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 Jill Burridge tabled Prince Edward Island’s 2023-24 budget (PEI Budget 2023) on May 25, 2023.
PEI budget 2023 projects a deficit of $66.2 million for the 2022-23 fiscal year, compared to a $92.9 million deficit projected in the previous budget.
Fiscal projections for the next three years are as follows:
| Year | Projected surplus (deficit) |
| 2023-24 | ($97.6 million) |
| 2024-25 | ($58.0 million) |
| 2025-26 | ($31.5 million) |
Key insights include:
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A new five-bracket system starting in 2024 with higher income thresholds and lower tax rates in the first four brackets (to replace the current three-bracket income tax system and surtax).
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An increase to the basic personal income tax exemption.
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Changes to other existing personal tax credits, including an increase to the children’s wellness tax credit, a higher income threshold for the low-income tax reduction program, and an increase to the age amount tax credit for seniors.
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Other notable changes such as significant investments in health care, housing, child care, and continuing to freeze property tax for the 2023 fiscal year.
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.
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