Consultation: Tax on unproductive use of housing by non-resident, non-Canadian owners

Join in: Open until September 17, 2021

Across the country, young Canadians who are starting to build their future are running up against sky-high housing prices. To ensure that Canada's housing market is a place to grow for Canadians starting their families and building their future, the government is taking action on several fronts, including proposing a tax on underused housing to support investments in housing affordability.

Budget 2021 announced the government's intention to implement a national, annual one per cent tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused, effective January 1, 2022. This will ensure that foreign, non-resident owners, who simply use Canada to passively store their wealth in housing, pay their fair share.

Our objective

Through this consultation process, the Department of Finance is seeking feedback on the design of the proposed Underused Housing Tax (UHT).

Key considerations

Full details on the government's proposed approach can be found in the technical background paper. Design aspects under consideration include:

Who is the focus of this consultation?

The department is seeking the views of tax practitioners and legal experts, as well as the real estate and tourism sectors. Interested members of the public are also invited to provide feedback.

In submitting your comments, please include:

Participate through email

Due to COVID-19 public health considerations, email submissions are preferred. Send us your comments at with "Underused Housing Tax" or "UHT" as the subject line.

Should you wish to provide comments by mail, please direct your submission to the attention of the Tax Policy Branch.

Treatment of confidential information

Information received through this comment process is subject to the Access to Information Act and the Privacy Act. Those providing comments are asked to indicate clearly the name of the individual or the organization that should be identified as having made the submission. In order to respect privacy and confidentiality, please advise when providing your comments whether you:

Should you indicate that your comments, or any portions thereof, be considered confidential, the department will make all reasonable efforts to protect this information.

What's next?

The department will consider your feedback as officials finalize the design of the proposed new tax and prepare draft legislation. The department expects that draft legislative proposals will be released for public comment later this year.

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