Quick facts about the new Underused Housing Tax

by | Apr 1, 2024 | Finance and Business

You may or may not have heard that there’s an Underused Housing Tax (UHT) in Canada. Is it what you think it is? Does it apply to you? Here are few quick facts you should know.

  1. It’s not the vacancy tax you’ve heard about
    You may have heard of vacancy taxes in some provinces and municipalities, but those taxes are not the same as the UHT, which is a federal tax that took effect in January 2022. Someone who must pay a regional vacancy tax may or may not be affected by the UHT and vice versa. If you are exempt from one tax, you may still be required to file a return and pay the other tax.
  2. If you own residential property, you could be affected
    The UHT usually affects foreign nationals, meaning those who are not Canadian citizens or permanent residents, who own residential property here in Canada, or foreign corporations. But, in some situations, this tax also applies to Canadian individuals and corporations.
  3. If you’re affected, you have to file – maybe multiple returns – even if you’re exempt
    If you’re an affected owner, you may be exempt from paying the tax for a year depending on things like the location of the property and the type of occupant; however, you’re still required to file a return to claim your exemption. If you own more than one residential property, you must file a separate return for each property. If you’re one of several affected owners of a property, each owner must file a separate return.
  4. It’s due at the same time as income taxes but it’s not the same return
    The Canada Revenue Agency must receive 2022 and 2023 UHT returns and any payments owed by April 30, 2024, to avoid penalties and interest. Note that even though this is the same date the income tax and benefit return is due for most people, the UHT is a separate return.

To find out if you’re affected for the 2022 tax year, you can use the CRA’s online self-assessment tool at canada.ca/cra-uht. The 2023 tax year rules may be different.

Related Content

How newcomers can find meaningful careers in Canada

How newcomers can find meaningful careers in Canada

If you’ve recently moved to Canada and are frustrated by a tough job market, you’re not alone. Many newcomers struggle to find similar positions to those they held back home and take on survival gigs to support their families. Fortunately, there are many things you...

read more
Budget like a pro this summer

Budget like a pro this summer

As Canadians navigate the current financial environment, they are seeking ways to reduce their expenses. According to a recent Belairdirect survey, close to half (41 per cent) of Canadians think of themselves as financially savvy, with more than a third sharing their...

read more
How to help make your money grow

How to help make your money grow

In today’s complicated financial environment, every dollar counts for Canadians. Many may miss the opportunity to maximize their money. The question is: how should Canadians allocate their funds? Should they put it towards personal spending, savings or high-interest...

read more
Top tips to save on your car and home insurance

Top tips to save on your car and home insurance

Insurance is meant to provide peace of mind when you need it most. Yet, the monthly expense of car and home insurance remains a stressor for many Canadians. If you’re looking for a way to lower your insurance rates, you’re not alone. Start by exploring all your...

read more
The best times to shop around for deals

The best times to shop around for deals

When you’re in the market for a new or used car you don’t buy the first one you see. It’s important to shop around and do your research to find the best deal. But what is the best time of year to do so? Here are the top three times of year to get the best bang for...

read more