Vacant Home Tax in Canada: Toronto, Vancouver, and Ottawa (2026)
Updated
What Is Vacant Home Tax?
Vacant home tax (VHT) is a municipal tax on residential properties that sit empty or underutilized. The goal is to increase housing supply by encouraging owners to rent or sell vacant properties.
City
Year Started
Current Rate
Declaration Required
Vancouver
2017
5%
Yes
Toronto
2022
3%
Yes
Ottawa
2023
1%
Yes
Toronto Vacant Home Tax
Tax Rate
Year
Rate
2022
1%
2023
1%
2024
3%
2025
3%
2026
3%
Who Must Declare
All residential property owners in Toronto must submit an annual declaration, even if:
You live in the property
The property is rented
You’ve owned it for less than a year
What Counts as “Vacant”
Status
Vacant?
Owner-occupied all year
No
Rented 6+ months
No
Rented less than 6 months
Yes
Empty all year
Yes
Used as storage
Yes
Occasional use (weekends)
Yes
Declaration Deadline
Tax Year
Declaration Due
2025
February 2026
2026
February 2027
Late declarations result in automatic vacant status and full tax.
Tax Calculation Example
Property Value
Tax Rate
Annual Tax
$500,000
3%
$15,000
$1,000,000
3%
$30,000
$1,500,000
3%
$45,000
$2,000,000
3%
$60,000
Toronto VHT Exemptions
Exemption
Details
Death of owner
Property of deceased within 2 years
Medical care
Owner in hospital/care facility
Renovations
Active permits, uninhabitable
Legal proceedings
Court-ordered vacancy
Transfer of ownership
Sale in progress
Occupancy restricted
Legal prohibition
Principal residence of owner
Full year
Tenant occupied
6+ months
Vancouver Empty Homes Tax (EHT)
Vancouver pioneered the vacant home tax in Canada in 2017.
Tax Rate
Year
Rate
2017
1%
2018
1%
2019
1%
2020
1.25%
2021
3%
2022
3%
2023
5%
2024
5%
2025–2026
5%
Who Must Declare
All residential property owners in Vancouver must declare annually.
What Counts as “Empty”
A property is empty if not:
Principal residence of owner for 6+ months
Rented 6+ months minimum in 30-day periods
Occupied by permitted occupier (family member)
Declaration Deadline
Tax Year
Declaration Due
2025
February 2026
2026
February 2027
Tax Calculation Example
Property Value
Tax Rate
Annual Tax
$1,000,000
5%
$50,000
$2,000,000
5%
$100,000
$3,000,000
5%
$150,000
$5,000,000
5%
$250,000
Vancouver EHT Exemptions
Exemption
Details
Limited-use residential
Strata-restricted rentals
Redevelopment
Active permits
Deceased owner
Estate property
Medical reasons
Care facility
Rental restrictions
Strata bylaws
Heritage property
Designated heritage
Principal residence
6+ months
Ottawa Vacant Unit Tax (VUT)
Tax Rate
Year
Rate
2023
1%
2024
1%
2025
1%
2026
1%
Who Must Declare
All residential property owners in Ottawa must declare annually.
Declaration Deadline
Tax Year
Declaration Due
2025
March 2026
2026
March 2027
Ottawa’s deadline is slightly later than Toronto and Vancouver.
If you qualify for an exemption (renovation, medical, death), declare promptly with supporting documentation.
Option 4: Sell the Property
Selling the property removes the vacant home tax obligation. Some cities have exemptions for properties actively listed for sale.
Other Cities Considering Vacant Home Tax
City
Status
Hamilton
Under consideration
London
Under consideration
Halifax
Under consideration
Calgary
Proposed
Regional municipalities
Various
BC Speculation and Vacancy Tax
Note: BC also has a provincial Speculation and Vacancy Tax that applies across most urban areas of BC, separate from Vancouver’s municipal Empty Homes Tax. See our BC Speculation and Vacancy Tax guide for details.
If you own property in Vancouver, you may owe both taxes:
Vancouver Empty Homes Tax (municipal)
BC Speculation and Vacancy Tax (provincial)
Key Tax Dates
2026 Calendar
Date
Event
January
Declaration period opens
February
Toronto/Vancouver deadline
March
Ottawa deadline
May–June
Tax notices issued
July–August
Payment due
Record-Keeping Tips
Document
Keep For
Lease agreements
7 years
Renovation permits
7 years
Medical documentation
7 years
Declaration confirmations
7 years
Utility bills (proof of occupancy)
3 years
Key Takeaways
All owners must declare annually, even if property is occupied
Vancouver has the highest rate at 5%
Toronto charges 3%, Ottawa charges 1%
Properties occupied 6+ months avoid the tax
Failure to declare = automatic vacant status + full tax
Short-term rentals often don’t qualify as “occupied”