Own a vacation home in Florida, a condo in Arizona, or any other U.S. rental property? If you’re a Canadian resident, you almost certainly need a U.S. Individual Taxpayer Identification Number — and the process is more manageable than you might think.
Many Canadians — from Toronto and the Greater Toronto Area to Vancouver, Calgary, Edmonton, Ottawa, and beyond — have purchased investment or vacation properties in the United States. When those properties generate rental income, the IRS requires that tax be withheld and reported, which means you need a U.S. Individual Taxpayer Identification Number (ITIN) to file your U.S. tax return and, in many cases, to claim benefits under the Canada–U.S. Tax Treaty.
This guide explains who needs an ITIN, why it matters for U.S. rental income, and exactly how to apply — whether you’re in Toronto, Ontario, or anywhere else in Canada.
An ITIN (Individual Taxpayer Identification Number) is a nine-digit tax processing number issued by the IRS to individuals who are not eligible for a Social Security Number (SSN). For Canadian residents earning U.S.-sourced income, an ITIN is the key that allows you to file a U.S. tax return, receive refunds, and reduce withholding tax under the Canada–U.S. Tax Treaty.
Do You Need an ITIN for U.S. Rental Income?
If you are a Canadian resident (not a U.S. citizen or green card holder) who earns rental income from a property located in the United States, you are a Non-Resident Alien (NRA) in the eyes of the IRS. As an NRA, you are generally subject to a 30% withholding tax on your gross rental income — unless you take steps to reduce it.
You will need an ITIN if any of the following apply to you:
- You receive rental payments from U.S. tenants or a U.S.-based property manager
- You want to file a U.S. non-resident tax return (Form 1040-NR) to report net rental income and potentially receive a refund of over-withheld tax
- You wish to make a “net income election” so that you are taxed on net rental profit rather than gross rental receipts
- You need to claim reduced withholding rates available under the Canada–U.S. Tax Treaty
- You are selling U.S. property and need to file a FIRPTA withholding certificate or U.S. tax return
Step-by-Step: How to Apply for a U.S. ITIN as a Canadian Resident
1. Confirm You Have a Tax Filing Reason
The IRS only issues ITINs to individuals who have a valid U.S. tax purpose. For Canadians earning rental income, this is almost always met — your reason is the requirement to file a U.S. non-resident tax return (Form 1040-NR). You cannot apply for an ITIN simply “in case” you need one someday.
2. Prepare Form W-7
Form W-7 — Application for IRS Individual Taxpayer Identification Number — is the core ITIN application form. You’ll indicate the reason for applying (most Canadian rental property owners select exception (c): “Passive income” or attach a completed Form 1040-NR) and provide personal details exactly as they appear on your identity documents.
The IRS requires original documents — or certified copies — to verify your identity and foreign status. A valid Canadian passport is the single document that satisfies both requirements on its own and is by far the most straightforward option for Canadians across Ontario and the rest of Canada.
Most applicants must attach a completed U.S. tax return to their W-7. Alternatively, working with an IRS-authorized Certified Acceptance Agent (CAA) allows your identity documents to be verified locally — without mailing your original passport to the IRS. This is especially practical for clients in Toronto and throughout Ontario who want a faster, safer process.
Applications can be mailed to the IRS ITIN Operations Centre or submitted in person at a U.S. IRS Taxpayer Assistance Center. A CAA can also submit on your behalf. Processing times currently run 7–11 weeks, and longer during peak tax season (January through April).
Once issued, your ITIN is used on all U.S. tax filings for the rest of your life (unless it expires due to non-use — see below). Use it to file Form 1040-NR, report your rental income and expenses, and claim any applicable treaty benefits or refunds.
Documents You’ll Need
The IRS accepts 13 types of identity documents for ITIN applications, but for most Canadians the simplest approach is:
- Canadian passport (preferred — satisfies identity and foreign status in one document)
- If no passport: Canadian driver’s licence plus a foreign birth certificate or national ID card
- Completed Form W-7
- Completed Form 1040-NR (U.S. Non-Resident Alien Income Tax Return) or qualifying exception documentation
- Supporting rental income documentation (lease agreements, rental receipts, or a statement from your U.S. property manager)
ITIN Renewal: Don’t Let Yours Expire
If you previously obtained an ITIN but have not filed a U.S. tax return in the past three consecutive years, your ITIN may have expired. The IRS also periodically requires renewal of ITINs issued with certain middle digits. An expired ITIN cannot be used on a tax return and may cause your return to be rejected or your refund to be delayed.
If your ITIN has expired or you are unsure of its status, Brij ID can review your situation and help you file Form W-7 to renew it — a service we provide to clients in Toronto, throughout Ontario, and across Canada.
Why Work With a Certified Acceptance Agent?
Mailing your original Canadian passport to the IRS can feel risky and inconvenient. A Certified Acceptance Agent (CAA) is authorized by the IRS to review original identity documents, certify copies, and submit your ITIN application — so your passport never leaves your hands.
At Brij ID, we work with Canadian residents from Toronto and the Greater Toronto Area, Hamilton, Kitchener-Waterloo, Ottawa, and cities across Ontario. We also serve clients throughout Canada — from British Columbia and Alberta to the Maritime provinces — who need ITIN applications completed correctly the first time.
This article is for general informational purposes only and does not constitute tax or legal advice. U.S. and Canadian tax rules are complex and subject to change. Please consult a qualified tax professional for advice specific to your situation.
Ready to get your U.S. ITIN?
Brij ID helps Canadian residents in Toronto, Ontario, and across Canada apply for and renew their U.S. ITINs — accurately, securely, and without sending your passport to the IRS.