The federal government has proposed changes to the legislation related to the Underused Housing Tax (UHT).
The federal government has proposed several changes to the UHT legislation that could impact the obligations of owners of residential property in Canada. Draft legislative and regulatory proposals relating to these proposed changes were released for public consultation in the draft legislation section of the Department of Finance website.
Following a consultation period, the government intends to bring forward legislation for consideration by Parliament.
You must file an Underused Housing Tax return for each of your properties in Canada for which all of the following conditions are met on December 31:
The property is a residential property
You are an owner of the residential property
You are determined to be an affected owner of the residential property
Generally, residential property is defined as property that is either:
A detached house or similar building that contains a maximum of 3 dwelling units, including the related land
A semi-detached house, rowhouse unit, or condominium, including the related land
Review tax notice: UHTN1, Residential property
You are an owner of residential property if you are:
Review tax notice: UHTN1, Owner of residential property
As an affected owner, you must file an annual return.
If you are an affected owner of more than one residential property in Canada, you must file a separate return for each property.
If you are one of several affected owners of the residential property, each of you must file a separate return for the property.
Determine if you are an affected owner
You may qualify for an exemption from paying the tax. To claim it, you must select the exemption on your return.
If your ownership qualifies for an exemption, you do not have to pay the tax.
If your ownership does not qualify for an exemption, you must pay the tax.
If you are an excluded owner you do not have to:
Find out which type of owner you are based on your situation, and the types of exemptions from paying the tax that might be available.
This tool does not reflect the proposed changes to the UHT legislation.
If the interactive questions does not appear, use the long form text.
You have no obligations under the Underused Housing Tax Act.
You do not have to file a return or pay the tax unless your situation changes by December 31 of the calendar year.
Review tax notice: UHTN1, Excluded owners
If you are uncertain about your obligations under the Underused Housing Tax Act, you may contact us or request a ruling or interpretation about how the tax applies to your specific situation.
Indicate your exemption in Parts 4-6 of your Underused Housing Tax return.
Review tax notices:
Review tax notices:
You must pay the Underused Housing Tax.
Use this version if you do not want to answer interactive questions.
There are 2 types of owners for the purposes of the Underused Housing Tax:
You must file a return for each residential property that you own as an affected owner on December 31.
You will also have to pay the tax unless you qualify for an exemption.
If you are an affected owner of more than one residential property in Canada, you must file a separate return for each property.
If you are one of several affected owners of the residential property, each of you must file a separate return for the property.
An affected owner includes, but is not limited to, the following owners of a residential property in Canada:
Review tax notice: UHTN1, Affected owners
If you are an excluded owner, you have no obligations under the Underused Housing Tax Act.
You do not have to file a return or pay the tax.
An excluded owner includes, but is not limited to:
Review tax notice: UHTN1, Excluded owners
If you are an affected owner on December 31 you must file an Underused Housing Tax return for the calendar year, even if you qualify for an exemption.
You may be exempt from paying the Underused Housing Tax for a calendar year depending on the:
The affected owner may be exempt from paying the tax if they are any of the following:
Review tax notices:
UHTN4, Exemptions for specified Canadian partnerships, trusts and corporations
UHTN11, Exemption for new owners
UHTN12, Exemptions for deceased individuals and their personal representatives or co-owners
You may be exempt from paying the tax if the property is:
Used as a primary place of residence
Used for qualifying occupancy
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:
Review tax notice: UHTN6, Exemption for residential properties that are used as a primary place of residence
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 notices:
UHTN7, Qualifying occupancy period
UHTN7, Exemption for residential properties that are used for qualifying occupancy
You may be exempt from paying the tax if the property is any of the following:
Review tax notices:
UHTN13, Exemption for new residential properties
UHTN9, Exemptions for residential properties that cannot be used year-round
Only affected owners who are individuals qualify for this exemption.
You may be exempt from paying the tax if the property is:
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:
UHTN5, Exemption for vacation properties
UHTN15, Questions that relate to UHTN5, Exemption for Vacation Properties
UHTN14, Exemption for vacation properties (Manual place-search instructions)
The results that are obtained after you complete the interactive tool are not binding on the CRA.
The results are dependent on the accuracy of the information that is entered.
If you are uncertain about your obligations and liabilities under the Underused Housing Tax Act, you may contact us or request a ruling or interpretation about how the tax applies to your specific situation.
