Federal Underused Housing Tax

What real estate owners need to know

The Federal Underused Housing Tax (“UHT”) is an annual 1 per cent tax on the ownership of vacant or underused residential property in Canada. The law took effect on January 1st, 2022, and while the UHT is intended to be targeted towards non-Canadians who hold residential real estate property in Canada that is vacant, many Canadians will still have an obligation to file a UHT tax return (the “UHT Return”). Significant penalties will apply if the UHT Return is not filed on time, even where no tax is due.

For the purposes of the UHT, residential real estate properties include, but are not limited to, detached houses, semi-detached houses, condominium units, townhouses, duplexes/triplexes, and cottages or cabins.

Download the complete UHT Infographic here.

UHT at a Glance

Underused Housing Tax

The UHT Return

Underused Housing Tax

UHT Exceptions and Exemptions

Underused Housing Tax

Provincial and municipal jurisdictions in Canada may also impose taxes on non-residents and foreign ownership of residential real estate property (such as British Columbia’s provincial Speculation and Vacancy tax, Toronto’s municipal Vacant Home Tax, etc.). These are separate from the Federal UHT and can apply on top of the UHT.

It is important for purchasers and owners of Canadian real estate to be wary of these rules, as penalties and fines could be applicable for non-compliant taxpayers. Contact your Crowe Soberman advisor to see how the UHT may impact you.

Download the complete UHT Infographic here.

This infographic has been prepared for the general information of our clients. Please note that this publication should not be considered a substitute for personalized advice related to your situation.

UHT Informational Video

Learn more about UHT and why it matters to you.