Does the Underused Housing Tax exempt vacation or recreational properties in certain parts of Ontario?

There is a specific exemption pathway for vacation and recreational property under the Underused Housing Tax, but it is narrower than simply owning a cottage or seasonal home. To qualify, the property generally needs to be located in a prescribed eligible area of Canada, as defined in the federal regulations, and the owner generally needs to meet a minimum personal-use requirement measured over the calendar year, in addition to the location test. Both conditions need to be met together - meeting one without the other is not enough.

Because the list of eligible areas and the exact personal-use threshold are set out in detailed federal regulations rather than in a simple general rule, an Ontario cottage or recreational property does not automatically qualify just because it fits the ordinary idea of a vacation home. Some seasonal properties in Ontario may fall inside the eligible areas and thresholds, and others may not, depending on precisely where they sit and how they are used.

Confirm both the location eligibility and the personal-use requirement against current federal guidance before assuming a specific property qualifies for this exemption.