Underused Housing Tax

[steaky]

The Underused Housing Tax is an annual 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022. The tax usually applies to non-resident, non-Canadian owners. In some situations, however, it also applies to Canadian owners.

https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html

Unless I'm mistaken, it appears to me that someone who lost PR status and not occupy their home (s) for a certain period will have to file the tax return and pay the 1% tax rate of the Underused Housing Tax!

 

[steaky]

I wondered when they will provide more information and details about the tax. The last update was modified a month ago and the return is due on May 1, 2023.

 

[Liamsimpsony]

Yes, based on the information provided on the Canada Revenue Agency's website, it seems that the Underused Housing Tax in Canada imposes a 1% tax on the ownership of vacant or underused housing. While the tax typically applies to non-resident, non-Canadian owners, there are situations where it can also apply to Canadian owners, such as individuals who have lost their permanent resident status and do not occupy their homes for a certain period. In such cases, these individuals would likely be required to file the tax return and pay the 1% tax rate as specified by the Underused Housing Tax regulations.