Key facts to know:

• The Underused Housing Tax (UHT) is an annual 1% tax on the property value of vacant or underused residential property in Canada.

• 2022 is the first UHT tax base year, and the filing due date is

  April 30, 2023.

• If you don’t file on time, heavy penalty will apply $5,000 minimum for individuals, and $10,000 minimum for other entities.

Filing does not always mean paying tax. Even if you must file the UHT tax return, you can be exempt from paying UHT tax if some conditions are met. Some common exemption conditions include, but are not limited to:

1. Property is used, for the year, as primary place of residence for yourself, your spouse or common-law partner, or your child attending a designated learning institution.

2. Property is occupied by an arm’s length individual under a written agreement, for at least 180 days in the year (during which the minimum duration is one-month).

A lot more conditions can qualify you for the exemptions.

When you think you may fall into any of the filing requirements for UHT, don’t hesitate to reach us for assistance. We may help you assess whether filing and/or tax payment obligations apply to your specific situation.

For additional information on UHT please refer to the CRA website:

https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html