Canada introduced the Underused Housing Tax (UHT) in 2022, an annual federal 1% tax on the ownership of vacant or underused housing in Canada. This tax generally applies to foreign national owners of housing in Canada. However, in some situations, this tax also applies to some Canadian owners.
If you held a residential property in 2022 through a partnership, trust or corporation, you will most likely have to file the Federal Underused Housing Tax form UHT-2900, due by April 30, 2024 if you have not already filed. There are substantial penalties for not filing the form, even when you meet the tax exemption criteria.
For 2023 and subsequent years, only non-resident owned or controlled residential properties will be caught by and will require this reporting.
Please use the interactive CRA tool linked below to determine if you are required to file or pay the Underused Housing Tax.
CRA Underused Housing Tax eligibility tool
If you determine that you are an affected owner and not excluded from paying the tax, residential property owners have until April 30, 2024 to file and pay the 2022 and 2023 returns without being charged penalties or interest.
We can prepare and file this return if you need assistance. Please use the form below for the required information and documents.