Québec Airbnb taxation: GST, QST, lodging tax, and income tax

Renting a chalet short-term in Québec triggers three distinct tax regimes: consumption taxes (GST/QST), lodging tax, and income tax on net rental income. Here's how each works.

1. GST (5%) and QST (9.975%)

If your short-term rental revenue exceeds $30,000/yr, you must register for GST and QST and collect 14.975% on every night. Airbnb has been collecting these taxes automatically in Québec since 2019 and remits them on your behalf if you provide your registration numbers.

2. Lodging tax (3.5%)

A 3.5% lodging tax applies to every tourist-residence night in Québec. Airbnb collects and remits it to Revenu Québec automatically. No action required from the owner in most cases.

3. Income tax on net income

You report net income (revenue minus deductible expenses) federally and provincially like any rental income. Deductible expenses include:

• Mortgage interest (but not principal)
• Municipal and school taxes
• Insurance
• Electricity, internet, cleaning, concierge
• Building depreciation (CCA class 1, 4% declining balance)
• Furniture and appliance depreciation (CCA class 8, 20%)

The depreciation trap

Building depreciation reduces current-year tax but is recaptured on sale. If the sale produces a gain, the previously deducted depreciation is added back to income in the year of sale. Discuss with your accountant before claiming CCA.

Sources

• Revenu Québec — Short-term rental
• Canada Revenue Agency — IT-128R (amortization)
• Lodging Tax Act — RLRQ T-0.3