Major Update to Canada’s Underused Housing Tax

On March 26, 2026, the Canadian government passed new legislation under Bill C-15, introducing important changes to the Underused Housing Tax (UHT).

The most important takeaway:

• Many affected property owners no longer need to file or pay UHT starting from 2025 onward.

This update removes a significant administrative burden for many property owners who were previously required to file annual returns.

What Has Changed

Under the new rules:

• No UHT filing or payment is required for 2025 and future years (for affected owners)
• However, filing requirements still apply to:
  • 2022
  • 2023
  • 2024

This means past obligations remain, but future compliance is significantly reduced.

What If You Already Filed for 2025

If you already submitted a UHT return for the 2025 calendar year before this change:

• The CRA will contact you directly
• Your return will be cancelled

No additional action is required unless notified.

Why This Matters for Property Owners

When the UHT was first introduced, many property owners—especially:

• non-residents
• corporations
• certain ownership structures

were required to file annually, even if no tax was actually owed.

This created confusion and unnecessary compliance work.

This update signals a shift toward simplifying the process and reducing unnecessary filings.

What Property Owners Should Do Now

Even though future requirements are reduced, it’s still important to:

• Confirm whether you were required to file for 2022–2024
• Ensure past filings are complete and accurate
• Keep records of ownership structure and usage

Missing prior filings can still lead to penalties.

What This Means for Landlords and Investors

For landlords and property investors, this change is generally positive:

• Less administrative burden
• Fewer annual filings
• Clearer compliance requirements going forward

However, it also highlights an important point:

• Tax and compliance rules can change quickly

Staying informed — or working with professionals — is key to avoiding unnecessary risk.

Final Thoughts

The 2026 update to the Underused Housing Tax is a welcome change for many property owners.

While it reduces future obligations, it does not eliminate past responsibilities.

Understanding where you stand — and making sure everything is properly handled — is still essential.

Source: Government of Canada – Underused Housing Tax Notice (March 26, 2026)

The Topromanage Experience

Discover decades of industry expertise that covers all of the GTA and Southern Ontario.

Get To Know Us