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Underused Housing Tax (UHT): Is It Cancelled? Who Must File?

What Is the Underused Housing Tax (UHT)?


The Underused Housing Tax (UHT) is a federal tax introduced by the Government of Canada to discourage the ownership of underused or vacant residential properties. The tax is generally 1% of the property’s value per year and applies mainly to certain owners of Canadian residential real estate.

However, UHT is often misunderstood. Many people believe it applies only to foreign owners or vacant homes — which is not entirely true.


UHT cancelled?

Has UHT Been Cancelled?

Short answer: No, not yet.

  • The federal government (Liberal government) has publicly proposed cancelling UHT in the future

  • This proposal was mentioned in recent federal policy and budget discussions

  • However, the cancellation has NOT yet been passed by Parliament

👉 Until legislation is officially passed, UHT remains legally in effect.



paper of UHT


Do You Still Need to File a UHT Return?


Yes. For now, UHT filing requirements still apply, including for the 2025 tax year, with a filing deadline of April 30, 2026.


⚠️ Important:

  • No tax payable does NOT mean no filing obligation

  • Many owners are penalized simply for not filing the UHT return


Who Is Required to File a UHT Return?


You may be required to file Form if you are:

  • A non-resident or non-citizen owner of Canadian residential property

  • A corporation (Canadian or foreign) owning residential property

  • A trust (including bare trusts or family trusts) holding residential property

  • An owner in a joint ownership structure where one owner is not a Canadian citizen or permanent resident


Even if the property is:

  • Fully occupied

  • Rented out

  • Used by family members

👉 Filing may still be required.


What Are the Penalties?


Failure to file on time may result in:


  • Minimum penalty of $1,000 for individuals

  • Minimum penalty of $2,000 for corporations or trusts


These penalties apply even if no UHT tax is ultimately owed.


UHT penalties

Official Government Reference


For the most up-to-date and authoritative information, please refer to the Government of Canada’s official UHT page:



Professional Advice

Given the complexity of ownership structures and frequent policy changes, we strongly recommend confirming your UHT filing obligations before the deadline.


If you are unsure whether UHT applies to your situation, professional review can help you avoid unnecessary penalties and ensure compliance.



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