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Underused Housing Tax

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Underused House Tax
The UHT is a 1% tax intended to apply on the value of vacant or underused residential real property owned by non-resident non-Canadians. 

However, many Canadian individuals and other entities are also required to file UHT returns.  Numerous exemptions for the tax itself exist, but significant penalties can apply where the required return is not filed, even if no tax is payable.
The Underused Housing Tax Returns and Election Form was released on January 31, 2023.  A separate form is required for each property owned, in whole or in part, where the owner is not an excluded owner.  VIEW FORM

Further, the property’s assessed value (for property tax purposes) and its most recent sale price must be disclosed regardless of any exemption from the tax.

CRA is still ironing out the exact details and continues to release new technical details on several exemptions.

The penalties for not filing the returns on time are significant!  Affected owners who are individuals are subject to a penalty of $5,000 and affected owners that are corporations are subject to a minimum penalty of $10,000.

The filing deadline for the 2023 tax year has been extend to April 30, 2024. The UHT payable for a calendar year is due by April 30 of the following year.

Who must file a return and pay the tax:


If you are an excluded owner of a residential property in Canada, you have no obligations or liabilities under the Underused Housing Tax Act.

An excluded owner includes, but is not limited to:

• an individual who is a Canadian citizen or permanent resident - unless included in the list of affected owners below
• any person - including an individual who is a Canadian citizen or permanent resident - that owns a residential property as a trustee of a mutual fund trust, real estate investment trust, or specified investment flow-through trust (SIFT) for Canadian income tax purposes
• a Canadian corporation whose shares are listed on a Canadian stock exchange designated for Canadian income tax purposes
• a registered charity for Canadian income tax purposes
• a cooperative housing corporation for Canadian GST/HST purposes
• an Indigenous governing body or a corporation wholly owned by an Indigenous governing body


If you are not an excluded owner we refer to you as an affected owner and you have obligations under the Underused Housing Tax Act for your residential property in Canada.

An affected owner includes, but is not limited to:

• an individual who is not a Canadian citizen or permanent resident
• an individual who is a Canadian citizen or permanent resident and who owns a residential property as a trustee of a trust (other than as a personal representative of a deceased individual)
•any person - including an individual who is a Canadian citizen or permanent resident - that owns a residential property as a partner of a partnership
• a corporation that is incorporated outside Canada
•a Canadian corporation whose shares are not listed on a Canadian stock exchange designated for Canadian income tax purposes
• a Canadian corporation without share capital

**Due to the novel and evolving nature of this tax, minor changes might be made and updated. 
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