Underused Housing Tax (UHT)

The Underused Housing Tax () is a new annual 1% tax on the ownership of vacant or underused housing in Canada. This new tax took effect January 1, 2022 & returns must be filed by April 30, 2023. While the tax was aimed at non-resident property owners, some Canadian property owners will have to file the UHT, whether they owe taxes or not. And... if you're a farmer with more than one residence on your farmland you could be impacted.

People/corporations fall into three classifications when it comes to the UHT:

  • excluded owners” - owners with no UHT reporting or tax obligation
  • affected owners” - owners required file the UHT return and pay tax
  • affected owners” - owners required to file the UHT return but with no tax payable 

The penalties for failing to file are stiff, $5000 for individuals & $10,000 for corporations.

It is advised that you consult with your tax accountant or lawyer to answer your questions & let you know if you have to fill out 
UHT Form 2900

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