Compliance
Ensuring Compliance & Savings: Underused Housing Tax Repeal Effects and What Owners Need to Do
The UHT no longer applies to many owners post-2025—here’s how that impacts filing obligations, financial planning, and risk for property owners in Canada.
By NomadicTax Research Team • 5-8 min read • June 21, 2026
## What the Underused Housing Tax Repeal Means
Bill C-15, enacted March 26, 2026, **eliminated the requirement to file an Underused Housing Tax (UHT) return or pay the tax** for **2025 and subsequent calendar years**.([canada.ca](https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax/what-has-changed.html?utm_source=openai)) Affected owners who already filed returns for 2025 will receive letters canceling those returns. Filings and payments are still required for **2022, 2023, and 2024**.([canada.ca](https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax/what-has-changed.html?utm_source=openai))
## Who’s Affected & Who Must Still File
- Owners who held property subject to UHT and filed returns for **2022-2024** remain responsible for those filings.
- If you own a vacant or underused housing unit in Canada and haven’t filed for 2022-24, you need to determine if you owe UHT for those years.
- Going forward (from **2025 onward**), unless there are new amendments, most owners **do not need to file or pay UHT** for properties caught under this law.
## Practical Steps for Compliance and Planning
- Review whether you filed a UHT return for 2025. If yes, expect cancellation: no further action needed for those. If not filed, confirm your status and possible obligations for past years. > Example: if you owned an underused property in 2024 but didn’t file, you may face penalties or liabilities for that year.
- Keep records of ownership, usage, rental activity etc., especially for 2022-2024, since CRA may audit prior years.
- If contemplating acquisition of property in this category, plan assuming no UHT for 2025 onward—but still consider other property taxes and local regulations.
## Financial Planning & Risk Insights
- Owners no longer need to budget for UHT payments starting from 2025—this frees up cash flow and affects projections of holding costs.
- Potential refunds or cancellation may apply: if you already filed a 2025 UHT return, you’ll receive a notice; ensure CRA correspondence is reviewed and tax advisors engaged.
- Avoid making decisions based solely on UHT repeal: other regulatory or provincial taxes may still apply, and municipal rules vary.
## Key Action Items
1. Check CRA notices or letters to confirm cancellation of any 2025 UHT filings if filed.
2. For 2022-2024, ensure preparers or accountants have completed required returns if needed.
3. Update property cost models for relevant real estate investments, removing UHT from ongoing cost assumptions starting 2025.
4. Stay informed: watch for any subsequent amendments, or changes to thresholds or definitions of “underused housing”.
**Bottom line**: The UHT repeal brings relief for many—but past years’ obligations remain. Owners should take care to close out outstanding filings and adjust future expectations accordingly.