Factsheet: The Underused Housing Tax (UHT): Who is exempt from paying the tax?

The Underused Housing Tax (UHT): Who is exempt from paying the tax?

If you’re affected by the Underused Housing Tax and own residential property on December 31, you must file a UHT return for that calendar year. You must also pay the tax unless you qualify for an exemption:

1) Location and use of the residential property

You may be exempt from paying the tax if you are an individual and the property is:

• A vacation property located in an eligible area of Canada and used by you or your spouse or common-law partner for at least 28 days in the calendar year

2) Occupant of the residential property

You may be exempt from paying the tax if the property is:

• Used as a primary place of residence
• Used for qualifying occupancy

3) Availability of the residential property

You may be exempt from paying the tax if the property is:

• Newly constructed
• Not suitable to be lived in year-round, or seasonally inaccessible
• Uninhabitable for a certain number of days because of a disaster, hazardous conditions, or renovation

4) Type of owner

You may be exempt from paying the tax if you are a:

• New owner in the calendar year
• Deceased owner, or a co-owner or personal representative of a deceased owner

Learn more about exemptions

Remember that an affected owner who is exempt from paying the UHT must still file a UHT return by April 30.

To learn more about each exemptions from the tax, visit: canada.ca/cra-uht.