Underused Housing Tax (UHT)

The UHT is a federal 1% annual tax (as of 2026-07-27 — verify current) on the value of vacant or underused residential property in Canada, imposed under the Underused Housing Tax Act (SC 2022, c. 10, s. 86), targeting non-resident non-Canadians and certain entities like some corporations and trustees. Bill C-15 received Royal Assent on March 26, 2026, eliminating the UHT for the 2025 tax year and onward; no return is required and no tax is payable for 2025 or later years (as of 2026-07-27 — verify current). However, filing obligations and tax liability for the 2022, 2023, and 2024 tax years remain fully enforceable, with penalties and interest for non-compliance. Verify historical UHT obligations with a Canadian tax professional.

Yes. Even though the UHT was eliminated for 2025 and later (as of 2026-07-27 — verify current), owners who were subject to the Underused Housing Tax Act for the 2022, 2023, or 2024 calendar years must still file their UHT returns and pay any tax owing for those years. Failure to file carries penalties and interest under federal law. Verify your specific filing obligations and deadlines with a Canadian tax professional or the Canada Revenue Agency.

No. The UHT is a federal tax under the Underused Housing Tax Act (SC 2022, c. 10, s. 86), while the Speculation and Vacancy Tax is a separate provincial tax under the Speculation and Vacancy Tax Act, SBC 2018, c. 46. Both may have applied to the same property in overlapping years (2022–2024 for UHT; ongoing for the provincial tax as of 2026-07-27 — verify current), but they have different eligibility rules, exemptions, rates, and filing requirements. Verify your obligations under each statute with a BC lawyer, notary, or licensed tax professional.

The UHT rate was 1% annually (as of 2026-07-27 — verify current) of the property's taxable value, applied to each calendar year the property was underused and owned by an affected owner under the Underused Housing Tax Act (SC 2022, c. 10, s. 86). This rate applied for the 2022, 2023, and 2024 tax years; the tax was eliminated for 2025 and later years by Bill C-15 (Royal Assent March 26, 2026, as of 2026-07-27 — verify current). Verify the taxable value calculation and any exemptions with a Canadian tax professional.

Under the Underused Housing Tax Act (SC 2022, c. 10, s. 86), affected owners included non-resident non-Canadians (individuals who are neither citizens nor permanent residents and not tax residents of Canada), as well as certain corporations, partnerships, and trustees that owned residential property in Canada. Excluded owners (such as Canadian citizens, permanent residents, certain trusts, and qualifying Canadian corporations) were generally exempt but may still have had filing obligations. For 2022–2024 tax years only (as of 2026-07-27 — verify current), verify your specific status and obligations with a Canadian tax professional.

Failure to file a UHT return by the deadline (typically April 30 of the year following the calendar year, as of 2026-07-27 — verify current) results in penalties and interest under the Underused Housing Tax Act (SC 2022, c. 10, s. 86) and administered by the Canada Revenue Agency. Even though the UHT was eliminated for 2025 and later, enforcement for 2022, 2023, and 2024 remains active. File any outstanding returns immediately and verify penalty relief options with a Canadian tax professional or the CRA.

Under the Underused Housing Tax Act (SC 2022, c. 10, s. 86), certain exemptions were available for properties occupied by qualifying occupants (including arm's-length tenants under written leases of 30 days or more in each month, as of 2026-07-27 — verify current) for at least 180 days in the calendar year (as of 2026-07-27 — verify current). Exemption eligibility depended on owner type, occupancy patterns, and filing a complete UHT return with supporting documentation. Verify your eligibility for any exemption for the 2022, 2023, or 2024 tax years with a Canadian tax professional.

Bill C-15 (Royal Assent March 26, 2026, as of 2026-07-27 — verify current) eliminated the UHT for 2025 and later years, but the Underused Housing Tax Act (SC 2022, c. 10, s. 86) remains on the books in dormant form until statutory repeal effective January 1, 2035 (as of 2026-07-27 — verify current). Until then, enforcement for 2022–2024 tax years continues. Verify the current legislative status and any amendments with a Canadian tax professional or at laws-lois.justice.gc.ca.

The elimination of the federal UHT for 2025 and later years (as of 2026-07-27 — verify current) does not affect BC's provincial Property Transfer Tax under the Property Transfer Tax Act (RSBC 1996, c. 378), BC's Speculation and Vacancy Tax under the Speculation and Vacancy Tax Act (SBC 2018, c. 46), municipal property taxes, or any other provincial or local levies. Each tax has independent eligibility, rates, exemptions, and filing requirements. Verify your total tax obligations for any BC property transaction or ownership with a BC lawyer, notary, or licensed tax professional.

Contact the Canada Revenue Agency (CRA) directly via the UHT line (verify current contact details at canada.ca/underused-housing-tax, as of 2026-07-27 — verify current) or consult a Canadian tax professional experienced in the Underused Housing Tax Act (SC 2022, c. 10, s. 86). The CRA administers UHT compliance, including late filings, penalty assessments, and voluntary disclosure relief. Do not rely on BC real estate licensees or non-tax professionals for federal tax advice; verify all filing obligations and deadlines with qualified advisors.