Board and lodging
Content has been updated for clarity, completeness and plain language. No changes were made to the current CRA administrative policy.
Generally, if you provide a benefit or an allowance for board and lodging to your employee, the benefit or allowance is taxable. This includes situations where you provide your employee with board and lodging at a cost that is less than the fair market value (FMV) of the benefit.
Depending on your situation, the benefit or allowance for board and lodging you provide to your employee may not be taxable under the Income Tax Act (ITA).
What is the fair market value (FMV)
FMV is the highest price that can be obtained in an open market between an informed and willing buyer and an informed and willing seller who are dealing at arm's length.
Generally, the FMV of a benefit is the price that could be reasonably charged for the use of that benefit in an open market (that is, the market price for a similar benefit in the surrounding area).
This determination must be done based on a review of the facts in each specific situation.
GST/HST on the taxable benefit
If the benefit is taxable, the value of the benefit may include the GST/HST or PST that you are required to pay. You must also include any PST that would have been payable if you were not exempt. For example, meals, utilities, travel assistance and short-term accommodations may be subject to GST/HST.
On this page
Steps
Determine if any exceptions apply to the benefit or allowance
If you provide a benefit or an allowance for board and lodging in one of the following situations, special conditions or rules may apply:
- Your employee works at a remote work location
- Your employee works at a special work site
- Your employee works in a prescribed zone
- Your employee is a member of the clergy, a regular minister or a member of a religious order
If the benefit or allowance is provided in one of the above situations, do not continue to the next step.
Learn more on the above exceptions using the links.
- If the benefit or allowance is not provided in one of the above situations, continue to Step 2 - Determine if the benefit or allowance is taxable.
Determine if the benefit or allowance is taxable
Generally, if you provide a benefit or an allowance for board and lodging to your employee, the benefit or allowance is taxable.
Allowance to a participant or member of a sports team or recreational program
If you provided an allowance to a participant or member of a sports team or recreational program, all or part of the allowance may not be taxable.
If you did not provide an allowance to a participant or member of a sports team or recreational program, the benefit or allowance is taxable.
Continue to: Step 4 - Calculate the value of the benefit.
- If you provided an allowance to a participant or member of a sports team or recreational program, continue to: Step 3 - Determine if the allowance provided to a participant or member of a sports team or recreational program is taxable.
Determine if the allowance provided to a participant or member of a sports team or recreational program is taxable
Under the ITA, if you provide an allowance to a participant or member of a sports team or recreational program for board and lodging, the allowance is not taxable up to the prescribed amount for each month if all of the following apply:
- You are a registered charity or a non-profit organization.
- The participation with or membership on the team or in the program is restricted to persons under 21 years of age.
- The allowance is for board and lodging for a participant or member who has to live away from their ordinary place of residence.
- The allowance is not attributable to any services (such as coaching, refereeing or other services) that your employee provides to the team or program.
Prescribed amount
Prescribed amount adjusted for inflation Year Amount per month 2026 $450 2025 $441 2024 $430 2023 $411 2022 $386 Prior year amounts
Prescribed amount adjusted for inflation in prior years Year Amount per month 2021 $377 2020 $373 2019 $366 2018 $359 2017 $353 2016 $348 2015 $344 2014 $338 2013 $335 2012 $320 2011 $320 2010 $315 2009 $306 2008 $306 2007 $300
If all of the monthly allowances are not taxable because the value is equal to or less than the prescribed amount and the allowance meets all the conditions, you do not need to do any calculations.
Do not continue to the next step because you do not include this amount in the income of the participants.
If all of the conditions are not met or any of the allowances exceeded the prescribed amount, continue to: Step 4 - Calculate the value of the benefit.
Calculate the value of the benefit
If the benefit is taxable, the value of the benefit is equal to:
- FMV of the board and lodging that is taxable, including any applicable GST/HST and PST
- minus Any amounts your employee reimbursed you
- equals Value of the benefit to be included on the T4 slip for board and lodging using code 30 and box 14
If you provided a taxable allowance, the value of the benefit is the amount of the allowance.
If the allowance was provided to a participant or member of a sports team or recreational program and it is more than the prescribed amount but meets all other conditions under the ITA (step 3), only the value over the prescribed amount for board and lodging per month must be included in the employee's income.
The amounts must be included in the pay period they were received or enjoyed.
Example 1 - Calculation
Your company provided your employee with board and lodging at a location that is not considered a special work site or a remote work location. The FMV of the board and lodging provided during the tax year was $2,500. Your employee reimbursed the company $500 for the benefit.
- $2,500 is the FMV of the board and lodging that is taxable
- minus $500 because your employee reimbursed you for the board and lodging
- equals $2,000 is the value of the benefit to be included on the T4 slip for board and lodging using code 30 and box 14
Example 2 - No calculation
A registered charity organizes a community football team for children 18 years of age or under.
The participants are not required to provide any services for the team or program other than playing the sport.
The charity provides an allowance for board and lodging of $300 per month during the football season to the team members who ordinarily reside outside the community and require board and lodging.
The allowance is not a taxable benefit because the value is equal to or less than the prescribed amount and the allowance met all the conditions to be excluded from the income of the participants.
Withhold payroll deductions and remit GST/HST
The withholding and remitting requirement depends on the type of remuneration: cash , non-cash , or near-cash .
If the benefit is taxable, you must withhold the following deductions:
Non-cash and near-cash: Option 1
Withhold:
- Income tax
- CPP
- EI (do not withhold unless cash earnings were also paid in the pay period)
Remit:
- GST/HST in certain situations
Cash: Option 2
Withhold:
- Income tax
- CPP
- EI
Do not remit:
- GST/HST (do not remit)
The amounts must be included in the pay period they were received or enjoyed.
Learn how to calculate deductions and the GST/HST to remit: How to calculate - Calculate payroll deductions and contributions
Report the benefit on a T4 slip
If the benefit is taxable, you must report the following on the T4 slip:
Non-cash and near-cash: Option 1
Report on:
- Box 14 - Employment Income
- Box 26 - CPP/QPP pensionable earnings
- Code 30 - Board and lodging
Cash: Option 2
Report on:
- Box 14 - Employment Income
- Box 24 - EI insurable earnings
- Box 26 - CPP/QPP pensionable earnings
- Code 30 - Board and lodging
Learn how to report the benefit or allowance: T4 slip - Information for employers
References
Legislation
- ITA: 6(1)(a)
- Value of benefits – Board, lodging and subsidized or free rent or other benefit (of any kind)
- ITA: 6(1)(b)
- Taxable allowances (in cash)
- ITA: 6(1)(b)(v.1)
- Allowances for board and lodging to a monthly maximum of $300 (members of a sports team or recreation program)
- ITA: 6(23)
- Employer-provided housing subsidies
- ITA: 117.1(1)
- Inflation indexing of the allowance to be excluded
- CPP: 12(1)
- Amount of contributory salary and wages
- ETA: 173
- Taxable benefit is considered a supply for GST/HST purposes
- IECPR: 2(1)
- Amount of insurable earnings
- IECPR: 2(3)
- Amounts not included in insurable earnings
- IECPR: 2(3)(a.1)
- Amounts not included in insurable earnings when excluded as income under paragraph 6(1)(a) or (b), or subsection 6(6) or (16) of the ITA