Quick answer. On March 26, 2026, Bill C-15 (Budget 2025 Implementation Act, No. 1) received Royal Assent and ELIMINATED the federal Underused Housing Tax (UHT) for 2025 and all subsequent calendar years. Affected owners do NOT need to file a UHT return or pay the 1% tax for 2025 or any future year. However, the UHT filing obligation and 1% tax REMAIN in full force for 2022, 2023, and 2024 calendar years — owners who were 'affected owners' during those years must still file the UHT-2900 return and pay the tax. CRA extended filing deadlines: 2022 to April 30, 2024; 2023 to April 30, 2025; 2024 to April 30, 2026. Penalties for unfiled 2022-2024 returns are severe: minimum $5,000 per owner for individuals and $10,000 per owner for non-individuals (corporations, partnerships, trusts), or greater based on the calculated tax + late-filing formula. The UHT Act itself is not repealed until January 1, 2035 but is dormant. Provincial and municipal vacancy taxes (BC, Vancouver, Toronto, some Ontario municipalities) are UNAFFECTED by the federal repeal and continue. Non-resident rental owners still owe: NR6 election filing, monthly 25% withholding, NR4 reporting, and Section 216 returns — see our NR6 guide. Sources: CRA UHTN15 (updated for Bill C-15), Bill C-15 Royal Assent March 26 2026, insightscpa.ca UHT 2026 status.
What Bill C-15 Changed
Bill C-15 (formally the Budget 2025 Implementation Act, No. 1) received Royal Assent on March 26, 2026. Its effect on the UHT:
- UHT obligation ELIMINATED for 2025 calendar year and all future years.
- No UHT return (Form UHT-2900) required for 2025 or after.
- No 1% UHT tax owed for 2025 or after.
- The UHT Act itself is not repealed until January 1, 2035, but is dormant.
This is a substantial simplification for non-resident and non-CCPC owners of Canadian residential property who had been navigating annual UHT filings since 2022. The federal government's rationale for repeal was that the UHT produced significant compliance burden with limited revenue and limited effect on the underlying housing supply issue it was designed to address.
What Still Applies for 2022-2024
The UHT for 2022, 2023, and 2024 tax years REMAINS enforceable. Affected owners who did not file are still liable. Key details:
- Tax rate: 1% per year on the taxable value of the residential property.
- Affected owner categories (must file): foreign nationals, non-Canadian corporations, Canadian corporations that are not CCPCs, certain partnerships and trusts.
- Excluded owner categories (never had to file): Canadian citizens/permanent residents owning directly, CCPCs, specified Canadian partnerships, specified Canadian trusts.
- Filing deadlines with extensions: 2022 → April 30, 2024; 2023 → April 30, 2025; 2024 → April 30, 2026.
- Penalties: minimum $5,000 individuals / $10,000 non-individuals, or greater based on formula (5% of UHT owed + 3% × months late).
The 2023 Amendment That Removed Most CCPCs
A separate 2023 amendment to the UHT Act reclassified most CCPCs, specified Canadian partnerships, and specified Canadian trusts as 'excluded owners' — meaning they were exempt from filing for 2023 and later even before Bill C-15. Owners in these categories who filed 2022 UHT returns should have stopped filing for 2023 and 2024; those who did not stop can typically request administrative penalty relief for unnecessary filings.
Provincial and Municipal Vacancy Taxes: Unaffected
Bill C-15 only affects the federal UHT. Provincial and municipal vacancy taxes remain in effect and are unaffected:
- BC Speculation and Vacancy Tax: continues, 0.5-2% depending on owner category.
- Vancouver Empty Homes Tax: continues, currently 3%.
- Toronto Vacant Home Tax: continues, 1% (increasing over time).
- Ottawa Vacant Unit Tax: continues, 1%.
- Alberta: has NO provincial vacancy tax; Calgary has NO municipal vacancy tax.
For Alberta-based landlords, Bill C-15 removes the entire vacant/underused property tax framework — a real simplification versus what BC or Ontario landlords face.
What Non-Resident Rental Owners Still Owe
The UHT repeal does NOT change other non-resident rental obligations. Non-resident owners of Canadian rental property still owe:
- 25% withholding tax on gross rental income (ITA s.215) unless NR6 election is filed.
- NR6 election filing before January 1 of each tax year to shift to net-basis withholding.
- NR4 slip issuance to owner and NR4 Summary to CRA by March 31 annually.
- Section 216 return (Form T1159) reconciling actual net rental income with amounts withheld, due within 2 years of tax year end (or June 30 following year if NR6 was filed).
See our full NR6 guide at /blog/nr6-election-non-resident-landlord-canada-guide for these obligations.
If You Have Unfiled 2022-2024 UHT Returns
The Voluntary Disclosure Program (VDP) may reduce penalties for owners who file late before CRA initiates enforcement. Contact a qualified Canadian tax professional experienced with UHT to evaluate your specific situation. Late-filing $5,000-$10,000 minimum penalties per year per owner can accumulate to $30,000+ across the 2022-2024 window if all three years are unfiled.
Frequently Asked Questions
Does the UHT elimination apply retroactively to 2024?
No. Bill C-15 eliminates the UHT effective 2025 and forward. 2024 obligations remain enforceable, and the 2024 filing deadline (extended to April 30, 2026) still applied for affected owners.
Do Canadian citizens and permanent residents ever owe the UHT?
For 2022-2024, Canadian citizens and permanent residents owning residential property DIRECTLY were generally excluded owners — no UHT filing required. For 2025 forward, the UHT is eliminated entirely for everyone. The specific rules for holding through corporations, partnerships, or trusts are more nuanced; consult a tax advisor.
Does the UHT repeal affect my Calgary rental?
For most Calgary landlords (Canadian citizens/permanent residents owning directly, or through CCPCs), the repeal simplifies things by removing the UHT-filing question entirely from 2025 forward. For non-resident Calgary landlords, the UHT was one of several federal tax touchpoints; the others (NR6, NR4, Section 216, 25% withholding) all remain.
Does UrbanLease handle UHT-related obligations for owner clients?
For managed non-resident owner clients, UrbanLease coordinates the Canadian resident agent obligations (25% withholding, NR4 reporting, monthly remittance) and refers to a qualified Canadian accountant for UHT filings and Section 216 return preparation. Property management services provided by Chabi.ca, a RECA-licensed Alberta brokerage.
Bottom Line
Bill C-15 (Royal Assent March 26, 2026) ELIMINATED the federal Underused Housing Tax for 2025 and all future years. Owners with unfiled 2022-2024 returns still owe those and face $5,000-$10,000 minimum penalties per year per owner. Provincial and municipal vacancy taxes (BC, Vancouver, Toronto, Ottawa) are unaffected; Alberta has none. Non-resident landlords still owe the other Part XIII / Section 216 obligations. This is a real simplification for most Alberta-based landlords going forward. UrbanLease coordinates the resident-agent obligations for non-resident owner clients under Chabi.ca.
Reviewed 2026-08-02. General information only, not tax advice. Consult a qualified Canadian tax professional for specific UHT filing status. Verify current CRA guidance at canada.ca UHT information page.