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ARTICLE · 10 FEBRUARY 2023

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What Is The Underused Housing Tax?

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The underused housing tax (UHT) is a Federal tax applied to vacant or underused housing in Canada, effective January 1, 2022. Generally speaking...

CanadaTax
Crowe MacKay LLP
Crowe MacKay LLP
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The underused housing tax (UHT) is a Federal tax applied to vacant or underused housing in Canada, effective January 1, 2022. Generally speaking, this tax targets foreign property owners, but certain Canadian owners may be impacted, see the examples below.

There are significant penalties for affected owners who do file an annual return, with a minimum penalty of $5,000 for individuals who are affected owners, and $10,000 for owners other than individuals.

Who Has to File a Return?

A Form UHT-2900 (Underused Housing Tax Return and Election Form) needs to be filed for each of your properties when all of the following conditions are met on December 31 of a calendar year:

  • The property is a residential property

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