Underused Housing Tax (UHT) Historical Reporting Guide 2026

1. 2026 UHT Status: What Must Actually Be Filed?

The original page is outdated because it describes UHT as an annual tax that continues into 2026. Budget 2025 Implementation Act, No. 1 received Royal Assent on March 26, 2026 and amended the Underused Housing Tax Act. Affected owners do not have to file a UHT return or pay UHT for the 2025 calendar year or any subsequent calendar year. However, the amendment does not erase historical obligations. CRA expressly states that the requirement to file a UHT return and pay UHT still applies to the 2022, 2023 and 2024 calendar years. A person dealing with an outstanding historical return in 2026 therefore still needs to determine whether they were an affected owner on December 31 of the applicable year and whether an exemption applied. This means the current purpose of Form UHT-2900 in 2026 is historical compliance. The 2024 UHT return, for example, was generally due April 30, 2025. A person who did not file it and who was an affected owner can still be subject to the historical filing penalty and any applicable tax and interest. There is no new UHT-2900 filing for the 2025 calendar year.

2. Who Had to File a UHT-2900 for 2022–2024?

For the years UHT was in force, an affected owner generally had to file a separate UHT return for each Canadian residential property they owned on December 31 of the relevant calendar year. A person could be an affected owner even when no UHT was ultimately payable because an exemption applied. An excluded owner did not have obligations under the UHT Act. For example, an individual who was a Canadian citizen or permanent resident and owned the residential property in their own capacity was generally an excluded owner. However, ownership capacity mattered. A person acting as a partner of a partnership or trustee of a trust could have a different result, and the excluded-owner rules were amended effective January 1, 2023. The 2022 rules and 2023–2024 rules should therefore not be mixed. In particular, exemptions for specified Canadian partnerships, specified Canadian trusts and specified Canadian corporations were repealed effective January 1, 2023, meaning the 2023 and 2024 analysis must use the amended definitions.

3. Separate UHT Return for Each Residential Property and Multiple Properties

For historical UHT years, an affected individual who owned more than one residential property in Canada on December 31 generally had to file a separate UHT return for each property. The CRA online return specifically includes a multiple-residential-properties section for affected individuals who are not Canadian citizens or permanent residents. The original wording that every 'individual residential property title' requires a separate return is too simplistic. The UHT return is tied to the residential property and the person's ownership status/capacity, and certain multiple-capacity situations require careful analysis. The correct operational rule is to treat each historical residential property separately and complete the UHT-2900 information for each property for which the person was an affected owner. For historical individual affected owners with multiple properties, CRA's return can also contain a designation relating to the primary-residence and qualifying-occupancy exemptions. The taxpayer must follow the form's property-designation rules rather than assuming they can claim personal occupancy exemptions across multiple properties.

4. Historical UHT Valuation: Taxable Value and FMV Election

For a calendar year in which UHT applied, the general calculation used the property's taxable value, then multiplied the value by the 1% UHT rate and the applicable ownership percentage. Under the general taxable-value rule, the value was based on the greater of the property's assessed value established by the authority responsible for property tax and the property's most recent sale price on or before December 31 of the calendar year. An affected individual could make a fair market value (FMV) election instead. The FMV election is not simply permission to enter any estimated market price. The CRA process requires a written appraisal report prepared for the administration of the UHT Act by an appropriately designated professional appraiser. CRA identifies acceptable professional designations including AACI and CRA through the Appraisal Institute of Canada, DAR and DAC through the Canadian National Association of Real Estate Appraisers, and C.App./É.A. through the Ordre des évaluateurs agréés du Québec. The valuation method is therefore a historical compliance issue. It should not be used to calculate a 2025 or 2026 UHT liability because UHT no longer applies in those years.

5. Historical Exemptions and Filing Even When UHT Was $0

For 2022–2024, an affected owner could qualify for a statutory exemption from paying UHT. Common categories included a primary place of residence, qualifying occupancy, vacation properties in eligible areas, properties not suitable for year-round use, seasonally inaccessible properties, uninhabitable properties, newly constructed properties, certain employee accommodation and new-owner situations. An exemption from paying the tax did not normally eliminate the filing obligation for an affected owner. CRA states that even where an affected owner's residential property was exempt, Form UHT-2900 still had to be filed for the applicable calendar year. This is why the historical $1,000 minimum late-filing penalty could apply even where the UHT payable was zero. The exemption must also be matched to the correct calendar year. Some categories were changed by amendments, and certain specified Canadian partnership/trust/corporation exemptions were repealed effective January 1, 2023. The 2022 return should therefore be assessed under the 2022 rules rather than automatically applying the 2023 or 2024 rules.

6. Historical UHT Penalties, Interest and CRA Voluntary Disclosures

For historical UHT returns, the minimum failure-to-file penalty was reduced retroactively to $1,000 for an affected individual and $2,000 for an affected owner that was not an individual, such as a corporation. The penalty can also include a percentage component: 5% of the historical UHT payable plus 3% of that UHT payable for each complete calendar month the return is late, subject to the statutory calculation and the special rule that can apply after December 31 of the following calendar year. CRA provides examples showing why the penalty can exceed the $1,000 minimum even when the taxpayer ultimately claims an exemption. If the return is filed by December 31 of the following year, the penalty may be calculated differently than if it remains outstanding after that date. Historical UHT returns should therefore be dealt with promptly rather than assuming the penalty is always exactly $1,000 or $2,000. The CRA Voluntary Disclosures Program can apply to UHT matters under the current VDP framework, but relief is not automatic. The disclosure must meet the VDP eligibility conditions, including being voluntary, relating to a period at least one reporting period past due, containing an error or omission with applicable interest or penalties, providing the required supporting information and satisfying the payment/payment-arrangement requirements. A VDP application generally cannot be used to obtain relief from penalties or interest that have already been assessed.

7. 2026 Historical UHT Filing Workflow

If you discover an outstanding UHT obligation in 2026, first identify the historical calendar year and determine whether you were an affected owner on December 31 of that year. Then determine the applicable exemption, taxable value, ownership percentage and any amount payable. Prepare Form UHT-2900 for each applicable residential property and submit the historical return through an available CRA filing method. CRA currently states that individuals and corporations can file UHT returns online using the web version of the online form. Canadian citizens and permanent residents can also use the CRA secure portals where applicable. Mail and fax options also exist for the UHT-2900. The old reference to authorized NETFILE tax software should not be used as the general filing method for UHT-2900. After submission, retain the filing confirmation and supporting records. If the historical return is materially late and the taxpayer may qualify for the VDP, review the current CRA VDP conditions before filing a relief request. The VDP is not a substitute for filing an ordinary return where no VDP application is necessary.

Official Government & Tribunal References

• CRA — Underused Housing Tax: File the Return
• CRA — Underused Housing Tax: Who Must File and Pay
• CRA — UHTN1 Introduction to the Underused Housing Tax
• CRA — UHTN2 Calculating Underused Housing Tax Payable
• CRA — UHTN3 Filing a Return and Paying the Underused Housing Tax
• CRA — UHTN4 Specified Canadian Partnerships, Trusts and Corporations
• CRA — UHTN6 Primary Place of Residence Exemption
• CRA — UHTN7 Qualifying Occupancy Exemption
• CRA — How to Complete the UHT Return
• CRA — Form UHT-2900
• CRA — Voluntary Disclosures Program: Eligibility
• CRA — Voluntary Disclosures Program and UHT

Frequently Asked Questions (6 Verified Answers)

UHT Reporting Metrics

• UHT for 2025+No Return / No Tax
• Historical FormUHT-2900
• Historical UHT Rate1% of Taxable Value
• Historical Minimum Penalty

  $1,000 Individual / $2,000 Non-Individual