Hamilton Vacant Unit Tax

The City of Hamilton describes the Vacant Unit Tax as "an annual tax payable by the owner of a residential unit that has been vacant for more than 183 days in the previous calendar year." The City states that revenues, after administrative costs are recovered, "will be reinvested into affordable housing initiatives."

The tax works on a look-back basis. Owners declare the occupancy status of each unit for the previous year, and the City bills the tax the following June. The City states: "The second year the Vacant Unit Tax will be payable is 2026, based on the status of the property in 2025."

The tax applies to properties classified as residential, "such as single-family detached, townhouses, row homes, duplex, triplex, etc." The City uses the MPAC property code to count the units in a property, so a duplex has two units to declare. It does not apply to vacant land.

A principal residence is not subject to the tax, but its owner still has to declare. A unit with no declaration is considered vacant. The City gives this example: a $3,850 Vacant Unit Tax on a residential unit with an assessed value of $385,000. The tax is added to the tax roll and collected the same way as property taxes in Hamilton.

All of the City of Hamilton. The City's April 2024 news release says the declaration applies to "all properties that are classified as residential (that contain six units or less) and have a property code that is eligible as defined in the by-law." Accessory units such as "granny suites" inside a residential property do not need a declaration, and vacant land or undeveloped subdivided lots are not taxed.

The City lists these exemptions for a unit left vacant:

Principal residence: "the residential unit is the principal residence of the owner."

Death of an owner: "the exemption applies to the year of death, plus one subsequent year only." The City's April 15, 2026 update to Council adds "or, until a certificate of appointment of estate trustee has been issued", provided an application for the certificate has been made to the court.

Major renovations: renovations or redevelopment "make occupation of a unit impossible for more than 183 days in the same calendar year, provided a building permit has been issued."

Sale of the property: the tax "will not apply in the year of the sale if the transfer is to an unrelated individual or corporation."

Principal resident in care, institutionalized or hospitalized, court order prohibiting occupancy, and non-profit housing owned and operated by non-profit corporations.

Uninhabitable/hazardous property: limited to "two consecutive years", with an inspection by a licensed professional or a City official.

Model homes used exclusively for sales and marketing, and unsold new inventory held by developers for up to six months after the occupancy permit.

One declaration per residential property, giving the status of each unit, by the owner or someone authorized on the owner's behalf. Owners need the roll number and access code from the Notice to Declare letter or their latest property tax bill. Declarations can be made online at my.hamilton.ca, by phone at 905-546-2573, by email, by mail to Vacant Unit Tax, 71 Main Street West, Hamilton, ON L8P 4Y5, or in person at a Municipal Service Centre.

For the 2025 occupancy year, the City mailed Vacant Unit Tax bills in the first week of June 2026. Its April 15, 2026 update to Council lists June 30, 2026 as the first payment due date and September 30, 2026 as the "Second and final Vacant Unit Tax payment" due date. Owners on a pre-authorized payment plan can ask to have the tax included in their scheduled payments. The City lists a penalty of 1.25% on the first day of default, plus 1.25% interest per month.

The City lists a Non-Declaration Fee of $250 and a Late Appeal Fee of $500. It states that owners "may be subject to a fine up to $10,000 for providing false information with the intent to evade the Vacant Unit Tax charge." Other offences are set in the Vacant Unit Tax by-law.

The City audits declarations every year, including by random selection, after complaints or tips, and for properties that report an exemption.

An owner who is billed can file a first appeal. For the 2025 occupancy year, the appeal period opened June 15, 2026, and the City's page gives a deadline of October 7, 2026, "or 120 days from the billing date listed on your Vacant Unit Tax bill." A completed occupancy declaration is needed to appeal. If the first appeal is denied, a second appeal can be filed within 60 days; "Second appeal decisions are final." For the 2024 taxation year, late appeals with the $500 fee are accepted until December 31, 2026.

Council approved the Vacant Unit Tax program in June 2022. The City's April 24, 2024 news release announced the by-law, with the tax charged beginning in 2025 on vacancy in 2024. The City's page cites By-Law No. 25-201, "a By-Law to Establish a Vacant Unit Tax", and lists an October 22, 2025 report titled "2024 Interim Report and 2025 ByLaw". For the 2025 occupancy year, the declaration deadline was extended from April 15 to May 15, 2026. In its "Vacant Unit Tax 2024 Reporting", the City reports that 97.8% of eligible properties submitted declarations and that the vacancy rate, including declared and deemed vacant units, was 2.5%.