→ The short answer: Do you still need to file a UHT return for 2025?
The federal Underused Housing Tax (UHT) is eliminated for the 2025 calendar year and every year after. No UHT return is required and no UHT is payable for 2025 and subsequent years, following Royal Assent of Bill C-15 on March 26, 2026. All UHT obligations for the 2022, 2023, and 2024 calendar years remain in force, including late-filing penalties of at least $1,000 per property for individuals and $2,000 for non-individuals, plus 5% of the tax owing and 3% for every month a return is late. The federal repeal does not affect the Toronto Vacant Home Tax, the Ottawa Vacant Unit Tax, Hamilton’s vacancy tax, or BC’s Speculation and Vacancy Tax — those municipal and provincial taxes continue to apply.
— Why this question is suddenly everywhere this spring
Every April for the past three springs, a small group of Canadian property owners, and a much larger group of non-resident owners, had to file a federal UHT return by April 30. The form was short. The instructions were long. And for most filers, the actual tax owing was zero.
This spring was supposed to be the fourth round. It was not. Canada’s 2025 federal budget eliminated the UHT for the 2025 calendar year, and the change was passed into law on March 26, 2026, just one month before the April 30, 2026 deadline that would otherwise have applied.
That timing is why the question is so common right now. Owners who set up calendar reminders in early 2026 are now searching to confirm whether they still need to act on them. The answer for 2025 and onward is no. The answer for any year between 2022 and 2024 you may have missed is something else entirely, and the rest of this article walks through both pieces.
→ Pick your path: Are you actually affected?
Here is the quick triage for the 2022 to 2024 calendar years:
You were generally classified as an excluded owner. No UHT return was required for your home owned in your own name.
You were an affected owner for all three years and needed Form UHT-2900 for each property, each year.
For 2022 you likely needed to file. From 2023 onward, most private Canadian corporations were reclassified as excluded owners. The 2022 return still matters.
You stayed an affected owner for all three years. Filing was required even when no tax was payable.
If your path lands on affected owner for any of 2022, 2023, or 2024, keep reading. The back-year cleanup steps are below.
— How a 1% tax got quietly killed in Budget 2025
The UHT was launched in 2022 to discourage non-residents from leaving Canadian homes vacant. It was a federal annual tax equal to 1% of a residential property’s value, payable by certain owners on December 31 of each year.
By the time Budget 2025 was tabled on November 4, 2025, the picture had soured. The Department of Finance described the tax as costly to administer and projected that eliminating it would actually improve federal finances by roughly $30 million per year. Most of the targeted behaviour was already covered by the federal foreign buyer ban and by municipal vacancy taxes in major cities.
The budget proposed full elimination starting with the 2025 calendar year. That proposal became law on March 26, 2026, when Bill C-15, the Budget Implementation Act, 2025, No. 1, received Royal Assent. The Underused Housing Tax Act remains on the books and is scheduled to be repealed entirely on January 1, 2035, but no tax and no filing applies between 2025 and that final repeal. If you own a residential investment property, one item just came off your annual checklist.
→ 2022–2024 versus 2025-and-beyond: What changed at a glance
The mechanical difference between the two periods is easier to see in a side-by-side view.
| Calendar year | Return required? | UHT payable? | Penalties still active? |
|---|---|---|---|
| 2022 | Yes, for affected owners | Yes, 1% where no exemption | Yes |
| 2023 | Yes (narrower group after reclassification) | Yes | Yes (minimum penalties reduced) |
| 2024 | Yes, same as 2023 | Yes | Yes |
| 2025 onward | No | No | Not applicable |
ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.
→ Five steps for handling outstanding 2022–2024 UHT returns
If you owned residential property during any of 2022, 2023, or 2024 and were classified as an affected owner, the federal repeal does not erase those obligations. Penalties and interest continue to apply to late or missing returns from those years.
- 1Confirm ownership classification.For each calendar year and each property, confirm whether you were an excluded owner or an affected owner. Most Canadian individuals were excluded. Bare trusts, partnerships, and non-resident owners were not.
- 2Check each year separately.Form UHT-2900 was due April 30 of the year after the calendar year being reported. So 2022 was due April 30, 2023; 2023 was due April 30, 2024; and 2024 was due April 30, 2025.
- 3Estimate exposure before contacting the CRA.The minimum penalty floor is $1,000 per property per year for individuals and $2,000 for non-individuals. On top of that sits 5% of the tax owing plus 3% of the tax owing for every full month the return is late.
- 4Consider the Voluntary Disclosures Program.The Voluntary Disclosures Program, or VDP, is a formal CRA process that can reduce penalty exposure for taxpayers who come forward before the CRA contacts them. Acceptance is not automatic, but for clean cases it often results in partial or full penalty relief.
- 5Get professional eyes on the file.Reviewing back-year returns with an advisor familiar with CRA audit triggers and processes typically reduces the chance of further problems.
ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only. Values illustrative; assumes 1% UHT applies with no exemption.
— The three vacancy taxes that did not go away
Each one operates separately, with its own rate, its own definition of vacant, and its own deadline. Toronto’s Vacant Home Tax applies at 3% of the property’s current value assessment for homes left vacant during the year, with a mandatory annual declaration. Ottawa’s Vacant Unit Tax applies at 1% of assessed value. Hamilton charges 1% of the current value assessment, also through an annual declaration. British Columbia’s Speculation and Vacancy Tax ranges from 0.5% to 2% depending on owner residency status.
The practical effect for Ontario owners is that a property left vacant in Toronto, Ottawa, or Hamilton still requires action even though the federal UHT is gone. Missing a municipal declaration generally triggers an automatic deemed-vacant designation, which can mean a tax bill in the thousands plus penalties. The federal change is real and welcome, but it is not a one-stop solution.
ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only. BC SVT rate shown at upper bound (2.0%); actual rate varies by residency.
→ Five mistakes Ontario property owners are making right now
The repeal is fresh enough that several patterns of avoidable error are already showing up. Watching for these may save Ontario owners both money and CRA correspondence.
- →Assuming the repeal erases prior penalties. The federal change applies to 2025 onward only. Penalties for unfiled 2022, 2023, or 2024 returns continue to accrue.
- →Confusing the federal UHT with the Toronto Vacant Home Tax. They are different taxes, with different rates, deadlines, and authorities. The federal repeal leaves the Toronto tax fully in force.
- →Skipping bare trust filings for 2024. Bare trusts remained affected owners through the 2024 calendar year. A bare trust holding residential property was generally required to file Form UHT-2900 by April 30, 2025.
- →Waiting for a CRA notice instead of using the Voluntary Disclosures Program. Owners who come forward through the VDP before CRA contact may qualify for reduced penalties. Once a CRA notice arrives, that option often closes.
- →Forgetting to close out UHT registration. Corporations and bare trusts should confirm through CRA My Business Account that their UHT registration status is correctly closed out for 2025 to avoid automated late-filing prompts.
? Frequently asked questions about UHT in 2026
Do I still have to file a UHT return for 2025?
What happens if I never filed a UHT return for 2022, 2023, or 2024?
Will the CRA refund the UHT I already paid for prior years?
Does the Toronto Vacant Home Tax still apply now that UHT is gone?
As a Canadian citizen who owns one home, was I ever required to file UHT?
If I own a property through a bare trust, am I now in the clear?
What is the minimum penalty for filing a UHT return late?
When does the Underused Housing Tax Act fully come off the books?
Need help with back-year UHT returns?
If you have unfiled 2022 to 2024 UHT returns, an outstanding CRA notice, or a vacant property in Toronto, Ottawa, or Hamilton, our team can map out a clear next step.
Book a ConsultationSources & References
- Government of Canada. Budget 2025: Canada Strong (November 4, 2025) — Tax Measures: Supplementary Information. https://budget.canada.ca/2025/report-rapport/tm-mf-en.html
- Canada Revenue Agency. Underused Housing Tax (UHT) program page. https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html
- Parliament of Canada. Bill C-15, Budget Implementation Act, 2025, No. 1 (Royal Assent March 26, 2026). https://www.parl.ca/legisinfo
- Justice Laws Website. Underused Housing Tax Act, S.C. 2022, c. 5. https://laws-lois.justice.gc.ca/eng/acts/U-0.5/
- City of Toronto. Vacant Home Tax program. https://www.toronto.ca/services-payments/taxes-utilities/vacant-home-tax/
- Government of British Columbia. Speculation and Vacancy Tax. https://www2.gov.bc.ca/gov/content/taxes/speculation-vacancy-tax
- Canada Revenue Agency. Voluntary Disclosures Program (VDP). https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/voluntary-disclosures-program-overview.html
