Underused Housing Tax filing deadline

Underused Housing Tax

October 31 filing deadline (extended to April 30, 2024)

The Underused Housing Tax (UHT) Act received Royal Assent retroactive to January 1, 2022.  There will be no penalties or interest assessed for the 2022 UHT returns as long as they are filed and the applicable tax is paid by October 31, 2023 (extended to April 30, 2024).

The UHT assesses a 1% annual tax on the value of vacant and underused residential properties owned, either directly or indirectly, by foreign, non-resident owners.

Residential properties that meet certain exemptions will not be subject to the 1% tax; however, all owners of residential properties, other than excluded owners, must file an annual declaration for each residential property owned at the end of the previous calendar year.

Based on our records, we believe that we have identified our clients to which this filing obligation applies and have contacted or will be contacting you with respect to filing the declaration.  

Generally, Canadian citizens are considered an excluded owner and exempt from both the tax and the obligation to file a declaration.  However, there are specific instances in which a filing obligation may still apply to Canadian citizens.

Do you own residential property through one of the following:

  • As a trustee
  • As an executor
  • Partnership (i.e. farm and/or residential rental)
  • Corporation
  • Bare Trust agreement
  • On title for another individual’s property (i.e. parent on title for child’s residence)
  • As a non-resident of Canada

While the filing of your return is ultimately your obligation, we want to assure you that we are here to provide our assistance should you require it.  

Note that the UHT is a separate tax from the Vacant Home Tax applicable to residential properties located in Toronto for which yellow notices were sent out in 2022.

If you have not been in contact with our office and believe one of the above criteria applies to you, we urge you to contact us to determine if you have a filing obligation.

For more information, visit the Government of Canada’s webpage regarding UHT.