Underused Housing Tax

The Underused Housing Tax is a federal 1% annual tax on vacant or underused homes owned by non-resident, non-Canadian entities.

Underused Housing Tax

September 30, 2025


What is the Underused Housing Tax?

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident, non-Canadian individuals or corporations. Certain exemptions apply for Canadian citizens, permanent residents, and qualifying uses of the property.

Why the Underused Housing Tax Matters in Real Estate

The UHT matters in real estate because it aims to address housing supply challenges by discouraging property speculation and foreign ownership of underused homes. It also generates federal revenue and supports broader housing policy goals.

Example of the Underused Housing Tax in Action

A foreign investor owns a vacant condo in Toronto valued at $800,000. Without qualifying exemptions, they must pay $8,000 annually under the Underused Housing Tax.

Key Takeaways

  • Federal tax on underused or vacant housing by non-residents.
  • Set at 1% of property value annually.
  • Aims to discourage speculation and improve supply.
  • Exemptions available for citizens, residents, and qualifying uses.
  • Applies nationwide, separate from provincial or municipal taxes.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

CMHC MLI Select

CMHC MLI Select is a multi-unit mortgage loan insurance program offered by the Canada Mortgage and Housing Corporation (CMHC). It provides insured. more

More For You

OpenForm, Alabaster Planning 32-And 28-Storey Towers In Metrotown

OpenForm, Alabaster Planning 32-And 28-Storey Towers In Metrotown

The proposal for 6470 and 6508 Silver Avenue in Burnaby. (OpenForm Properties, Alabaster Homes, Arcadis)

Vancouver-based developers OpenForm Properties and Alabaster Homes are partnering on a two-tower project in the Metrotown neighbourhood of Burnaby, according to a rezoning application set to be considered by Council this week.

The subject site of the proposal is 6470 and 6508 Silver Avenue, which is located directly across the street from Maywood Park and half a block away from Metrotown Station.

Keep Reading Show less

GTA Low-Rise Sales Top 10-Year Average For Second Month

GTA Low-Rise Sales Top 10-Year Average For Second Month
Aerial photo of Toronto skyline

GTA new home sales aren't out of the woods yet — but the low-rise market is making a strong case for optimism.

For the second consecutive month, single-family home sales in the Greater Toronto Area surpassed the 10-year average, buoyed by the enhanced HST rebate program introduced in April 2026. According to new data from BILD and market intelligence firm Altus Group, 830 single-family homes sold in the GTA in May — 26% above the segment's 10-year average, and a significant jump from the same month in 2025.

Keep Reading Show less

Canderel Breaks Ground On Forêt Forest Hill With Five-Bank Financing In Place

Canderel Breaks Ground On Forêt Forest Hill With Five-Bank Financing In Place

(liveatforet.ca)

At Bathurst and St. Clair, Canderel has officially started construction on Forêt Forest Hill — its three-tower, master-planned community in midtown Toronto.

The development has secured construction financing from a consortium of five major Canadian banks led by CIBC, with National Bank, TD, Desjardins, and Laurentian Bank rounding out the group.

Keep Reading Show less

Ontario Brokerages Required To File Finances With RECO Starting This Fall

Ontario Brokerages Required To File Finances With RECO Starting This Fall
Shutterstock

Ontario real estate brokerages are getting a new piece of homework, courtesy of their regulator.

Starting October 1, 2026, every brokerage in the province will have to attest to and submit an annual financial filing to the Real Estate Council of Ontario (RECO) — a requirement meant to give RECO a clearer, more consistent look at how brokerages manage money, and specifically the funds they're holding in trust on behalf of buyers and sellers.

Keep Reading Show less

Spring Market At Last? Canadian Home Sales Jumped 5.5% In May

Spring Market At Last? Canadian Home Sales Jumped 5.5% In May
Shutterstock

After a spring that never quite got going, the Canadian housing market found a gear in May.

Home sales across Canadian MLS® Systems rose 5.5% from April, according to the Canadian Real Estate Association (CREA) — the first month in 2026 to post any meaningful upward momentum in headline demand.

Keep Reading Show less

Toronto Rail Yards Would Bring 4,000 Homes To Downtown Rail Corridor

Toronto Rail Yards Would Bring 4,000 Homes To Downtown Rail Corridor

Fengate

What do New York City’s Hudson Yards, Chicago’s Millennium Park, and Paris’s Rive Gauche have in common? They’re all built directly on top of active railway lines. And Toronto has fresh plans to do the same – this time, as a brand-new mixed-use community rather than a standalone park.

For years, what to do with the airspace above the Union Station rail corridor has been a hot topic. Former Toronto mayor John Tory famously proposed Rail Deck Park – a 21-acre green space with a $1.7 billion price tag – back in 2016. Now, following several years of planning and ownership consolidation, the LiUNA Pension Fund of Central and Eastern Canada and master developer Fengate Asset Management have unveiled reworked plans for an entire mixed-use community called Toronto Rail Yards.

Keep Reading Show less

Coast Mental Health Planning 29-Storey Social Housing Tower In Mount Pleasant

Coast Mental Health Planning 29-Storey Social Housing Tower In Mount Pleasant

The proposal for 259-293 E 11th Ave and 216 Kingsway in Vancouver. (Diamond Schmitt Architects, Coast Mental Health)

A rezoning application has been submitted for a high-rise mixed-use tower in Vancouver that's residential space would consist entirely of social housing.

The subject site of the proposal is 259-293 East 11th Avenue and 216 Kingsway, located on the western side of Sophia Street in the Mount Pleasant neighbourhood, and is part of the Broadway Plan area.

Keep Reading Show less
TRENDING: Coast Mental Health Planning 29-Storey Social Housing In Mount Pleasant

Bank Of Canada Holds Interest Rate At 2.25%

Bank Of Canada Holds Interest Rate At 2.25%

The Bank of Canada held its overnight rate at 2.25% on June 10, citing a mix of domestic weakness and global turbulence that has complicated the economic outlook.

Canada's GDP slipped 0.1% in Q1, weaker than the Bank had projected in April, and the economy is expected to remain in excess supply even as growth rebounds modestly in Q2.

Keep Reading Show less
Privacy Policy About Us Terms of Use Advertise with Us Jobs Contact Us RSS Feed
All rights reserved SiteMedia © 2026.