Individual Income Tax

What is Service Fee/PILOT (payment in lieu of taxes) housing?

Service Fee/PILOT housing is an agreement between a municipality and a property owner (private or public) to pay a service fee instead of property taxes. Regardless of the amount of rent paid, the Income Tax Act provides that a renter living in Service Fee/PILOT housing must calculate the property tax credit using only 10% of rent paid. Often, Service Fee/PILOT housing is low income or senior citizen housing that can include an apartment or the rental of a single family home.

Important Note: It is the renter's responsibility to determine if the rental property is Service Fee/PILOT housing before claiming a credit. Service fees are typically less than property taxes.

You can find out if a property is subject to Service Fee/PILOT housing by contacting your city/township/county office.