CRA extends deadline for underused housing tax by 6 months

The Canada Revenue Agency (CRA) has extended the deadline for homeowners to file their taxes for vacant or underused residential properties in the country by six months.

Homeowners in Canada now have until April 30, 2024 to file their returns for the federal Underused Housing Tax (UHT) for the 2022 calendar year without facing penalties or interest, the CRA said in a statement Tuesday.

The previous deadline for the 2022 calendar year was Oct. 31, 2023.

The CRA said it was waiving penalties and interest for any late UHT returns or payables, provided the return is filed and the tax is paid by the new deadline.

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“This transitional relief will allow more affected owners to meet their obligations under this new law, which is part of the government’s long-term plan to increase available housing for Canadians,” the agency said.

1:40 Toronto increases vacant home tax to 3%

The UHT took effect on Jan. 1 of last year.

It is an annual one per cent tax on the ownership of vacant or underused housing in Canada.

The UHT is independent of other provincial and municipal taxes.

According to the CRA, this tax generally applies to foreign nationals who own a residential property, like a house or condominium, in Canada.

However, it may also apply to some Canadian citizens and permanent residents, such as certain partners and trustees, as well as some Canadian companies.

To help determine if someone is liable or exempt from the UHT, the CRA has an online self-assessment tool that asks a series of questions.