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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.

CityYear StartedCurrent RateDeclaration Required
Vancouver20175%Yes
Toronto20223%Yes
Ottawa20231%Yes

Toronto Vacant Home Tax

Tax Rate

YearRate
20221%
20231%
20243%
20253%
20263%

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”

StatusVacant?
Owner-occupied all yearNo
Rented 6+ monthsNo
Rented less than 6 monthsYes
Empty all yearYes
Used as storageYes
Occasional use (weekends)Yes

Declaration Deadline

Tax YearDeclaration Due
2025February 2026
2026February 2027

Late declarations result in automatic vacant status and full tax.

Tax Calculation Example

Property ValueTax RateAnnual Tax
$500,0003%$15,000
$1,000,0003%$30,000
$1,500,0003%$45,000
$2,000,0003%$60,000

Toronto VHT Exemptions

ExemptionDetails
Death of ownerProperty of deceased within 2 years
Medical careOwner in hospital/care facility
RenovationsActive permits, uninhabitable
Legal proceedingsCourt-ordered vacancy
Transfer of ownershipSale in progress
Occupancy restrictedLegal prohibition
Principal residence of ownerFull year
Tenant occupied6+ months

Vancouver Empty Homes Tax (EHT)

Vancouver pioneered the vacant home tax in Canada in 2017.

Tax Rate

YearRate
20171%
20181%
20191%
20201.25%
20213%
20223%
20235%
20245%
2025–20265%

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 YearDeclaration Due
2025February 2026
2026February 2027

Tax Calculation Example

Property ValueTax RateAnnual Tax
$1,000,0005%$50,000
$2,000,0005%$100,000
$3,000,0005%$150,000
$5,000,0005%$250,000

Vancouver EHT Exemptions

ExemptionDetails
Limited-use residentialStrata-restricted rentals
RedevelopmentActive permits
Deceased ownerEstate property
Medical reasonsCare facility
Rental restrictionsStrata bylaws
Heritage propertyDesignated heritage
Principal residence6+ months

Ottawa Vacant Unit Tax (VUT)

Tax Rate

YearRate
20231%
20241%
20251%
20261%

Who Must Declare

All residential property owners in Ottawa must declare annually.

Declaration Deadline

Tax YearDeclaration Due
2025March 2026
2026March 2027

Ottawa’s deadline is slightly later than Toronto and Vancouver.

Tax Calculation Example

Property ValueTax RateAnnual Tax
$500,0001%$5,000
$750,0001%$7,500
$1,000,0001%$10,000
$1,500,0001%$15,000

Ottawa VUT Exemptions

ExemptionDetails
Principal residenceOwner-occupied 6+ months
RentedTenant occupancy 6+ months
New ownershipPurchased during tax year
Death of ownerWithin 2 years
RenovationsMajor construction
Court orderOccupancy prohibited
Property for saleListed for 6+ months

Comparison: Toronto vs Vancouver vs Ottawa

FeatureTorontoVancouverOttawa
Rate3%5%1%
Start year202220172023
Declaration deadlineFebruaryFebruaryMarch
Penalty for non-declarationDeemed vacantDeemed vacantDeemed vacant
Minimum occupancy6 months6 months6 months

Tax on $1M Property

CityAnnual Tax
Vancouver$50,000
Toronto$30,000
Ottawa$10,000

How to File Your Declaration

Toronto

  1. Visit Toronto’s property tax portal
  2. Log in with your property roll number
  3. Complete the declaration form
  4. Submit before the February deadline

Vancouver

  1. Visit Vancouver’s Empty Homes Tax portal
  2. Log in with your folio number
  3. Complete the declaration
  4. Submit before the February deadline

Ottawa

  1. Visit Ottawa’s Vacant Unit Tax portal
  2. Log in with your property roll number
  3. Complete the declaration
  4. Submit before the March deadline

Penalties for Non-Compliance

Failure to Declare

CityConsequence
TorontoProperty deemed vacant, full 3% tax
VancouverProperty deemed vacant, full 5% tax
OttawaProperty deemed vacant, full 1% tax

Late Declaration

CityPenalty
Toronto$250 fine + deemed vacant
Vancouver$250 fine + deemed vacant
OttawaAdministrative fees

False Declaration

ConsequencePenalty
FineUp to $10,000
Back taxesFull vacant tax + interest
AuditMunicipality may audit

How to Avoid Vacant Home Tax

Option 1: Owner Occupancy

  • Live in the property as your principal residence
  • Must occupy for 6+ months of the year
  • Register your address with CRA

Option 2: Rent the Property

Rental TypeRequirements
Long-term rental6+ months occupancy
Short-term rentalMay still be “vacant”
AirbnbOften does NOT qualify

Option 3: Claim Exemption

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

CityStatus
HamiltonUnder consideration
LondonUnder consideration
HalifaxUnder consideration
CalgaryProposed
Regional municipalitiesVarious

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

DateEvent
JanuaryDeclaration period opens
FebruaryToronto/Vancouver deadline
MarchOttawa deadline
May–JuneTax notices issued
July–AugustPayment due

Record-Keeping Tips

DocumentKeep For
Lease agreements7 years
Renovation permits7 years
Medical documentation7 years
Declaration confirmations7 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”
  • Keep records to prove occupancy or exemptions

→ Back to: Complete Canadian Tax Guide