Vacancy and speculation taxes in Canada
Some governments tax homes that sit empty or are held by owners who do not pay tax in the area, to push more homes onto the rental or sales market. Most require every owner to declare each year, even when no tax is owed. Rates and exemptions are set by each government and change often; each page shows the year a rule applies to and links to the official declaration.
| Tax | Where | Status |
|---|---|---|
| B.C. speculation and vacancy tax | British Columbia, provincial | In force. For the 2026 tax year the rates are 3% and 1%; the foreign-owner rate rises to 4% from January 1, 2027. |
| Hamilton Vacant Unit Tax | Ontario, municipal | In force. The 2025 occupancy year was billed in June 2026 at 1% of current assessed value. The City's Vacant Unit Tax page (modified July 15, 2026) had not published dates or a rate for the 2026 occupancy year when checked on October 28, 2026. |
| Ottawa Vacant Unit Tax | Ontario, municipal | In force under By-law No. 2022-135, as amended. The rate starts at 1% of taxable assessed value and rises 1% for each consecutive vacant occupancy year, to a maximum of 5%. |
| Sault Ste. Marie Vacant Home Tax | Ontario, municipal | In force under By-law 2024-168, passed December 2, 2024 (office consolidation January 12, 2026, including amendments by By-law 2026-6). The by-law sets the rate at 4% "for 2024 and future years". |
| Toronto Vacant Home Tax | Ontario, municipal | In force. 3% of Current Value Assessment since the 2024 taxation year; 2025 bills were issued in June 2026 and are payable in three instalments from September to November 2026. |
| Vancouver Empty Homes Tax | British Columbia, municipal | In force. The 2025 reference year was taxed at 3% of assessed taxable value; the City had not published a rate for the 2026 reference year on its Empty Homes Tax page as of its October 17, 2026 version. |
| Windsor Vacant Home Tax | Ontario, municipal | In force. By-law 52-2026, passed March 30, 2026, raised the rate to 4% of MPAC assessed value for 2026 and future years, up from 3% for 2024 and 2025. |
| Underused Housing Tax (UHT) | Canada (federal) | Eliminated for 2025 and later calendar years. Under the Budget 2025 Implementation Act, No. 1 (S.C. 2026, c. 3, Royal Assent March 26, 2026), no tax is payable and no return is required for 2025 and subsequent years. Returns and payments for 2022, 2023 and 2024 are still required. |
Summaries
B.C. speculation and vacancy tax
The speculation and vacancy tax is an annual provincial tax on residential property in designated areas of B.C., based on how each owner used the property during the year and on the owner's residency and income. Every owner on title in a taxable area must declare by March 31, even when an exemption applies.
Hamilton Vacant Unit Tax
Hamilton's Vacant Unit Tax (VUT) is an annual City tax of 1% of a property's current assessed value on a residential unit that was vacant for more than 183 days in the previous calendar year. Every owner of a residential property must file an occupancy declaration each year, including for a principal residence.
Ottawa Vacant Unit Tax
Ottawa's Vacant Unit Tax is an annual City tax on residential units that were unoccupied for more than 184 days in the previous calendar year. Owners of eligible residential properties must declare each year by the interim property tax due date, which was March 19, 2026 for the 2025 occupancy year.
Sault Ste. Marie Vacant Home Tax
Sault Ste. Marie's Vacant Home Tax (VHT) is a City tax of 4% of MPAC assessed value on a residential unit not occupied for more than 183 days in a taxation year that has no exemption. The program is complaint-based: owners declare when the City sends them a form, and owners of vacant homes can self-declare.
Toronto Vacant Home Tax
Toronto's Vacant Home Tax is an annual City tax of 3% of a property's Current Value Assessment on residential properties that were vacant for six months or more in a year. Owners must declare each property's occupancy status every year by April 30, even if they live there.
Underused Housing Tax (UHT)
The Underused Housing Tax was an annual federal 1% tax on the ownership of vacant or underused housing in Canada, mainly paid by foreign national owners, from January 1, 2022. Parliament ended it for 2025 and later years on March 26, 2026, but filing and payment obligations for 2022 to 2024 remain.
Vancouver Empty Homes Tax
Vancouver's Empty Homes Tax, also called the Vacancy Tax, is an annual City tax of 3% of assessed taxable value on residential property that is declared, deemed or determined empty for a reference year. Every residential property needs one status declaration each year, including homes the owner lives in.
Windsor Vacant Home Tax
Windsor's Vacant Home Tax (VHT) is a City tax of 4% of MPAC assessed value, for 2026 and later years, on a residential property that was unoccupied for more than 183 days in the taxation year. Windsor does not require every owner to declare; only owners whose unit was not their principal residence and was vacant for more than 183 days, and owners the City contacts, must file.