Underused Housing Tax
The Underused Housing Tax (UHT) is an annual federal 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022.
The UHT generally applies to foreign national owners of housing in Canada. However, in some situations, the UHT also applies to some Canadian owners (such as certain partners, trustees, and corporations).
Provincial and municipal vacancy taxes
You may have heard about a new vacancy tax in certain provinces and municipalities in Canada. These vacancy taxes have been implemented by provincial and municipal governments and are different than the federal Underused Housing Tax.
You must determine if you are affected by each of these taxes separately. If you are exempt from one tax, you may still be required to file a return and pay the other tax.
The CRA is not able to answer questions about taxes implemented by provincial and municipal governments.
Determine if you are an affected owner for the Underused Housing Tax