UNDERUSED HOUSING TAX

Does it affect you?

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What is the tax?

The Underused Housing Tax (UHT) is a tax being imposed on non-residents of Canada who own
residential property in Canada. This tax was put into law for January 1, 2022 and will be an annual
requirement.

Who has to file?
You will be required to file UHT – 2900 if you are a non-resident of Canada and you own residential
property in Canada.

If you are a non-resident but you have citizenship in Canada, you are considered an excluded owner and
are not required to file.

When do you have to file?
The filing deadline for UHT form 2900 is the April 30 following the tax year end.
 

How the tax is calculated?
The tax is calculated in the following manner: Greater of 1% of the assessed property value or the most
recent sales price. You can choose to calculate based on the Fair market value of the property if you feel
your property assessment is high.

Consequences of not filing?
If you do not file there will be penalties and interest based on the unpaid tax. The penalty is the greater
of $5,000 or 5% of the tax payable. When you sell the property your property will be reviewed to ensure
it was compliant with all tax filings and the government can seize the proceeds of the sale if you failed to
file the UHT 2900 form each year.

Exemptions to the Tax?
If you meet the above criteria, you will be required to file but there are situations where you will be
exempt from paying the tax:

1. It is the year you purchased or sold the property.
2. It is a newly constructed property, and it is the first year you own it.
3. It is not suitable to live in year-round or seasonally inaccessible.
4. Uninhabitable during the yar due to major renovations or disaster/ hazardous conditions
5. It is the primary place of residence for you, your spouse, or for child attending school
6. It was occupied by an eligible inhabitant for more than 180 days
 

Other Factors
For the first year of filing you may need to apply for a Canadian tax number (TIN). This can be done at a
Service Canada or through our office during the initial filing.