Underused Housing Tax: Impacts to Canadians and Non-Residents
Tax AlertProperty owners with vacant homes in Canada should be aware of the new underused housing tax (UHT), which came into effect on January 1, 2022.
Finance Minister Peter Bethlenfalvy tabled Ontario’s 2023-24 budget (ON Budget 2023) on March 23, 2023.
Contents
ON Budget 2023 projects a deficit of $2.2 billion for the 2022-23 fiscal year, compared to a $19.9 billion deficit projected in the previous budget. Ontario anticipates balancing the budget by 2024-25.
Fiscal results for the next three years are projected as follows:
| Year | Projected surplus (deficit) |
| 2023-24 | ($1.3 billion) |
| 2024-25 | $0.2 billion |
| 2025-26 | $4.4 billion |
Key insights include:
-
No changes to the corporate or personal tax rates, or the $500,000 small business limit.
-
The new Ontario Made Manufacturing Investment Tax Credit, which provides a 10% credit to Canadian-controlled private corporations with a permanent establishment in Ontario on qualifying investments.
-
A harmonized 12% tax rate on certain wine and wine coolers to replace the four existing tax rates in place, effective July 1, 2023.
-
Other notable items such as significant investments in housing, workforce, infrastructure, critical mineral strategy and support for low-income seniors.
Visit our Budget 2023 hub to learn more about all federal and provincial budgets.
Disclaimer
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.
Related Content
What Bill C-15 means for you, your trust, or your business
Budget 2025Bill C‑15 became law March 26, 2026, implementing tax measures from Budget 2025, Budget 2024, and FES 2024 affecting businesses and trusts.
Alternative minimum tax: Will you or your trust be affected by changes?
Tax alertFurther proposed amendments to the AMT rules released by Finance on August 12 may impact certain taxpayers. It's important to determine if you're affected and talk to your advisor about potential next steps.
Subscribe
Get the latest information in your inbox.
Subscribe to receive relevant and timely information and event invitations.