How to Fill Out the T1159 Income Tax Return for Artists

What Is the T1159 Form and Who Needs It?

Quick tip: download the official T1159 first, then fill it while following this guide: Download T1159 form (official CRA).

The T1159 Income Tax Return for Electing Under Section 216 is a special tax form issued by the Canada Revenue Agency (CRA). It is designed for non-residents of Canada who earn specific types of Canadian income — most commonly rental income from Canadian properties, timber royalties, or certain pension payments.

If you are a newcomer who has left Canada but still owns property here, or if you are a non-resident artist earning income from performances in Canada, this form may apply to you. The T1159 allows you to elect under Section 216 of the Income Tax Act to file a separate Canadian return on your net income (after expenses) rather than having a flat 25% withholding tax applied to the gross amount.

Why This Matters for Newcomers

Many newcomers to Canada buy rental property early in their immigration journey. If you later move away from Canada — perhaps returning to your home country or relocating for work — you become a non-resident. Without filing a T1159, the payer of your rental income (or your property manager) must withhold 25% of the gross rent and send it to the CRA. By filing this form, you can claim expenses like mortgage interest, property taxes, and maintenance, often resulting in a much lower tax bill.

Step-by-Step: Filling Out the T1159

Step 1: Gather Your Documents

Before you start, collect the following:

• NR4 slip — Statement of Amounts Paid or Credited to Non-Residents of Canada. Your payer or property manager issues this.
• Rental income records — total gross rent received during the tax year.
• Expense receipts — mortgage interest, property taxes, insurance, repairs, property management fees, and utilities you paid.
• Your Social Insurance Number (SIN) or Individual Tax Number (ITN) if you have one.

Step 2: Complete the Identification Section

At the top of the T1159, enter:

• Your full legal name as it appears on your Canadian tax records
• Your mailing address (this can be outside Canada)
• Your SIN or ITN — if you never received a SIN, you can apply for an ITN using Form T1261
• The tax year you are filing for
• Your country of residence for tax purposes

Step 3: Report Your Canadian Rental or Section 216 Income

In the income section, report the gross rental income you received from Canadian sources. This amount should match what appears on your NR4 slip (Box 16). If you have multiple properties, report each separately.

Common income types reported on the T1159 include:

1. Rental income from real property in Canada
2. Timber royalties
3. Certain pension benefits (if electing under Section 217)

Step 4: Claim Your Expenses

This is where the T1159 saves you money. You can deduct reasonable expenses related to earning the income:

• Property taxes — the municipal taxes you paid on the rental property
• Mortgage interest — only the interest portion, not the principal repayment
• Insurance — property insurance premiums
• Repairs and maintenance — amounts spent keeping the property in good condition
• Property management fees — if you hired a Canadian property manager
• Advertising — costs to find tenants
• Utilities — if you paid them rather than the tenant

Your net income is the gross rental income minus these deductions. This is the amount you pay tax on.

Step 5: Calculate Your Tax Owing

The T1159 uses a graduated tax rate on your net income, just like a regular Canadian tax return. The federal tax rates for 2026 are applied to your net Section 216 income. You do not get personal tax credits (like the basic personal amount) unless your Section 216 income is your only worldwide income or you elect under certain provisions.

If tax was already withheld on your behalf (shown on the NR4 slip), you can claim that as a credit. Many filers find they are owed a refund because the 25% withholding on gross income exceeds the tax on net income.

Step 6: Sign and File

Sign the form and mail it to the Winnipeg Tax Centre:

Canada Revenue Agency
Post Office Box 14001, Station Main
Winnipeg MB R3C 3M3
Canada

The filing deadline for a Section 216 return is June 30 of the year following the tax year — but to avoid penalties, aim to file by the standard April 30 deadline if possible. If you owe a balance, interest accrues from April 30.

Common Mistakes Newcomers Make

• Not filing at all: If you don't file a T1159, the 25% gross withholding becomes your final tax. You lose the chance to claim expenses and get a refund.
• Missing the NR6 form: If you want reduced withholding during the year (not just a refund after filing), you need to file Form NR6 with the CRA before the rental income is paid. This is a separate step from the T1159.
• Forgetting provincial tax: As a non-resident, you generally do not pay provincial tax on rental income, but confirm your situation with the CRA.
• Using the wrong form: The T1159 is only for Section 216 elections. If you are a resident of Canada, you file a regular T1 return instead.
• Not keeping receipts: The CRA can ask for proof of every expense you claim. Keep receipts for at least six years.

Tips for Newcomers Who Have Left Canada

If you came to Canada as a newcomer, bought property, and then moved away, here are some important things to know:

• You must notify the CRA of your change in residency status. This is separate from filing the T1159.
• Your property manager or tenant must withhold 25% of gross rent and remit it to the CRA unless you file an NR6 to reduce this.
• You can appoint a Canadian agent (using Form NR301 or similar) to handle your tax affairs.
• Currency conversion matters — if you paid expenses in a foreign currency, convert them to Canadian dollars using the Bank of Canada exchange rate for the date of the transaction.

Where to Find the T1159 Form

You can download the T1159 form directly from the CRA website at canada.ca/en/revenue-agency/services/forms-publications/forms/t1159.html. The form is available in both English and French. You can fill it out on your computer (it is a fillable PDF) and then print it for mailing.

As of 2026, the T1159 cannot be filed electronically through NETFILE. You must print and mail it.

Getting Help

If you are unsure whether you need to file a T1159 or a regular T1 return, contact the CRA's non-resident enquiries line at 1-855-284-5946 (from outside Canada) or 1-800-959-8281 (from within Canada). WelcomeAide also connects newcomers with free tax clinics that can help with non-resident filing situations.

Filing the right form can save you hundreds or even thousands of dollars in taxes. Don't leave money on the table — if you earn Canadian rental income as a non-resident, the T1159 is your best friend.

Download This Form

Before you submit anything, download the latest official file here: Download T1159 form (official CRA). Always use the latest version.

Related internal guides

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Official external resources

• Download T1159 form (official CRA)
• IRCC forms and guides library
• IRCC document checklists
• CRA forms and publications
• IRCC processing times

Beyond T1159: Essential Tax Considerations for Self-Employed Artists

While the T1159 form addresses specific international tax treaty exemptions for artists, many artists in Canada operate as self-employed individuals, even if they are newcomers. Understanding your general tax obligations as a self-employed artist is crucial for financial success and compliance. Unlike employees, self-employed artists are responsible for reporting their business income and expenses using Form T2125, Statement of Business or Professional Activities, as part of their annual income tax return. Key considerations include:

• Tracking Income and Expenses: Diligent record-keeping is paramount. Keep all receipts for art supplies, studio rent, marketing, professional development courses, travel for performances or exhibitions, and any other costs directly related to your artistic practice. These expenses can significantly reduce your taxable income.
• GST/HST Registration: If your total taxable revenues from your artistic activities exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters, you are generally required to register for a Goods and Services Tax/Harmonized Sales Tax (GST/HST) account and begin collecting and remitting these taxes. You can find more details on self-employment and GST/HST on the official Canada Revenue Agency (CRA) website: CRA Small Businesses and Self-Employed Individuals.
• Separate Bank Accounts: It's highly recommended to open a separate bank account for your artistic business. This makes tracking income and expenses much simpler and clearer, especially during tax season. Our Banking Comparison tool can help you find suitable options for your financial needs.

For a comprehensive overview of Canadian tax regulations, especially as a newcomer, explore our dedicated Tax Guide, which provides practical information and steps to help you navigate the system.

Essential Resources and Support for Newcomer Artists in Canada

Navigating the Canadian arts landscape as a newcomer artist can present unique opportunities and challenges. Beyond understanding tax forms like the T1159, knowing where to find support and resources can be invaluable for establishing your practice and integrating into the community. Consider these avenues for assistance:

• Settlement Services: Many organizations across Canada offer free settlement services for newcomers, providing assistance with everything from language training and housing to employment support. These services can help you understand the broader context of living and working in Canada. Our Settlement Checklist can guide you through the essential steps of settling in.
• Arts Councils and Associations: Canada boasts a vibrant arts community with numerous provincial and national arts councils (e.g., Canada Council for the Arts) and professional artist associations. These bodies often provide grants, networking opportunities, and resources tailored to specific artistic disciplines. While they may not directly assist with tax forms, they can be crucial for career development.
• Government Benefits and Programs: Depending on your circumstances and income, you may be eligible for various government benefits and programs designed to support low-income individuals or families, or specific cultural initiatives. Use our Benefits Finder to explore potential financial support options available to you.
• Community and Peer Support: Connecting with other artists, especially those who have successfully navigated the system as newcomers, can provide invaluable mentorship and shared experiences. Look for local artist collectives, workshops, and cultural events to build your network.

Remember, you don't have to navigate everything alone. For any specific questions about your unique situation, our AI Navigator can provide quick answers and direct you to further resources. You can also explore general newcomer information and services through Immigration, Refugees and Citizenship Canada (IRCC) at IRCC website

Related Resources

WelcomeAide Tools

• WelcomeAide Blog — browse all newcomer guides and updates
• Ask WelcomeAide AI — get personalized answers to immigration questions
• Newcomer Checklist — track your immigration and settlement steps
• Rights Guide — understand legal rights and protections in Canada
• Settlement Programs — find settlement and integration support services

Related Guides

• Guide to the T1 Adjustment Request (T1-ADJ): How to Fix
• Guide to the T1161 List of Properties by an Emigrant of
• T1013 Form Guide (2026): Authorize a CRA Representative

Official Government Sources

• IRCC — Immigration, Refugees and Citizenship Canada
• Immigrate to Canada — Official Programs
• IRCC Processing Times
• IRCC Visas and Entry Requirements
• Canada.ca Immigration and Citizenship Services
• Canadian Citizenship Resources

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