If you're a non-resident owner of a GTA property, here's some genuinely good news for a change: the federal Underused Housing Tax has been eliminated, and you no longer need to file an annual return for it. Here's exactly what changed, and — just as importantly — what hasn't.
What Actually Happened
On March 26, 2026, Bill C-15 received Royal Assent, formally enacting a package of measures from the 2025 federal budget — including the full elimination of the Underused Housing Tax (UHT). As a result, there is no UHT payable and no UHT return required to be filed for the 2025 calendar year or any year after it.
Practically speaking, if you own residential property in Canada and were previously required to file an annual UHT return as a non-resident or non-Canadian owner, that obligation is simply gone going forward.
What Hasn't Changed
This is the part that catches people off guard, so it's worth being precise about it.
Your 2022, 2023, and 2024 UHT obligations still apply. If you had a filing requirement for those years and haven't filed, the associated penalties and interest are still fully enforceable. This repeal is forward-looking only — it doesn't erase past-year obligations.
Provincial and municipal vacant/underused housing taxes are completely separate and unaffected. This is the single most important distinction for GTA owners specifically: Toronto's own Vacant Home Tax — the annual declaration requiring every residential property owner to confirm their property's occupancy status — is a City of Toronto program, entirely independent of the federal UHT. It still applies in full, with the same filing requirement and the same consequences for missing the declaration.
Your other non-resident tax obligations are unchanged. NR4/NR6 filings, monthly withholding remittances on rental income, and Section 216 elections through the CRA all continue exactly as before. The UHT repeal simplifies one specific piece of the compliance picture — it doesn't touch the rest.
Why This Distinction Matters So Much
We've seen non-resident owners understandably breathe a sigh of relief at "the housing tax is gone" headlines, only to still miss Toronto's Vacant Home Tax declaration months later because they assumed it was the same program. It isn't. One is a federal tax that no longer exists. The other is a City of Toronto declaration requirement that most definitely still does — and missing it still results in your property being deemed vacant by default, triggering the tax regardless of actual occupancy.
What This Means Practically for Your Compliance Checklist
If you're a non-resident owner of a GTA property, here's what your obligations now look like:
✅ No longer required: Annual federal UHT return (2025 onward)
⚠️ Still required if applicable: Federal UHT returns for 2022-2024, if you had an outstanding obligation
✅ Still required every year: City of Toronto Vacant Home Tax declaration
✅ Still required: NR4/NR6 filings and monthly non-resident withholding remittances on rental income
✅ Still required: Section 216 election if you want to be taxed on net rather than gross rental income
The Bottom Line
The federal UHT repeal is a genuine simplification for non-resident property owners — one less annual filing to track, and one less way to incur penalties for a missed deadline. But it's easy to overcorrect and assume your broader compliance picture has gotten simpler than it actually has. Toronto's Vacant Home Tax and your other non-resident tax obligations haven't gone anywhere.
Want help sorting out exactly which filings still apply to your specific property? Learn about our non-resident services or contact our team — we track these obligations for clients so nothing gets missed.
This article summarizes general federal and municipal tax policy and is not tax or legal advice. Confirm your specific obligations with a cross-border tax accountant.
