration and licence fees, and the rental share of costs you share with your own use, such as mortgage interest, property tax, insurance and utilities. What is left is your profit before income tax.
Are the PST, MRDT and tourism levy part of my income?
No. In BC, 8% PST and up to 3% MRDT, and in Alberta the 6% tourism levy for stays booked after March 31, 2026, are charged to the guest on top of the price and sent to the government. A booking platform registered to collect them does so on its bookings; on direct bookings you collect and remit them yourself. They are not your income and not your expense.
Do I need to charge GST on a short-term rental?
Stays of less than a month at more than $20 a day are generally taxable for GST at 5%. If you are not registered, a registered booking platform generally collects GST on its bookings and your direct bookings carry none. Once your taxable sales pass $30,000 in four consecutive calendar quarters you generally must register, and then you charge GST on every taxable stay and can claim input tax credits.
What happens to my deductions if my rental breaks local rules?
Since the 2024 tax year, section 67.7 of the Income Tax Act denies the expenses of a short-term rental for the time it does not comply with provincial or municipal rules, such as BC's registration and principal residence requirement or a city business licence. The income is still taxed. The share denied is the non-compliant short-term rental days divided by the days the property was a short-term rental in the year, not by 365. The calculator asks for both.
How is personal use handled?
Costs that exist only because of guests, such as platform fees, cleaning between stays and guest supplies, are deducted in full. Costs you share with your own use are split on a reasonable basis you apply the same way every year: floor space for a suite in the home you live in, or days rented against days you use it for a cabin or condo. The personal share is not deductible.
Should I claim CCA on my short-term rental?
Capital cost allowance is optional and this calculator leaves it out. On rental income it generally cannot create or increase a loss, it can come back as recapture when you sell, and claiming it on part of the home you live in can cost part of your principal residence exemption. It is a decision to make with your own numbers before you file.
What are the BC short-term rental registration fees?
BC's provincial registry charges $100 a year to register a short-term rental where you live, such as your home while you are away or bedrooms in it, and $450 a year for a secondary suite, an accessory dwelling unit on your property or a secondary property where the principal residence requirement does not apply, plus a $1.50 service fee. Your local government may also require a business licence.
Is this the same as the rental income calculator?
No. The rental income calculator is for long-term rentals and for working out the tax on rent you report with your other income and tax already paid. This one starts from nightly rates and occupancy and adds what only short stays have: platform fees, cleaning turnovers, PST and MRDT or the tourism levy, GST collected by platforms, the BC rules and break-even nights.