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.

As we all know, it’s been a roller coaster week in tariff news. The Canadian dollar started to sink, although not to its lowest historical level-yet. The 30 day pause in implementation of the U.S. tariffs has provided a wake up call: What effect will such a Black Swan event have on portfolios and, by extension, retirement plans?

The Bank of Canada cut its interest rate by .25% to 3% on January 29, a full two percentage points lower than was the benchmark in 2023.

Statistics Canada data shows that Canadian parents are starting families later in life than previous years. This trend not only affects housing markets but also influences social services, healthcare needs, and community planning.

Knowledge Bureau hosted its first half-day Mini CE Summit which focused on Rookie Tax Training to bring Canada’s Income Tax Fundamentals course to life, and surprisingly, it was well attended by seasoned pros as well.

Last week, it was announced that the capital gains inclusion rate increase would be postponed to January 1, 2026. How can you advise your clients on this now?

On January 23 , Finance Canada released draft legislation to confirm the extension of the charitable donation deadline for the 2024 tax year to February 28, 2025. However, this law won’t be passed until the House of Parliament returns from the prorogue.