Several cities and British Columbia tax homes that sit empty, to push them back into use as housing. The taxes are a share of the assessed value, and most require every owner to declare each year, even when no tax is due.
Toronto
The Vacant Home Tax is 3% of the assessed value. Every residential owner must declare; the declaration for 2025 was due April 30, 2026. A home that is not declared can be deemed vacant, and a false declaration can bring a fine of up to $10,000. Source: City of Toronto.
Vancouver and the rest of British Columbia
Vancouver’s Empty Homes Tax is 3% of the assessed value; the declaration for 2025 was due February 3, 2026. Source: City of Vancouver.
The provincial Speculation and Vacancy Tax applies in Metro Vancouver, the Capital Regional District and a list of other municipalities, including Kelowna, Kamloops, Nanaimo and Squamish. From the 2026 tax year it is 1% for Canadian citizens and permanent residents, and 3% (4% from 2027) for foreign owners and untaxed worldwide earners. Declarations are due March 31; a principal residence or a home rented for at least six months is usually exempt. Source: Government of British Columbia. A Vancouver home can owe both taxes.
Ottawa, Hamilton and other Ontario cities
Ottawa’s Vacant Unit Tax is 1% for the first year a home is vacant for more than 184 days, rising one point for each further year in a row to 5%; every owner must declare. Source: City of Ottawa. Hamilton charges 1% (City of Hamilton). Windsor (4% from 2026), Sault Ste. Marie (4%) and Guelph (4% from January 1, 2026) ask owners to declare when the city contacts them.
The federal Underused Housing Tax has ended
The federal 1% Underused Housing Tax no longer applies for 2025 and later years; returns for 2022 to 2024 are still due where they were required. Source: Underused Housing Tax Act.
Common exemptions
- The home is the owner’s principal residence, or a relative’s or friend’s.
- It is rented to a tenant for at least six months of the year.
- Major renovations with a permit, a recent sale, the owner’s death, or the owner in care.
Check the exact list and the declaration date with your city each year. Estimate the cost with the vacant home tax calculator, or compare renting the home in the short-term rental calculator.
Try the vacant home tax calculator →
Official source
City of Toronto · Vacant Home Tax
This guide explains general rules. Confirm your figures with your lender, lawyer, or the official source before you act.