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.

Are you in the dark about tax rules for employed and self-employed taxpayers?  Shore up your knowledge base now with two new short courses from Knowledge Bureau in the new Knowledge Gap Series. Here’s what you’ll learn online (that means in the comfort of home, office, cottage or beach), and the price is right, too.

Mark your calendar: there are some important dates coming up for those with an interest in tax and financial planning, including some exciting new educational opportunities with Knowledge Bureau. 

According to the July 8 Economic Snapshot, the Canadian economy is projected to shrink by 6.8%, the worst economic contraction since the Great Depression.  Worse, Canadians face an unprecedented total market debt level of $1.236 Trillion dollars projected for the end of 2020-21 and the government plans to finance $713 billion of that, which means that each of Canada’s 37,742,154 people, now face a liability of $32,748.66.  It’s no wonder the PBO issued a report on a “wealth tax” the same day.

Here’s a quick overview of the pandemic response provisions and their costs.

It doesn’t come as a shock: but a new survey from Ipsos and MNP Ltd show just how significantly Canadians are struggling financially as a result of the pandemic. Scarier still, many aren’t sure what their next steps are to regain their financial footing once the extended CERB period finally runs out if their job situation hasn’t changed.

The government responded quickly to get money to Canadians affected financially by the pandemic, with new and updated measures and benefits occurring regularly throughout March and April. What was implemented? Learn more as we consider the cost with the release of the Federal Government’s July 8 Economic Snapshot.