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Determine if you qualify for an exemption from paying the tax

If you are an affected owner you must file a return, even if you qualify for an exemption from paying the Underused Housing Tax (UHT).

If your ownership qualifies for an exemption for a calendar year, you must indicate the exemption in Parts 4-6 of your Underused Housing Tax return.

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2023 and onward calendar years exemptions

You may be exempt from paying the Underused Housing Tax for the 2023 and onward calendar years depending on your situation.

Type of owner

You may be exempt from paying the tax if you are a:

  • New owner in the calendar year
  • Deceased owner, or a co-owner or personal representative of a deceased owner

Review tax notices:

Occupant of the residential property

You may be exempt from paying the tax if the property is:

  • Used as a primary place of residence

  • Used for qualifying occupancy

Primary place of residence

Only affected owners who are individuals qualify for this exemption.

To qualify for this exemption, a dwelling unit that is part of the residential property must be the primary place of residence of any of the following for the calendar year:

  • You or your spouse or common-law partner
  • Your child, or your spouse's or common-law partner's child, who occupies the residential property while pursuing authorized study at a designated learning institution

Review tax notice: UHTN6, Exemption for residential properties that are used as a primary place of residence

Qualifying occupancy

To qualify for this exemption, a dwelling unit that is part of the residential property must be occupied by a qualifying occupant for one or more qualifying occupancy periods totalling at least 180 days in the calendar year.

Review tax notice: UHTN7, Exemption for residential properties that are used for qualifying occupancy

Availability of the residential property

You may be exempt from paying the tax if the property is:

  • Newly constructed
  • Not suitable to be lived in year-round, or seasonally inaccessible
  • Uninhabitable for a certain number of days because of a disaster or hazardous conditions, or a renovation

Review tax notices:

Location and use of the residential property

Only affected owners who are individuals qualify for this exemption.

You may be exempt from paying the tax if the property is:

  • A vacation property located in an eligible area of Canada and used by you or your spouse or common-law partner for at least 28 days in the calendar year

Starting with the 2024 calendar year, you must also meet the following additional conditions to qualify for this exemption:

  • you indicate in your annual UHT return for the residential property for the calendar year that no UHT is payable for the residential property on account of the exemption for vacation properties
  • neither you nor your spouse or common-law partner indicate in any other annual UHT return for any other residential property for the calendar year that no UHT is payable for the other residential property (or residential properties) on account of the exemption for vacation properties

Determine if your residential property is located in an eligible area of Canada for the purposes of this exemption by using the Underused housing tax vacation property designation tool.

Review tax notices:

New exemption for employee accommodations

Starting with the 2023 calendar year, you may be exempt from paying the tax if all of the following conditions are met:

  • The residential property is located in an eligible area of Canada
  • You, or another person that is related to you (either referred to as the operator), carry on business in Canada
  • The residential property is held during the calendar year to provide a place of residence or lodging to an individual at a location where they are required to perform their duties

Determine if your residential property is located in an eligible area of Canada for the purposes of this exemption by using the Underused housing tax vacation property designation tool.

It is important for you to make this determination each year before claiming this exemption.

Determine if an individual’s duties qualify

To qualify for this exemption, the individual who you are holding a place of residence or lodging for, must be performing duties as any of the following:

  • An officer (being a person holding an office) or an employee of the operator
  • A contractor, or an employee of the contractor, engaged by the operator to render services at that location to the operator
  • A subcontractor, or an employee of the subcontractor, engaged by a contractor referred to in the preceding bullet to render services at that location that are acquired by the contractor for the purpose of supplying services to the operator

Review tax notice: UHTN16, New exemption for employee accommodations

2022 calendar year exemptions

You may be exempt from paying the Underused Housing Tax for the 2022 calendar year depending on your situation.

Type of owner

You may be exempt from paying the tax if you are a:

  • Specified Canadian corporation
  • Partner of a specified Canadian partnership, or a trustee of a specified Canadian trust
  • New owner in the calendar year
  • Deceased owner, or a co-owner or personal representative of a deceased owner

Review tax notices:

Occupant of the residential property

You may be exempt from paying the tax if the property is:

  • Used as a primary place of residence

  • Used for qualifying occupancy

Primary place of residence

Only affected owners who are individuals qualify for this exemption.

To qualify for this exemption, a dwelling unit that is part of the residential property must be the primary place of residence of any of the following for the calendar year:

  • You or your spouse or common-law partner
  • Your child, or your spouse's or common-law partner's child, who occupies the residential property while pursuing authorized study at a designated learning institution

Review tax notice: UHTN6, Exemption for residential properties that are used as a primary place of residence

Qualifying occupancy

To qualify for this exemption, a dwelling unit that is part of the residential property must be occupied by a qualifying occupant for one or more qualifying occupancy periods totalling at least 180 days in the calendar year.

Review tax notice: UHTN7, Exemption for residential properties that are used for qualifying occupancy

Availability of the residential property

You may be exempt from paying the tax if the property is:

  • Newly constructed
  • Not suitable to be lived in year-round, or seasonally inaccessible
  • Uninhabitable for a certain number of days because of a disaster or hazardous conditions, or a renovation

Review tax notices:

Location and use of the residential property

Only affected owners who are individuals qualify for this exemption.

You may be exempt from paying the tax if the property is:

  • A vacation property located in an eligible area of Canada and used by you or your spouse or common-law partner for at least 28 days in the calendar year

Determine if your residential property is located in an eligible area of Canada for the purposes of this exemption by using the Underused housing tax vacation property designation tool.

Review tax notices:

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2025-12-23

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