Mandatory Form UHT-2900 Filings: Even if your property is fully exempt from the 1% tax, you must file **Form UHT-2900** to declare your exemption if you are an affected owner. Failure to file on time triggers a minimum penalty of **$1,000 CAD for individuals** and **$2,000 CAD for corporations**.
UHT Filing Obligation Checker
Determine if you are required to file Form UHT-2900 with the CRA:
Underused Housing Tax Rules
The Underused Housing Tax is an annual **1% tax** on the taxable value of vacant or underused residential property in Canada. It applies to owners who are classified by the CRA as "affected owners" (predominantly foreign nationals and non-residents, but also certain Canadian corporations, trustees, and partnerships).
Exemptions to the Tax:
Even if you are an affected owner, you can claim an exemption from paying the 1% tax if the property meets any of the following criteria:
- Primary Place of Residence: The property is occupied as a primary residence by you, your spouse, or your child.
- Qualifying Occupancy: The property is occupied by qualifying tenants for at least 180 days in the calendar year.
- Seasonal Accessibility: The property is in a designated rural area and is used as a vacation home by you or your spouse for at least 28 days.
Calendar Years Applicability (2022 to 2026+)
The reporting rules for UHT have changed:
- 2022, 2023, and 2024 Tax Years: Full UHT filing obligations apply. Affected owners must submit Form UHT-2900 for each of these years to claim exemptions and avoid late-filing penalties.
- 2025 Calendar Year and Onwards: The Canadian government has eliminated the UHT reporting requirements for most individual owners. However, audits for previous tax years (2022–2024) remain active, and penalties will still be assessed for missing filings.