Underused Housing Tax (UHT)

• The rule implements an annual 1% tax on the value of vacant and underused residential properties owned by non-permanent residents or non-Canadian citizens
  • Non-resident status is based on immigration status, NOT tax residency status
• UHT is exempt if the property is occupied by the non-resident owner or the family member, or rented to a long term tenant for at least six months of the year. 
• Other exemptions include uninhabitable property, ongoing renovations, acquisition of interest, and newly constructed property.
• UHT Tax (if applicable) is due by April 30th of the following year.

​

• Expanded requirement to file an UHT return (Form UHT-2900) annually, for each property,  when the property is owned by a Canadian private corporation, partnership or a trust, even if there is no foreign ownership or foreign beneficiaries.
• Definition of a residential property include but not limited to detached homes, semi-detached homes, town houses, and condos.
  • Note that a building containing more than 3 dwelling units will not meet the definition of a residential property. In other words, if the building has more than 3 dwelling units, it would NOT trigger a UHT filing obligation for the owner.
• UHT-2900 filing is due by April 30th of the following year.
• Failure to file a UHT return by April 30 of the following year, when required, could result in a penalty of at least $5,000 for individuals and $10,000 for Canadian corporations, partnerships, and trusts.

​