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Canada's Underused Housing Tax
Canadian Tax and
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Effective January 1, 2022, for the 2022 calendar year.
All owners, other than Canadian citizens or permanent residents of Canada
must file a declaration as to the current use of residential property owned
by them and located in Canada. This statement from the 2021 Budget is
A Canadian citizen or permanent resident will have to file a declaration
if they are an owner of the residential property in their capacity as a
trustee of a trust (other than a personal representative in respect of a
deceased individual) or as a partner of a partnership.
Private corporations which own residential property will have to
file a declaration. Public corporations are considered "excluded
The penalty for failure to file is a minimum of $5,000 for an individual
or $10,000 if the person is not an individual.
National annual 1% tax on the value of underused or vacant residential
An exemption from the tax may be available to be claimed by the owner of
The tax is based on the taxable value of residential property located in
Canada considered to be vacant or underused, if the owner is not a Canadian
citizen or permanent resident of Canada. Taxable value means an amount that is:
a prescribed amount; or if no amount is prescribed, the greater of
the assessed value as assessed by a provincial or federal
the residential property's most recent sale price on or before
December 31 of the calendar year.
A person may elect to use the fair market value of the property.
Due date for the Underused Housing Tax return, election for fair market
value, and the payment of tax for a
calendar year is April 30th of the following calendar year.