Underused Housing Tax

Underused Housing Tax (UHT)

The new Underused Housing Tax (UHT) imposes a 1% annual tax on the value of residential real estate considered to be vacant or underused that is owned on December 31 of each year. The government indicated that the tax would target property owned by non-Canadians; however, the scope of filing requirements extends to many Canadian entities and individuals, including private corporations and trustees of a trust. The first filings and taxes are due on April 30, 2023*

This summary is intended to be a general guide in determining filing obligations and tax exposure. The specific legislation, regulations and CRA administrative policy should be reviewed for a complete and detailed understanding.**

*As April 30, 2023 falls on a Sunday, CRA has confirmed that the return,
payments and elections are made on time if they receive them by May 1, 2023.
**All legislative references refer to the Underused Housing Tax Act unless
otherwise noted. Note that many of the below terms are defined in Section 2 of the UHT Act. Many provisions of the UHT Act provide for modification by future regulation. All reference to “year” in the chart refer to “calendar year,” unless otherwise noted.


  1. Are you subject to the UHT rules?
  2. Are you required to file an annual return?
  3. Are you required to pay the UHT?
  4. Calculate the tax.
  5. File the annual return and pay the tax (if no exemption is met) by April 30.

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