The UHT May Be Cancelled, But Vacancy Taxes Remain

As tax professionals, you are keenly aware of the constant changes our federal government makes to the Income Tax Act. Adjustments are made, and you must adapt. Not often, though, is a tax eliminated altogether. But in the case of the Underused Housing Tax (UHT), that is exactly what has happened – it was cancelled in the federal budget of November 4, 2025, but Canada’s underused housing taxes have not been eliminated. Here’s what you need to know for tax season 2026.

The Liberal government has proposed that the CPP survivors’ benefit be raised by 25%.  It’s an important step in the right direction, but it may not be enough to fairly represent the lost contributions from a lifetime of mandatory contributions by a deceased spouse.  This requires review and here’s why:

According to a recent ISPOS survey on behalf of the Institute of Actuaries, 23% of working Canadians say that the pandemic will change the timeline of their planned retirement. They feel they’ll need to work longer to earn enough to retirement, and yet, still only 52% of working Canadians think they’ll be able to live comfortably once they do retire. What needs to be considered in retirement planning to address the new demands of the pandemic, along the increasing life expectancy in Canada, and the increase in workers age 65+ in the workforce?

Although the government has yet to announce the prescribed interest rates for the second quarter, the rate will not change.

Transacting with cryptocurrency can have tax implications. Did you keep track of those transactions and the fair market value of the money when you did? It’s an issue that will become important, and potentially messy, as you get ready to file your return this year. You may also have to correct prior year’s returns.   

It is no secret that CRA service levels have been under stress during the Pandemic. Many tax practitioners can confirm that a phone call that would normally have to wait for three to five minutes to be answered. At the peak of tax season could take one hour or more, not even including the dozens of dropped calls. Lately, response times have slowly decreased; however, it is still at unacceptable levels. As CRA shifts most of its services online through My Account, My Business Accounts, and Represent a Client one could think that there is less demand for phone calls. These services have also been compromised.

The Principal Residence Exemption: The Nuances is part of a three-part series explaining the principal residence exemption under Canadian taxation law. It begins with the tax consequences on the change in use of a principal residence.