Underused Housing Tax（UHT）

Underused Housing Tax is a policy introduced by Canada to solve the housing shortage problem, encouraging homeowners to put vacant houses on the market. Multiple municipal governments and the Canadian federal government have developed different vacant home tax policies based on their own circumstances. Both may trigger the reporting requirements simultaneously. Please carefully review the relevant reporting requirements based on your property address.

Scope of application: Covers residential properties across the country, mainly for non-Canadian residents or non-permanent residents. If you are on a work permit or a study permit, you need to declare whether your house is vacant or not!

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

Tax rate: If it is vacant, 1% of the assessed value of the house will be paid

Tax exemption conditions: Houses used for long-term rental (accumulated for more than 180 days), meet self-occupancy conditions or meet other federal exemption standards are not subject to vacancy tax.

Pay advance tax: Even if the vacancy tax is exempted, non-resident homeowners still need to complete the declaration and submit the advance tax on the rental income of the house.

Declaration deadline: April 30th of each year. Unlike the Toronto Vacancy Tax, the federal tax only requires eligible homeowners to declare. Failure to file on time may result in a fine of $1,000 to $2,000 or tax penalties.

This declaration is based on each person, so the quote is based on each owner. If your property has two owners, you need to add two orders.