Despite significant discussion about increasing the capital gains inclusion rate, the federal government has deferred any increase until at least January 1, 2026, leaving the current rules in place for 2025 filings.
The principal residence exemption remains unchanged, meaning most homeowners will not pay capital gains tax on the sale of their primary home if properly designated.
Why this matters: Stability for 2025 provides certainty, but future changes remain possible — planning ahead still matters.
2. Underused Housing Tax Obligations Continue to Affect Some Owners
The federal Underused Housing Tax (UHT) was introduced to target vacant or under-used residential property, particularly involving non-resident or corporate ownership. While the government has proposed repealing the tax for future years, filing obligations remain relevant for prior periods unless and until changes are fully enacted.
Why this matters: Missed filings can result in penalties, even where no tax is ultimately payable.
3.CRA Focus on Real Estate Compliance Is Ongoing
Beyond any single tax measure, the broader trend continues: real estate remains a compliance focus for the CRA. This includes scrutiny of:
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Rental income reporting
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Expense deductions
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Principal residence claims
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GST/HST treatment on sales
Why this matters: Tax season is not just about filing — it’s about ensuring past and current real-estate positions align with how the law is now being enforced.
Dig deeper:
Government of Canada – Capital gains
https:/
Government of Canada – Principal residence
https:/
Government of Canada – Underused Housing Tax
https:/
That concludes our two-part Tax Season Series on recent real-estate tax changes.
As always, we’re here to help you understand how these rules apply to your particular purchase, sale, or ownership situation — and what they may mean before you file or close.