How to complete the return and calculate the tax - Underused Housing Tax (UHT)

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If you are an affected owner of a residential property in Canada on December 31, you must file an Underused Housing Tax (UHT) return for the calendar year.

If you are an affected owner of more than one residential property, you must file a separate return for each of those properties.

If you are one of several affected owners of the residential property, each of you must file a separate return for the property.

Determine if you are an affected owner

What form to use


Follow the steps below to help you fill out the parts of your return relevant to your situation.

  1. Part 1 - Information about the owner

    You must have a valid CRA tax identifier number to file your return.

    Tax identifier numbers

    The following tax identifier numbers may be used depending on the situation:

    • Social insurance number (SIN)
    • Individual tax number (ITN)
    • Temporary taxation number (TTN)
    • Canadian business number (BN) with an Underused Housing Tax (RU) program account identifier code

    A trust account number (TAN) cannot be used to file Underused Housing Tax returns.

    Tax identifier numbers for individuals

    Depending on your citizenship, if you are an individual, you must file your return using either a SIN, an ITN, or a TTN.

    Canadian citizens or permanent residents

    You must use your SIN to file your return.

    If you do not already have a SIN, you must apply for one.

    Apply for a SIN


    Foreign nationals

    If you already have a SIN, you must use it to file your return.

    If you do not have a SIN, you must use your ITN or TTN to file your return.

    Foreign nationals (use an ITN)

    • If you are a temporary resident and have previously been assigned a TTN, please use this number to file your return.
    • If you are not a temporary resident or have not been assigned a TTN, you should use an ITN.

    If you do not have an ITN, you must apply for one.

    Apply for an ITN

    If you do not have a valid ITN, and are concerned with meeting the filing deadline, you may be able to apply for one by completing the application form (Form T1261) and mailing it with your paper return.

    You will not be able to complete an electronic return without a valid ITN.

    Make sure to file your ITN application form, all supporting documentation required for the ITN application, and your Underused Housing Tax return together.

    Tax identifier numbers for corporations

    If you are a corporation, you must file your return using a BN with an RU program account identifier code.

    If you already have a BN, you will have to register your RU program account before you can file your return.

    If you do not have a BN, you must get one and register your RU program account before you can file your return.

    If you are filing multiple returns, you only need to register for one RU program account to file all your UHT returns for the calendar year. You do not need separate RU program account identifier codes.

    Canadian corporations

    Refer to Business Registration Online to:

    • Get a business number (BN)
    • Get an Underused Housing Tax (RU) program account identifier code

    If your corporation is in Quebec

    Refer to: Businesses operating in Quebec

    Corporations outside of Canada

    If you need to get a business number (BN), register through:

    Non-resident business number

    If you need to get an Underused Housing Tax (RU) program account identifier code, register through:

    Non-resident Underused Housing Tax registration form

    If you are a non-resident corporation and you have a question about obtaining a BN or registering your RU program account, the physical location of your business outside Canada will determine the telephone number that you must use to call the CRA.

    To determine which phone number is applicable to you, refer to:

    Non-resident enquiries

  2. Part 2 - Information about your residential property in Canada

    You must determine your ownership percentage, as well as the value of the residential property.

    Determine your ownership percentage

    If you are the only owner of the residential property, your ownership percentage is 100%.

    If you are one of several owners of the residential property, your ownership percentage is either of the following:

    • The percentage of your ownership as indicated in the land registration system
    • 100% divided by the number of owners, if no percentage is indicated in the land registration system

    Determine the value of the residential property

    There are 2 ways to determine the value of a residential property.

    The general rule is to use its taxable value.

    What is taxable value

    The taxable value of the residential property for a calendar year is the greater of the following amounts:

    • The value of the residential property established by an authority that has the power to establish the assessed value of property for purposes of calculating a property tax
    • The residential property's most recent sale price, on or before December 31 of the calendar year

    Review tax notice: UHTN2, Calculating the tax payable using the taxable value


    If you want to use the residential property's fair market value to make your calculation, you must file a Fair market value (FMV) election.


    How to calculate the tax payable

  3. Part 3 - Multiple residential properties

    This part only applies to affected owners who are individuals, and who are not Canadian citizens or permanent residents of Canada.

    Section 1 – Multiple properties

    If you own more than one residential property in Canada on December 31, you must file a separate return for each property.

    Section 2 – Election to designate a residential property

    Complete this section if you answered yes for line 300, and no for line 310.

    Line 315: By answering yes, you are designating the residential property (described in Part 2) for purposes of the exemptions for primary place of residence (Part 4) and qualifying occupancy (Part 5).

    This means you are declaring:

    • Only the residential property can be considered as qualifying for the exemption for primary place of residence
    • For only the residential property can your personal occupancy of a dwelling unit (or the personal occupancy of your spouse or common-law partner) be considered as usable for the exemption for qualifying occupancy


    You must fill out this section to be eligible for one of these 2 exemptions.

    Section 3 – Joint election to designate a residential property

    Complete this section if you answered yes for line 310.

    Line 320: By answering yes, you are designating the residential property (described in Part 2) for purposes of the exemptions for primary place of residence (Part 4) and qualifying occupancy (Part 5).

    This means you are declaring:

    • Only the residential property can be considered as qualifying for the exemption for primary place of residence
    • For only the residential property can your personal occupancy of a dwelling unit (or the personal occupancy of your spouse or common-law partner) be considered as usable for the exemption for qualifying occupancy


    You must fill out this section to be eligible for one of these 2 exemptions.

    To constitute a valid joint election, your spouse or common-law partner must elect to designate the same residential property for the calendar year in an UHT return for a residential property they own.

    The election is incomplete until the CRA receives your spouse or common-law partner's portion of the election on their UHT return designating the same residential property.


    If you choose to make an election, you may only designate one residential property.

    You cannot elect to designate different residential properties to claim multiple exemptions based on your, or your spouse's or common-law partner's, personal occupancy of the properties.

    Review tax notice: UHTN8, Special Rule and Elections for Individual Owners of Multiple Residential Properties

  4. Part 4 - Exemption for primary place of residence

    Only owners who are individuals may qualify for this exemption.

    If you own multiple residential properties, or if you and your spouse or common-law partner (who is not a Canadian citizen or permanent resident) are owners of multiple residential properties, you must fill out the election in Part 3 to claim this exemption.

    Primary place of residence

    Review tax notice: UHTN6, Exemption for residential properties that are used a primary place of residence

  5. Part 5 - Exemption for qualifying occupancy

    If you are an individual who owns multiple residential properties, or if you and your spouse or common-law partner (who is not a Canadian citizen or permanent resident) are owners of multiple residential properties, you must fill out the election in Part 3 for your personal occupancy to be included in a qualifying occupancy period.

    Qualifying occupancy

    Review tax notice: UHTN7, Exemption for residential properties that are used for qualifying occupancy

  6. Part 6 - Other exemptions

    Complete this part if you are claiming an exemption other than the exemption for primary place of residence or qualifying occupancy.

    You may only select one exemption.

    Exemption eligibility for affected owners

  7. Part 7 - Fair market value (FMV) election

    If you have claimed an exemption in Parts 4, 5 or 6, you do not need to fill out Part 7.

    If you choose to make a FMV election for a particular residential property, you are electing to use the FMV of your property instead of its taxable value to calculate your tax payable for the calendar year.

    Fair market value (FMV)

    To calculate the tax you owe using the fair market value of a residential property, you must file an election by completing this section.

    An owner electing to use fair market value for the calculation has to get a written appraisal of the property. The written appraisal must be determined by an accredited, professional, real estate appraiser operating at arm’s length to the owner. The intended use of the written appraisal must be to help in the administration of the Underused Housing Tax Act.

    Acceptable Professional Associations and Designations

    • Appraisal Institute of Canada (AIC)
      • Accredited Appraiser Canadian Institute (AACI)
      • Canadian Residential Appraiser (CRA)
    • Canadian National Association of Real Estate Appraisers
      • Designated Appraiser Residential (DAR)
      • Designated Appraiser Commercial (DAC)
    • Ordre des évaluateurs agréés du Québec (OEAQ)
      • Chartered Appraiser (C.App./É.A.)

    If you have an appraisal report from an appraiser that does not have a designation from one of these associations and need further clarification, please contact the CRA.


    Review tax notice: UHTN2, Calculating the tax payable using the FMV

  8. Part 8 - Calculation of tax payable

    If you have claimed an exemption in Parts 4, 5 or 6, you do not need to fill out Part 8.

    If your ownership of a residential property does not qualify for an exemption from paying the tax for a calendar year, you must calculate what you owe.

    The Underused Housing Tax rate is 1%.

    To calculate what you owe, multiply the value of the residential property by the tax rate. Then multiply that result by your ownership percentage of the property.

    • Value of the property
    • times Underused Housing Tax rate (1%)
    • times Your ownership percentage
    • equals Underused Housing Tax amount owed

    Calculation example

    For the 2023 calendar year, the value of the residential property is $500,000.

    You are 1 of 2 owners, each indicated in the land registration system as holding 50% ownership in the property.

    • $500,000 (Value of the property)
    • × times 1% (Underused Housing Tax rate)
    • × times 50% (Your ownership percentage)
    • = equals $2,500 (Underused Housing Tax amount owed for the 2023 calendar year)

    Review tax notice: UHTN2, Calculating tax payable






Keep your records

You must keep records to support the information you provide in your return. If you claim an exemption but do not have adequate records to support it, we may disallow it.

Generally, you must keep your records for 6 years from the end of the year they relate to. Your records must be kept in Canada, in English or French, unless otherwise authorized by the Minister.

We cannot provide a defined list of records that you can use to support an exemption because each person’s situation is unique.

Examples of records to keep

Examples of records to support the information you provide in your return could include, but are not limited to the following:

  • Municipal property tax assessment notice
  • Purchase and sales agreements
  • Land registration records
  • Partnership or trust agreements
  • Articles of incorporation or share registries
  • Invoices, receipts, or statements
  • Formal contracts or agreements
  • Diaries, journals, letters, or images
  • Bank or credit card statements
  • Deposit slips
  • Cheques
  • Contracts
  • Logbooks
  • Written appraisal report
  • General correspondence whether written, or in any other form



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Date modified:
2023-10-04