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What is the Underused Housing Tax?

The new federal Underused Housing Tax (UHT) is an annual 1% tax on the ownership of vacant or underused housing in Canada. It came into effect on January 1, 2022. Those affected, must file a UHT return for 2022 and subsequent years if they owned underused housing on December 31 of that respective year.

Do you need to file the UHT return?

Even if you’re exempt from a provincial or municipal vacancy tax, you may still be required to file a UHT return and pay the UHT. The UHT applies to owners of residential properties in Canada, such as foreign nationals, foreign corporations and certain Canadians.

If you own a residential property in Canada, find out if you need to file a return and pay the UHT, or if you may qualify for an exemption, using the Canada Revenue Agency’s online self-assessment tool.

How do you file the return?

If you’re required to file a return for the 2022 or 2023 calendar year, make sure the Canada Revenue Agency receives your return(s) and any payment(s) for 2022 and 2023 by April 30th, 2024, to avoid penalties and interest.

If you are an affected owner of multiple residential properties in Canada, you must file a separate UHT return for each property. If you are one of several affected owners of the same property, each of you must file a separate return.

For the quickest and most efficient way to file, use the Online form for the Underused Housing Tax return

Learn more about the UHT and how to file your return at:

canada.ca/cra-uht