October 31, 2023 Ottawa, Ontario Canada Revenue Agency
The Minister of National Revenue announces that owners affected by the Underused Housing Tax (UHT) will have until April 30, 2024, to file their returns for the 2022 calendar year without being charged penalties or interest.
This transitional relief will allow more affected owners to meet their obligations under this new law, which is part of the Government's long-term plan to increase available housing for Canadians. Consequently, the Canada Revenue Agency will waive the application of penalties and interest for any late-filed UHT returns and for any late-paid UHT payable for the 2022 calendar year, provided the return is filed and the UHT is paid by April 30, 2024.
"The Underused Housing Tax is one part of our plan to combat the housing shortage," says the Honourable Marie-Claude Bibeau, Minister of National Revenue. "We understand that many homeowners may not be aware that they are subject to this new law. This is why I want to ensure that every effort has been made to inform homeowners and help them meet their obligations."
The UHT is an annual 1% tax on the ownership of vacant or underused housing in Canada. It is a federal tax that is independent of other provincial and municipal taxes on vacant or underused housing in Canada. It generally applies to foreign national owners of Canadian residential property, but it's important to note that some Canadian individuals (namely those who own residential property as a partner of a partnership or as a trustee of a trust) and some Canadian corporations may also have to file a UHT return, even if they qualify for an exemption from paying the tax. These owners are referred to as "affected owners".
The vast majority of Canadian individuals who own residential property are excluded owners and, therefore, do not have to file a UHT return or pay the tax. It is the duty of the owner of Canadian residential property to determine if they are an affected or excluded owner.
How to determine if you are an "affected owner"
The CRA has published a new online self-assessment tool. This tool helps you to find information you need to determine if you:
- Need to file a return and pay the tax; or
- Need to file the return but not pay the tax because you may qualify for an exemption from paying the UHT; or
- Do not have to file a UHT return or pay the tax because you are an excluded owner.
If you're an affected owner of residential property in Canada, you must file a separate UHT return by April 30, 2024, for each property you owned on December 31 of the 2022 and 2023 calendar years to avoid penalties and interest.
Filing the Underused Housing Tax return
The fastest and easiest way to file your UHT return is through My Account and My Business Account.
If you are not registered for the CRA's online portals, you can file your UHT return electronically, but you will need:
- one of the following valid CRA tax identifier numbers:
- social insurance number
- individual tax number
- business number, and
- A digital access code
You can also file your return by mail or fax. Visit our File the return
