2025 vacant home taxes across Canada
Vinay Khosla
Canada
by Vinay Khosla
In response to escalating residential real estate prices, various Canadian municipalities, alongside the federal government and the British Columbia provincial government, have implemented vacant residential property taxes. These measures aim to increase housing availability by discouraging property vacancies. This article provides a brief overview of these taxes as of early 2025.
Federal Underused Housing Tax (UHT)
The federal government introduced the Underused Housing Tax (UHT) effective 01 January 2022. This annual 1% tax targets foreign nationals and residential real estate (owned by partnerships, trusts, and corporations held in part by foreign nationals) that remains vacant for more than half the year. The deadline for 2024 UHT filings and payments was 30 April 2025.
Toronto: Vacant Home Tax (VHT)
Implementation year: 2022
Criteria: Properties vacant for six months or more within the taxation year, with certain exceptions.
Tax rate: 3% of the property’s Current Value Assessment (increased from the initial 1%).
Declaration requirement: All homeowners must declare by 30 April using the customer number and assessment roll number from their property tax bill.
Other municipalities
The municipalities listed below have a similar structure to the Toronto Vacant Home Tax, with variations in criteria, tax rates, and declaration information.
Municipality
Since
Vacancy Criteria
Tax Rate
Declaration deadline; notes
Hamilton
2024
Vacant >183 days, ≤6 units
1%
30 April; roll number and access code required
Ottawa
2022
Vacant >184 days
1% (up to 5%)
3rd Thursday in March; late until 30 April with CAD 250 fee
Windsor
>183 days (140 days in 2024)
3%
File within 30 days of notice if applicable; primary homes exempt
Sault Ste. Marie
Vacant >183 days
4%
Must declare if applicable within 30 days of receiving a declaration form.
Vancouver
2018
Unoccupied >6 months
Declare by 02 February; folio number and access code required
British Columbia: Speculation and Vacancy Tax
In addition to the federal tax, the province of British Columbia implemented a tax at the provincial level, which covers most population centres.
Implementation year: 2018, with additional population centres added over time.
Criteria: Applies to residential properties in specified areas (most major cities), including Vancouver.
Tax rates:
0.5% for Canadian citizens or permanent residents.
2% for foreign owners and untaxed worldwide earners.
Exemptions: Several, including properties rented for more than six months.
Declaration requirement: All residential property owners in taxable areas must complete a declaration annually by 31 March. A declaration letter will provide a letter ID and declaration code required to declare.
If you have any questions concerning these vacancy taxes or other tax issues, please contact a Bateman MacKay business advisor for guidance. Subscribe to our blog and follow us on LinkedIn for additional updates on tax, accounting and business advisory matters.
XLNC member firm Bateman MacKay LLPBurlington, ON, CanadaT: +1 905 632 6400
Vinay Khosla has more than 20 years of experience in Tax Planning and Optimization, he’s a pragmatic and business-minded specialist who employs the highest level of tax knowledge. With careful attention to detail, he finds innovative, value-added solutions that ensure his clients reach their personal and professional goals. Contact Vinay.
