Canada Revenue Agency (CRA) Edition T1159 E (25) 2 pages

Form T1159 — Income Tax Return for Electing under Section 216

The 2025 return non-residents file to pay tax on net Canadian rental income or timber royalties instead of 25% of the gross.

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Form T1159 · Income Tax Return for Electing under Section 216
The official Canada Revenue Agency (CRA) form, edition T1159 E (25) — blank
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Form T1159 (2025) Income Tax Return for Electing under Section 216 — page 1 of 2
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Form T1159 (2025) Income Tax Return for Electing under Section 216 — page 2 of 2
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Fill this form online Blank PDF from Canada Revenue Agency (CRA)

What is Form T1159?

A non-resident of Canada who earns rent from Canadian real property, or timber royalties, normally pays 25% non-resident tax on the gross amount, withheld by the tenant or agent. Section 216 of the Income Tax Act lets you elect instead to pay regular Part I tax on the net income, after expenses and certain deductions. Form T1159, Income Tax Return for Electing under Section 216, is the return you file to make that election, and it often produces a refund of part of the tax withheld.

The return is short: identification, gross and net rental income, a few deductions (RRSP, FHSA, support, other), federal tax worked out in one of five brackets, the 48% surtax for non-residents, and the non-resident tax withheld from your NR4 slips. If your agent withheld on the net amount during the year because you filed Form NR6, the T1159 is the return you undertook to file.

FileIt works through every line of the CRA's 2025 edition (T1159 E (25)) from your amounts: it picks the right tax column, applies the rates and fixed amounts printed on the form, adds the surtax, and shows whether you have a refund or a balance owing. The completed PDF is saved in the person's vault folder. You sign it and send it to the CRA yourself; FileIt doesn't file anything.

Who fills it
Non-residents of Canada with Canadian rental income or timber royalties
Tax year
2025 (edition T1159 E (25))
Surtax
48% of federal tax, printed on line 18
Balance owing due
No later than April 30, 2026, as printed on the form
Signatures
Yours, by hand, with your telephone number and date

Who needs to fill out Form T1159?

  • Non-residents who own a rental property in Canada and want to be taxed on net income rather than 25% of gross rent.
  • Non-residents who receive Canadian timber royalties.
  • Non-residents who filed Form NR6 so their agent could withhold on net income during the year.
  • The legal representative of a non-resident who died, filing for the deceased.

When to use Form T1159

  • After the end of the year, once you have your NR4 slips and your rental income and expenses.
  • When the tax withheld at 25% of gross is more than the tax on your net income would be.
  • Each year you want to make the section 216 election. Guide T4144 explains the filing deadlines.

What you need before you start

  • Your SIN, temporary tax number (TTN) or individual tax number (ITN). Form T1261 applies for an ITN.
  • Your mailing address outside Canada, date of birth, and email if you want online mail.
  • Gross rents or royalties and your net income after expenses.
  • Receipts for RRSP or FHSA deductions, support payment details and any other deductions you claim.
  • Your NR4 slips showing non-resident tax withheld, and Form T2064 or T2068 if you remitted tax on recaptured capital cost allowance.
  • Any minimum tax carryover from earlier years.

What’s on Form T1159

The 2025 edition has 2 pages. FileIt asks for it in 7 parts:

  1. IdentificationEmployee
  2. Income and deductionsEmployee
  3. Federal tax on taxable incomeEmployee
  4. Federal taxEmployee
  5. Refund or balance owingEmployee
  6. CertificationEmployee
  7. Tax professionalEmployee

How to fill out Form T1159, step by step

1 Identification

Your name, mailing address with country, email (optional), tax number, date of birth, the date of death if the return is for a deceased person, and your language of correspondence.

2 Income and deductions

Gross and net rental income and timber royalties (line 12600 becomes total income), then RRSP, FHSA, support and other deductions. FileIt adds lines 2 to 5 and works out taxable income on line 26000, never below zero.

3 Federal tax

Your taxable income falls in one of five columns: up to $57,375, up to $114,750, up to $177,882, up to $253,414, or above. FileIt fills the matching column with the threshold, rate (14.5% to 33%) and fixed amount printed on the form.

4 Surtax, credits and the result

Minimum tax carryover comes off, the 48% non-resident surtax goes on, and the non-resident tax withheld (line 43700) and CCA recapture remittances (line 47600) are credited. A negative line 24 is your refund on line 48400; a positive one is the balance owing on line 48500.

Common mistakes to avoid

  • Reporting gross rent on line 12600 instead of net income after expenses.
  • Forgetting to attach the NR4 slips for the tax withheld.
  • Using a Canadian address format for a foreign address, or leaving out the country.
  • Claiming personal credits that this return doesn't provide for.
  • Missing the filing deadline the guide gives for the election, which can make it invalid.

After you fill it out

Print the PDF from your FileIt vault, sign it, and send it to the CRA with your NR4 slips, receipts and other attachments, as Guide T4144 describes. FileIt doesn't send it for you.

If you owe, pay by April 30, 2026; canada.ca/payments lists the options, including for payers outside Canada. If you get a refund, it comes once the CRA has assessed the return. Keep the return with your NR4 slips and NR6 in the person's vault folder.

Fill out Form T1159 online with FileIt

  1. Pick the person. Choose someone from People and FileIt fills in their name, date of birth, address and other details it already knows.
  2. Answer plain-language questions. One part of the form at a time, with the official help text beside each question — 65 fields in all. Your answers save as you go.
  3. Check the live preview. Watch your answers land on the real Canada Revenue Agency (CRA) form, and let FileIt do any worksheet arithmetic.
  4. Generate the official PDF. FileIt prints your answers into the agency’s own PDF and files it in that person’s folder in your vault.

FileIt fills the form — it never files or submits anything for you. Deliver the finished form to whoever asked for it, the way the form’s instructions say.

Start Form T1159 now — it’s free

Form T1159: frequently asked questions

What does electing under section 216 mean?

Choosing to pay regular Part I tax on your net Canadian rental income or timber royalties, instead of the flat 25% non-resident tax on the gross amount.

Why is there a 48% surtax?

Non-residents don't pay provincial or territorial tax on this return, so the form adds a federal surtax of 48% of the federal tax instead (line 18).

Do I need an NR6 to file a T1159?

No. Without an NR6, 25% of the gross rent is withheld during the year and the T1159 can recover the difference. With an NR6, your agent withholds on net income and you must file the T1159.

Can I use the T1159 if I'm a Canadian resident?

No. It's only for non-residents of Canada making the section 216 election.

Official sources

FileIt is not affiliated with or endorsed by Canada Revenue Agency (CRA) or any government. This page explains the form in general terms and is not legal, tax or immigration advice. Always read the official instructions, and check that you are using the edition the recipient accepts. Page last reviewed 2026-10-19.

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