A4 Form: Varying a Municipal Tax Rent Reduction in Ontario

The A4 is the Ontario Landlord and Tenant Board (LTB) application to vary the automatic rent reduction that follows a significant drop in a building's municipal property taxes. When taxes fall by more than 2.49%, rents fall by law, using a standard formula the municipality applies. The A4 is how a landlord (or a tenant) argues that the municipality's percentage is wrong for the building.

At a glance

What the A4 is for

Under s. 131 of the Residential Tenancies Act, 2006 (RTA), if the municipal property tax for a residential complex is reduced by more than 2.49%, the lawful rent for every unit is reduced automatically, effective December 31 of the year the tax reduction takes effect (O. Reg. 516/06, s. 41). The reduction is the percentage tax decrease multiplied by 20% for multi-residential class properties and by 15% otherwise. For complexes with seven or more units, the municipality must send a Notice of Rent Reduction to the landlord between June 1 and September 15 and to tenants between October 1 and December 15.

Section 132 and O. Reg. 516/06, s. 42 let a landlord or tenant apply to vary that amount on four grounds, which match the four reasons on the form. The Board then sets the percentage rent reduction by order.

The A4 does not apply to units exempt from the rent rules under s. 6.1 (buildings, additions or certain second units first occupied for residential purposes after November 15, 2018), because s. 132 is among the sections that do not apply to them.

When to use it (and when not to)

• Reason 1: the municipality levied other charges on you in the base year that it did not count. User fees, such as garbage, and special levies can count. Inspection charges, emergency or by-law repair charges, capital-work charges, vital-service costs, and penalties, interest and fines cannot.
• Reason 2: your actual property taxes are not 20% (multi-residential) or 15% (other) of the complex's annual rent revenue. The Board then recalculates using real rent revenue. Landlords whose taxes are a smaller share of revenue than the formula assumes often benefit.
• Reason 3: the notice contains an error in the tax decrease or in the rent reduction.
• Reason 4: the base-year taxes were increased or decreased after the notice, for example after a reassessment or appeal, and before March 31 of the year after the reduction took effect.
• Not for a tenant's own application under s. 133 for a reduction because municipal taxes and charges fell (the tenant's Rent Reduction application, Form T3), and not for an above-guideline increase when taxes rose (that is an L5).

Deadlines and limitation periods

Apply on or before the later of:

• 90 days after you were given the Notice of Rent Reduction. If no notice was required (fewer than seven units), count 90 days from when the tax notice effecting the decrease was issued; and
• March 31 of the year after the year in which the rent reduction takes effect (O. Reg. 516/06, s. 42(2)).

The form and instructions describe the 90 days as running from when the municipality "issued" the notice, while the regulation counts from when the applicant was "given" it. Use the earlier date to be safe.

This deadline is set by regulation. The Board's power to extend time does not extend to prescribed time requirements, and s. 132 is not on the list of applications whose filing time the Board can extend (RTA s. 190). Treat it as a hard deadline. Remember too that mail is filed only on the fifth non-holiday day after mailing (Rule 4.8).

The Board may order you to serve the application (Rule 5.2). For a written hearing, serve within 20 days after the Board issues the notice (Rule 5.6). For an oral hearing, serve at least 30 days before the hearing date (Rule 5.7). File the Certificate of Service within five days of serving (Rule 5.15).

How to fill out the A4, section by section

The current form is version 01/04/2022. Complete Parts 1, 2, 3 and 5, and Part 4 if you choose Reason 2 or want revenue considered. Print or type in capital letters. See the A4 instructions.

Part 1: General Information

• Applicant Information. Shade "Landlord". Name or company name, address, phones, email.
• Address of the Rental Unit, Building or Residential Complex. The street address of each building in the complex covered (attach a sheet if needed).
• Other Parties to the Application. Shade "Tenant". For a building-wide application, name one tenant here and list every other tenant (with unit numbers) on a Schedule of Parties.
• Notice of Rent Reduction. If the municipality gave you one, you must attach it.
• Related Applications. File numbers of unresolved applications.

Part 2: Information about Municipal Property Taxes

Enter the base year (the calendar year in which the rent reduction takes effect, which is the year the tax decreased) and the reference year (the calendar year before it), with total property taxes for the complex for each. Include only property and education taxes, not special levies, penalties or user fees. Attach the tax bills or other evidence for both years.

Part 3: Reasons for Your Application

Shade every reason that applies:

• Reason 1: enter the total other charges for the base and reference years and attach evidence.
• Reason 2: shade whether the complex is in the multi-residential tax class, then complete Part 4.
• Reason 3: explain the error, why it is an error, the percentage you say is correct, and how you calculated it.
• Reason 4: attach evidence of the change in base-year taxes, such as a reassessment or appeal decision.

Part 4: Information about Rent Revenue

Enter the total annual rent revenue for the complex for the base year. It is mandatory for Reason 2: without it, the instructions say the Board cannot consider the application. Have evidence of the rents ready (O. Reg. 516/06, s. 44).

Part 5: Signature

Shade "Landlord" or "Representative", sign and date. A representative adds their Law Society number and contact details.

Filing it

• Email: pay $201 online (Visa or Mastercard, credit or debit), then within 24 hours email the application, notice, evidence and receipt to LTBpayments@ontario.ca, with the receipt number and address in the subject line.
• Mail or courier: certified cheque or money order to the "Minister of Finance", or credit card on the Credit Card Payment Form.
• ServiceOntario: in person at a location that accepts LTB filings.

Fees are non-refundable; see the LTB fees page. A Fee Waiver Request is available.

Mistakes that get it refused, voided or dismissed

1. Missing the deadline. It is prescribed by regulation and the Board cannot extend it, so a late A4 fails.
2. Reason 2 without Part 4. Without the base-year rent revenue, the Board cannot consider a Reason 2 claim.
3. No tax evidence or no notice. O. Reg. 516/06, s. 44 requires evidence of taxes for both years, evidence of other charges (Reason 1) and rents (Reason 2), and a copy of the notice if one was given.
4. Counting excluded charges. Penalties, interest, inspection and repair charges, capital-work charges and vital-service costs are excluded by s. 41(2). Including them undermines the whole calculation.
5. Not naming all affected tenants. The Board and any service you are directed to carry out work from your Schedule of Parties. A tenant who was never named or served has not had notice of the application. Under Rule 5.17, failure to serve allows the Board to adjourn or dismiss.
6. Not reducing the rent in the meantime. The reduction takes effect by law whether or not notice was given (s. 131(2)). Until a variation order issues, charging the old rent risks tenant applications for money collected illegally.

What happens next

The Board may decide an A4 in a written hearing (Rule 5.6 provides for this). If it issues a notice of written hearing, serve it within 20 days; otherwise attend the oral hearing. The order sets the percentage rent reduction, effective from the s. 131 effective date (s. 132(4)). Adjust rents and refund or credit any overpayment accordingly. Any party has 15 days from an order issued on or after July 1, 2026 to request a review (Rule 26.5).

Frequently asked questions

When does a property tax decrease reduce rent in Ontario?

When the municipal property tax for the complex falls by more than 2.49%. The rent reduction is automatic and takes effect on December 31 of the year the tax reduction takes effect.

How is the rent reduction calculated?

The percentage tax decrease is multiplied by 20% for multi-residential class properties and 15% for others. An A4 on Reason 2 asks the Board to use the complex's actual rent revenue instead.

Do small buildings get a Notice of Rent Reduction?

Municipalities must send notices only for complexes with seven or more units. Smaller buildings are still subject to the reduction, and the A4 deadline runs from the tax notice instead.

Official sources

• Form A4 – Application to Vary the Amount of a Rent Reduction (PDF)
• A4 Instructions
• LTB Forms, filing and fees
• Residential Tenancies Act, 2006, ss. 131–132
• O. Reg. 516/06 (General), ss. 41–44
• LTB Rules of Procedure

Last reviewed October 31, 2026. This page is general information, not legal advice for your situation. Always use the current version of the form from the LTB.