UHT (Underused Housing Tax)

Federal Vacant Housing Tax

The Underused Housing Tax (UHT) is a federal tax primarily targeting non-Canadian residents and corporations that own vacant or underused residential properties in Canada.
The UHT rate is 1% of the property’s value, and it came into effect on January 1, 2022.

How UHT Is Calculated

The property value is determined as the greater of either:

• The government-assessed property value, or

• The most recent sale price of the property.

The tax rate is 1% of this value.

Property owners may also apply to use the fair market value of the property, as of a date between January 1 of the calendar year and April 30 of the following year, to determine the tax base.

Who Must File a UHT Return

The properties subject to UHT are residential properties, including:

• Detached houses

• Semi-detached houses

• Townhouses

• Condominium units

• Apartment buildings with fewer than three units (triplexes)

You are required to file a UHT return if you are:

• Not a Canadian citizen or permanent resident, or

• A private corporation, including Canadian-controlled private corporations (CCPCs),

• A partnership, or

• A trust.

Exemptions: When You Must File but Don’t Have to Pay the Tax

You still need to file, but you may be exempt from paying UHT if you meet any of the following conditions:

1. Occupancy Conditions

• The property is the primary residence of you, your spouse, or your child.

• The property is the principal residence of your child who is studying full time in Canada.

• The property is rented for at least 180 days per year at fair market value, and meets the qualified occupancy period requirement.

A “qualified occupancy period” means that one of the following individuals continuously occupies the property for at least one month:
a. An unrelated tenant under a valid rental agreement.
b. A related tenant under a valid lease paying market-rate rent (about 5% of property value).
c. You or your spouse holding a valid Canadian work permit and living in the property.
d. You, your spouse, parent, or child is a Canadian citizen or permanent resident.

2. Property Availability

• The property is not suitable for year-round use or is uninhabitable for most of the year.

• The property has been damaged by disaster or hazardous conditions, making it uninhabitable for at least 60 consecutive days.

• The property is under construction or renovation.

• The property was recently built and meets all of the following:

  • Not fully completed before April of the year, or

  • Completed in January–March but newly offered for sale and never occupied by an individual.

3. Ownership Type

• The owner is deceased, or an executor or joint owner of the deceased’s estate.

• A specified Canadian corporation, partnership, or trust.

• A new homeowner who acquired the property during the calendar year.

4. Property Location

• The property is a vacation home in a specified area, where the owner or spouse personally occupies it for at least 28 days per year.

How to File

• Filing deadline: April 30 each year.

• If, as of December 31, you own two or more residential properties, you must file a separate UHT return for each property.

• If the property is jointly owned, each affected owner must file separately.

• You must have a SIN (Social Insurance Number), ITN (Individual Tax Number), or BN (Business Number) to file.

• Complete the UHT-2900 form, then mail or fax it to the appropriate Tax Centre based on your location.

📄 Download the form here:
UHT-2900 Form (Canada Revenue Agency)

UHT Mailing Addresses

If you are an individual residing in, or a corporation located in:

• The United States, United Kingdom, France, Netherlands, or Denmark

• Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories, Nunavut, or Yukon

• Ontario (except Barrie, Sudbury, and Toronto)

📬 Mail to:
Winnipeg Tax Centre
Post Office Box 14001,
Station Main, Winnipeg MB R3C 3M3
Fax: 204-984-5164

If you are an individual residing in, or a corporation located in:

• Any country other than the U.S., U.K., France, Netherlands, or Denmark

• New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Quebec

• Ontario (Barrie, Sudbury, Toronto)

📬 Mail to:
Sudbury Tax Centre
1050 Notre Dame Avenue,
Sudbury ON P3A 5C2
Fax: 705-671-3994 or 1-855-276-1529

⚠️ Important Notice

Even if you don’t owe any tax, you must still file a UHT return if you meet the filing criteria.
Failure to file will result in severe penalties:

• Minimum $5,000 per year for individuals

• Minimum $10,000 per year for corporations