Buyers: What you need to know



On January 1, 2022, the Government of Canada introduced the Underused Housing Tax (UHT) with the intended goal of helping to cool down Canada’s housing market.

Generally speaking, the UHT is an annual 1% tax on residential property owned by non-resident, non-Canadians that is deemed to be vacant or underused by the Canadian Revenue Agency (CRA). There are situations, however, where the tax or reporting obligations could apply to Canadian citizens or residents, so it is important to understand whether you are an excluded or affected owner based on your specific situation.

Residential property owners can be categorized into 3 groups:

  1. Excluded owners that do not have to file at all
  2. Affected owners that must file but qualify for an exemption and don’t have to pay the tax
  3. Affected owners that will have to file and pay the tax

For example, the vast majority of individual Canadians who own property personally (i.e. not through a partnership, corporation, or trust) are excluded owners and do not have to file. In many circumstances where Canadians are impacted, such as when a property is owned by a Canadian corporation, owners may be exempt from paying the tax, but still must file the appropriate documentation or face fines of $5000+.

There are many different types of exemptions for the UHT, such as exemptions that may apply based on where your property is located. Similar to Canada’s Foreign Buyer’s Ban, properties located outside of Census Metropolitan Areas and Census Agglomerations (i.e. properties in Whistler and Pemberton) are eligible for exclusions, but their owners may still be required to file to obtain that exemption.

It is recommended that you talk to your accountant about how it may impact you and your Whistler or Pemberton property.

Filings for the 2022 tax year are due April 30, 2023.

Helpful resources to better understand Canada’s Underused Housing Tax:


The Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) prevents non-Canadians from buying residential property in Canada for 2 years starting on January 1, 2023.


The Government of Canada has passed a new law to help make homes more affordable for people living in Canada.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act prevents non-Canadians from purchasing residential property in Canada for 2 years.

The prohibition doesn’t apply to Canadians, permanent residents, or temporary residents who meet the exception criteria outlined in the Regulations.

The Act applies to:

  • non-Canadians
  • privately held corporations and other entities controlled by non-Canadians

Check out CMHC FAQs to find answers to the questions that are asked the most.