How wealth tax works in Canada
Canada has no broad annual tax on an individual's worldwide net worth. Shares, bank accounts, cryptoassets and other financial assets are not ordinarily subject to a recurring federal wealth-tax charge simply because they are owned.
Real estate is different in practice. Municipal property taxes are recurring charges on Canadian property, and provinces or municipalities can impose land-transfer taxes, vacancy taxes, speculation taxes or other housing-related levies.
The federal Underused Housing Tax was a 1% annual tax for affected owners of vacant or underused Canadian housing for the 2022 to 2024 calendar years. After Bill C-15 received Royal Assent in March 2026, no UHT is payable and no UHT return is required for 2025 and later years.
Wealth can still be taxed when it produces income or is disposed of. Interest, rent, dividends and business income are taxable, and one-half of a capital gain generally enters the income-tax base. Leaving Canada or dying can also trigger a deemed disposition.
Canadian residents with specified foreign financial property above the reporting threshold may have to file Form T1135 even though Canada has no general wealth tax. Reporting is not the same as a tax charge, but it is a material compliance obligation.
Tax rates at a glance
- Wealth tax
- 0%
- General net wealth tax
- 0%None
- Federal Underused Housing Tax
- 1% for 2022 - 2024
- Municipal property tax
- Local rates
- Capital-gains inclusion
- 50%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHigh-net-worth familiesProperty ownersCrypto holdersCross-border residents
Watch out for
- No annual net wealth tax does not mean that holding Canadian assets is tax-free. Property tax, rental-income tax, capital-gains tax, land-transfer tax and provincial or municipal housing levies can be significant.
- The federal Underused Housing Tax should not be described as a current 1% charge for 2026. The 2022, 2023 and 2024 filing and payment rules remain relevant, but the tax and return requirement ended for 2025 onward after Royal Assent.
- Provincial and municipal housing taxes are separate from the federal UHT. A person can be outside one regime and still have a vacancy, speculation or property tax obligation under another.
- Foreign-asset reporting can apply to Canadian residents even when the assets produce no income. T1135, trust, corporate and beneficial-ownership reporting should be checked independently of the tax rate.
- Asset-rich residents who leave Canada need to model departure tax and tax-deferred registered plans. The absence of a wealth tax does not remove the old country's exit-tax exposure.
Frequently asked questions
Does Canada have a wealth tax?
Canada does not currently levy a broad annual net wealth tax on individuals. Financial assets can still produce taxable income or capital gains, and real estate is commonly subject to municipal property tax and other local or provincial levies.
Is Canada's Underused Housing Tax still payable?
No for 2025 and later calendar years after the 2026 legislative change. The 1% federal UHT and related filing obligations still apply to affected owners for the 2022, 2023 and 2024 years.
Do Canadian residents report foreign assets?
Sometimes. A Canadian resident may have to file Form T1135 for specified foreign property above the reporting threshold, along with other trust or corporate information returns. Reporting does not itself create a general wealth tax.