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T2125 Line 9180

Property Taxes on Your T2125

Deduct property taxes on commercial or business premises — but home property taxes go elsewhere.

Qualifying Expenses

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
CRA Rules

Rules & Limits

Special CRA rules and percentage limits that apply to property taxes.

Special Rules

Home Property Taxes Belong in Part 7

Heads up

If 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 Examples

Real-World Examples

See how different professionals use Line 9180 deductions in practice.

Airbnb Host Line 9180

Annual Property Taxes on Rental Property

Paid annual municipal property taxes on a dedicated short-term rental property.

Amount

$4,200

Deductible

$4,200 (100%)

Construction Contractor Line 9180

Taxes on Warehouse Property

Paid property taxes on a warehouse used for storing materials and equipment.

Amount

$3,600

Deductible

$3,600 (100%)

Watch Out

Common Mistakes to Avoid

These errors on Line 9180 can trigger a CRA review — here's how to get it right.

01
high
Mistake

Claiming home property taxes here instead of in Part 7 (Line 9945)

Correction

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.

02
low
Mistake

Claiming property taxes that are already included in rent

Correction

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.

Don't Mix Up

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.

Receipt

City of Toronto

2025-02-28

2025 Property Tax - Commercial $$4,200.00
Subtotal $$4,200.00
TOTAL $$4,200.00

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.

FAQ

Frequently Asked Questions

Where do I claim property taxes on my home office?
Home property taxes are claimed in Part 7 (Line 9945) of the T2125 as part of your business-use-of-home calculation, proportional to your workspace percentage. They do not go on Line 9180.
Can I claim property taxes if they are included in my rent?
No. If property taxes are included in your rent payment, they are already covered by your rent deduction on Line 8910. Claiming them separately on Line 9180 would be double-counting.

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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