Ontario Property Tax Credit in Long-Term Care and Retirement Homes

You Don't Need to Own a House to Claim

Moving into a long-term care home or retirement residence doesn't end your eligibility for provincial property tax credits. The Ontario Energy and Property Tax Credit (OEPTC) covers both property owners and people who pay rent or accommodation costs — including residents of care facilities. The rules are just different depending on the type of facility.

Long-Term Care Homes (Public and Non-Profit)

If a public or non-profit long-term care home did not pay full municipal and school property taxes, residents enter the accommodation charges paid by or for them on Line 61230 of Form ON-BEN. The CRA treats 20% of those costs as eligible occupancy cost within the OEPTC's energy component.

Long-term care accommodation in Ontario is set by the province. The maximum basic-room co-payment was $2,036.40/month through June 2025 and $2,085.37/month from July 1, 2025. At those rates, a resident in a basic room all year paid about $24,731; 20% of that — about $4,946 — enters the OEPTC energy component calculation.

The property tax component of the OEPTC doesn't apply when you use Line 61230. You're claiming through the energy component only. For seniors 64+, the energy component maximum is $290, so the actual credit amount is modest — but it's money that many care home residents don't know they can claim.

Retirement Homes (Private)

Private retirement homes are treated differently. If you pay an all-inclusive monthly fee that bundles rent, meals, and personal care, the CRA needs you to separate the rent portion from care services. Only the rent portion goes on Line 61100 (the same line used by regular renters).

Contact the retirement home's management and request a written breakdown. Many facilities provide this routinely for tax season, but some need to be asked. The letter should state the monthly rent portion separately from care, meals, and activity fees.

Once you have the rent figure, the OEPTC calculation works exactly like it does for any other renter: 20% of annual rent becomes your occupancy cost.

The OSHPTG Is Off the Table

The Ontario Senior Homeowners' Property Tax Grant requires you or your spouse or common-law partner to own and occupy an Ontario principal residence on December 31, with eligible property tax paid for the year. A long-term care home or retirement residence is not itself an owned home; if your spouse remains in your owned home, the separate spousal rules below may still apply.

If your move is temporary, confirm your situation with the CRA. OSHPTG eligibility depends on the residence and occupancy rules for the applicable year; a temporary stay by itself does not guarantee eligibility.

When One Spouse Moves to Care and the Other Stays Home

This is a common situation. If spouses live apart for medical reasons and maintain separate principal residences in Ontario on December 31, each may apply individually for the OEPTC by checking Box 61080 (involuntary separation) on Form ON-BEN. Their OEPTC claims are calculated as if they were single.

The OSHPTG has a separate rule. If both spouses are 64 or older and apply individually, only the spouse who lived in the owned home on December 31 may claim it. If only one spouse is 64 or older and both tick Box 61080, neither is eligible for the OSHPTG; the older spouse may instead apply under the regular couple rules if otherwise eligible. The spouse at home reports eligible property tax on Line 61120, while the spouse in care may report accommodation costs on Line 61230 for their separate OEPTC claims.

Don't Skip the Tax Return

Many long-term care residents assume there's no point filing a tax return because their income is too low to owe taxes. But the OEPTC is a refundable credit — it pays out even if you owe nothing. Filing a T1 return with Form ON-BEN attached is the only way to receive it.

If the resident can't file independently, a family member or volunteer can complete the return. CVITP free tax clinics handle long-term care residents' returns regularly. For formal CRA access, the helper needs authorization via Form AUT-01 or the Represent a Client online portal.

The Ontario Property Tax Relief for Seniors guide covers all three accommodation scenarios — home, retirement residence, and long-term care — with worked OEPTC calculations for each.

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