Short answer
The federal Underused Housing Tax no longer requires returns or tax for the 2025 calendar year and later, following legislation that received royal assent on March 26, 2026. Earlier 2022–2024 obligations may still remain.
Why this question matters
An owner hears that UHT is “gone” and assumes an older missed return, penalty or information request can be ignored.
What the official rule or guidance says
CRA confirms that affected owners do not have to file UHT returns or pay UHT for 2025 and later. CRA also states that filing and payment obligations continue to apply to the 2022, 2023 and 2024 calendar years where applicable.
What this does not mean
This federal change does not cancel provincial or municipal vacancy taxes, non-resident tax issues, beneficial-ownership reporting or old UHT exposure. It also does not determine mortgage qualification.
A practical Ontario example
Illustration only: A corporation owned a residential property in 2023 and 2024. The 2025 cessation does not by itself resolve whether returns were required for those earlier years.
Practical next steps
Ask an accountant or tax lawyer to review ownership for each year separately. Keep UHT distinct from Toronto or Ottawa vacancy-tax declarations. If a refinance or sale is planned, address potential tax filings early so closing is not delayed.
Questions to ask before relying on the answer
- Is this an insurer, tax, legal, regulator or individual lender rule?
- Does it apply to an insured, insurable or uninsurable mortgage?
- How will the lender document and calculate the rent on this exact property?
- Which facts are confirmed, and which are still assumptions?
- What is the lowest-cost workable path through A, alternative/B, MIC or private lending?
Rajiv’s broker perspective
Rental files should be tested, not guessed. I would separate the legal and tax questions from the mortgage calculation, prepare one clean property schedule and then compare suitable lender policies. A strong result is not simply the largest approval—it is a mortgage the client can carry through vacancy, repairs, renewal and a realistic exit.
Related: Mortgage Knowledge Centre · Real Estate Centre · Updates & Rules Centre
Want the rental file tested before you make a decision?
Bring the property numbers, current mortgages and income documents. Rajiv can compare the practical A, alternative/B, MIC and private paths and identify which questions need an accountant or lawyer.