Can Ontario Seniors Claim Property Taxes Paid on a Life Lease?

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At Rabideau Law, we regularly receive questions from seniors and their families about the tax treatment of life leases in Ontario. One common question is:
“If I’m a senior living in a life lease, can I claim the property taxes I pay?”


The short answer:
✅ Yes — but not as a deduction on your tax return.
Instead, Ontario offers two specific tax relief programs that allow eligible seniors to benefit from the property taxes paid on their life lease residence.

Understanding Life Leases

A life lease is a unique form of residential occupancy where an individual pre-pays for the right to occupy a unit for life (or for a set term), but without actually owning the real estate. While you may not hold title, many life lease agreements include a responsibility to pay a portion of the property taxes for the development.

Thankfully, Ontario recognizes this when determining eligibility for certain tax relief programs.

1. Ontario Senior Homeowners’ Property Tax Grant (OSHPTG)

The OSHPTG is designed to provide direct financial support to seniors who pay property taxes on their principal residence.

Eligibility Criteria:

  • You were at least 64 years old on December 31 of the tax year.
  • You lived in Ontario at the end of the year.
  • You occupied a principal residence (including a life lease of 10+ years) and paid property taxes.
  • Your income falls below the program’s maximum thresholds.

How Much Can You Receive?

  • The maximum annual grant is $500.

How to Apply:

  • File your Ontario personal income tax return.
  • Complete Form ON-BEN.
  • Report your property tax amount in the relevant section of the return.

2. Ontario Energy and Property Tax Credit (OEPTC)

The OEPTC provides additional relief for both energy costs and property taxes paid, including those paid by life lease residents.

Eligibility:

  • You were a resident of Ontario on December 31.
  • You paid property taxes or occupied a qualifying residence (including life leases).
  • Income thresholds apply.

Credit Amounts:

  • Seniors may receive up to $1,144 annually based on their specific circumstances.

Application:

  • The OEPTC is also claimed on Form ON-BEN filed with your personal tax return.

Important Note: This Is Not a Deduction

Neither the OSHPTG nor the OEPTC are “tax deductions” that reduce your taxable income. Instead, they are non-taxable credits and grants paid directly to you after filing your return.

You cannot claim property taxes paid on a life lease as an expense or deduction like you might for business or rental purposes. These are personal credits for principal residence occupancy only.

How Rabideau Law Can Help

Navigating life leases and understanding eligibility for various government programs can be complex. At Rabideau Law, we regularly assist seniors, retirees, and families with:

  • Reviewing life lease agreements to clarify financial obligations.
  • Advising on eligibility for government grants and credits.
  • Estate and succession planning involving life leases.
  • Real estate transactions when entering or exiting life lease arrangements.

If you or a loved one is considering a life lease or seeking advice on Ontario’s property tax credits, contact Rabideau Law today for professional, clear, and personalized legal guidance.

519-957-1001
rabideaulaw.ca