Ottawa Vacant Unit Tax

The City of Ottawa imposes the Vacant Unit Tax (VUT) under By-law No. 2022-135, using powers in Part IX.1 of the Municipal Act, 2001. The City states that the tax "will encourage homeowners to maintain, occupy or rent their properties, thereby increasing the housing supply," and that net revenue goes to affordable housing.

The by-law treats a unit as vacant if "it was unoccupied for more than the aggregate of 184 days during the previous calendar year, was not the Principal Residence of an Occupier, and was unoccupied for more than the aggregate of 184 days for residential purposes by a Tenant under a Tenancy Agreement" or a subtenant. Tenancy and sublease agreements must have a term of at least 30 consecutive days.

Each year, owners declare the status of the previous calendar year (the occupancy year). One declaration is needed per property tax roll number, covering every unit on the roll; co-owners submit only one. A unit that is vacant without an exemption, or deemed vacant because no declaration was received by April 30, is charged the tax on the final property tax bill in June.

The tax is a percentage of the MPAC assessed value for the current tax year. Where several units share one assessment, the tax is prorated by the share of units that were vacant.

Residential property in the City of Ottawa. The City's FAQ says the tax applies to "All properties that are classified as Residential (RT class) that contain six units or less and that have a property code that is eligible as defined in the by-law (Schedule 'A')." It does not apply to vacant land or to lots that have been subdivided but not developed. Accessory ("granny") suites do not need a separate declaration.

The City lists exemptions for a property vacant for at least 184 days in the previous year:

- In case of sale: a 100% transfer of an interest in the property to an unrelated individual or corporation in the previous year. - Court or government order prohibiting occupancy (not where occupancy is prevented by the owner's neglect). - In case of death: "only available in the year of death and the subsequent year." - Owner in care: the occupant was in a hospital, long-term or supportive care facility for at least 184 days. - Construction or renovation with building permits issued, significant enough that the property cannot be occupied for at least 184 days. - Combination of tenancy and construction or renovation totalling at least 184 days. - Cottage rental in a rural zone, with a valid host permit, rented for at least 100 days according to the City's exemptions page; the by-law requires that the unit "was rented for more than 100 days with proof of revenue." - Newly built unit continuously listed for sale or lease in its first year on the tax roll.

The by-law also covers an uninhabitable rural structure on a parcel of at least three acres, a hazardous condition (maximum two consecutive occupancy years) and a unit used to receive or support medical treatment.

Online with the property tax roll number and access code, or through a My ServiceOttawa account; by phone at 613-580-2444; or in person at Revenue Services (100 Constellation Drive) or a City client service centre. One declaration per roll number, listing the status of each unit.

The Vacant Unit Tax is added to the final property tax bill. The 2026 final bills were mailed from May 14 to May 21, 2026, with a due date of Thursday, June 18, 2026. For owners on a monthly pre-authorized debit plan, the City says the VUT is added to the remaining balance and spread over the July to October payments. The City advises owners whose mortgage institution pays their property tax to check whether the institution will also pay the VUT.

A declaration not submitted by the due date results in a $250 fee added to the tax roll. Unpaid VUT is subject to the same penalties as property taxes, including 1.25% interest added on the 1st of every month and the tax sale process, and it forms a lien on the property. The by-law sets a fine on conviction of not less than $500.00 and not more than $10,000.00 for each offence.

Under the by-law, an owner charged the tax on the final bill can file a Notice of Complaint on or before September 15 of the year the tax is due; after an audit, within 90 days of the VUT Audit Determination Notice. A late Notice of Complaint, with a fee, can be filed until December 31 of the following year. A determination on a complaint can be taken to the Deputy City Treasurer, Revenue Services, by a Request for Review within 60 days of the date the determination is mailed; that decision is final.

By-law 2022-135 has been amended by By-laws 2023-028, 2023-545, 2024-532 and 2024-564. Schedule B now sets an escalating rate from the 2024 occupancy year: 1% for a first vacant year, rising 1% per consecutive vacant occupancy year to a maximum of 5%. The City's VUT FAQ page still describes "a tax rate of 1% of a property's assessed value" without the escalation; the by-law text is the legal rule.