The Housing Tax Act, which came into effect in Canada in 2022, is designed to address the issue of vacant or underused housing. The Act imposes an annual tax on such properties, known as the Underused Housing Tax (UHT), which is calculated as 1% of the property’s taxable value, unless the owner is an excluded owner or qualifies for an exemption.
Filing Options
The Canada Revenue Agency (CRA) has published instructions and filing options for the UHT Tax Return, including an online filing option and a paper-based option.
Filing by Mail
If filing by mail, the taxpayer should use the mailing address specified in the “Additional Information” section of the UHT Return and Election Form, and send the return and payment by registered mail.
Filing Online
For online filing, taxpayers must enter their account information, including their Individual Tax Number, Social Insurance Number, or Business Number, as well as the address and taxable value of the property, and a Digital Access Code, which can be obtained by providing personal or business information to the CRA. Once the return has been successfully submitted, a Confirmation Number will be issued, which should be retained for record-keeping purposes.
Payment Methods
The CRA accepts a range of payment options for the UHT, as well as other tax accounts, which are detailed on their website. It is recommended that taxpayers include their SIN, ITN, or BN-RU, as well as the relevant period, with any payments made to the CRA.
