Underused Housing Tax effectively ended: no tax owed and no returns required from 2025 onward

Plain-language summary · AI-assisted · not legal advice

Two new provisions have been added to the Underused Housing Tax Act that together shut down the tax going forward. First, no tax is payable under the Act for 2025 or any later calendar year. Second, owners of residential properties are no longer required to file annual returns for 2025 or any later year. A separate provision (not yet in force) formally repeals the entire Act. The reference list for returns that must be filed before the Canada Revenue Agency will release refunds has also been updated to remove the Digital Services Tax Act. Anyone who was previously tracking Underused Housing Tax obligations — including non-resident owners, certain corporations, partnerships, and trusts — no longer has filing or payment obligations for 2025 and beyond.

Who this affects: non-resident property owners · Canadian corporations owning residential property · partnerships and trusts holding residential property · tax and compliance advisors · property managers tracking federal filing obligations