Property Taxes on Your T2125
Deduct property taxes on commercial or business premises — but home property taxes go elsewhere.
What You Can (and Can't) Deduct
Know exactly what belongs on Line 9180 — and what the CRA says doesn't qualify.
What Qualifies
- Municipal and realty taxes on dedicated business property
- Property taxes on commercial buildings, warehouses, and studios
- Property taxes on rental properties used for business (e.g., Airbnb)
Does NOT Qualify
- Home property taxes (claim in Part 7, Line 9945 as business-use-of-home)
- Property taxes already included in your rent payment
Rules & Limits
Special CRA rules and percentage limits that apply to property taxes.
Special Rules
Home Property Taxes Belong in Part 7
Heads upIf you work from home, your property taxes are claimed in Part 7 (Line 9945) of the T2125, proportional to your workspace percentage. They do not go on Line 9180.
Real-World Examples
See how different professionals use Line 9180 deductions in practice.
Annual Property Taxes on Rental Property
Paid annual municipal property taxes on a dedicated short-term rental property.
$4,200
$4,200 (100%)
Taxes on Warehouse Property
Paid property taxes on a warehouse used for storing materials and equipment.
$3,600
$3,600 (100%)
Common Mistakes to Avoid
These errors on Line 9180 can trigger a CRA review — here's how to get it right.
Claiming home property taxes here instead of in Part 7 (Line 9945)
Home property taxes for a home office must be claimed in Part 7 (Line 9945) as part of your business-use-of-home calculation, not on Line 9180.
Claiming property taxes that are already included in rent
If you rent your business premises and property taxes are included in your rent, do not claim them separately on Line 9180 — they are already covered by your rent deduction on Line 8910.
Commonly Confused Categories
These categories are often mixed up with Property Taxes. Here's the difference.
Sample Receipt Walkthrough
See how ScanForTax processes a typical property taxes expense.
City of Toronto
2025-02-28
Ontario
How ScanForTax categorizes this
ScanForTax identifies this municipal tax bill and auto-categorizes it under Property Taxes (Line 9180). Property taxes are not subject to HST, so there is no ITC to claim.
Frequently Asked Questions
Where do I claim property taxes on my home office?
Can I claim property taxes if they are included in my rent?
Related Professions
Profession-specific guides that frequently use Property Taxes deductions.
Tax Guides by Province
See how tax recovery works for property taxes expenses in each province.
Related Expense Categories
Tax deadline is April 30th.
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