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.
| Applies to | Who | Rate | Source |
|---|---|---|---|
| 2024 and future years | Residential unit not occupied for more than 183 days in the taxation year, or deemed vacant, with no exemption | 4% of the current value assessment (CVA) as determined by MPAC | 2, 1 |
Declaration deadline: There is no annual filing date for all owners. An owner who receives a Declaration of Occupancy Status Form in the mail must return it to the City Tax Office within 30 days; the by-law calls this the Declaration Due Date stated on the City's request. The City states the property "will be deemed vacant if the form is not returned."
How the sault ste. marie vacant home tax works
City Council passed the Vacant Home Tax By-law, By-law 2024-168, on December 2, 2024. The City states that revenue "will support local Community Housing Initiatives." Before passing the by-law, Council had resolved on April 29, 2024 that a vacant property tax "be implemented in 2025 for 2024 vacancies."
The by-law defines a vacant home as "any Residential Unit not Occupied for more than 183 days in any Taxation Year", where the taxation year is the calendar year. A unit is occupied if it was the principal residence, for at least 183 days, of an owner or of a tenant under a lease of no less than 183 days. "Owner" includes the registered owner's family members. Principal residence means "a person's legal/official place of residence regardless of how many days they were physically present at the property."
The City describes the program as complaint-based. Anyone can send a tip. Owners the City contacts must return a declaration form.
The tax equals the property's current value assessment from MPAC multiplied by 4%. The City's example: a vacant property assessed at $150,000 "would be subject to a VHT of $6,000 ($150,000 * 4%) in addition to the annual property tax." The by-law says the tax "shall not be prorated". It is added to the Sault Ste. Marie property tax account.
Where it applies
Units in the residential property class across the City of Sault Ste. Marie. Multi-residential properties of more than 6 units, properties MPAC classifies as seasonal (property codes 363, 364, 385, 391, 392 and 395), and not-for-profit or social housing units are exempt.
Exemptions
Official rules; the administering government decides
Section 5 of By-law 2024-168 (as consolidated January 12, 2026) states that the tax does not apply to:
- occupied residential units; - a unit undergoing major repairs or renovations that prevent occupation for at least 183 days, with permits issued and work "actively and diligently carried out". This "can only be claimed for one taxation year within every five consecutive taxation years"; - a unit that changed ownership through an arm's length transaction, for that taxation year; - a unit not occupied for up to two years after the registered owner was admitted to care; - a unit whose owner died, for up to 24 months beginning the month after death, if it was occupied at the time of death; - a unit "used exclusively as a Short-Term Rental if registered with the City" under its short-term rental licensing by-law and occupied at least 100 days in the year; - seasonal properties; - a unit under a court order preventing occupancy; - multi-residential properties (more than 6 units); - not-for-profit and social housing units; and - newly built units not yet on the assessment roll for a full calendar year and continuously listed for sale or lease.
Declaring
The City states that an owner of a residential property vacant for more than 183 days in the taxation year must fill out the declaration and submit it to the City of Sault Ste. Marie Tax Office, and that owners of vacant property can self-declare to avoid potential penalties. A form is required for each residential unit. Tips about vacant homes go to [email protected], 705-759-5290, or the online form on the City's VHT page.
Payment
VHT Tax Notices "will be mailed and payable within 90 days of the date of the VHT Tax Notice." The by-law adds the tax to the property tax account, payable "in one instalment on the Payment Due Date", and it is payable by that date "regardless of whether a complaint or appeal from the VHT is made or taken." Interest at 15% per year, calculated at 1.25% monthly, is charged from the business day after the due date and on the first day of each month after that. Unpaid tax is collected in the same way as property taxes.
Penalties, complaints and appeals
The by-law prohibits false declarations and fraudulent documents. A person who breaks that rule "may be subject to a minimum penalty of $500, but not a penalty more than $10,000.00." After a conviction, the Treasurer may assess or reassess the tax for any period the Treasurer considers reasonable.
To dispute a VHT Tax Notice, an owner files a Notice of Complaint form, with supporting documents, with the City's Taxation Department within 30 days of the date on the notice. The results come in a VHT Audit Determination Notice. Within 30 days of the date of that notice, the owner can file a Request for Review with the Treasurer, "whose decision shall be final."
Recent and announced changes
Council asked its Affordable Housing Task Force to study a vacant property tax on March 20, 2023, approved implementation "in 2025 for 2024 vacancies" on April 29, 2024, and passed By-law 2024-168 on December 2, 2024. The by-law relies on the March 27, 2024 amendment to O. Reg. 458/22, which let every single-tier municipality in Ontario impose a vacant home tax. By-law 2026-6 added a definition of "Major Repairs or Renovations", rewrote the renovation exemption (one year in every five, with documents), and deleted the exemption for units the Chief Building Official judged "otherwise uninhabitable for reasons beyond the Owner's control". The City's office consolidation including these changes is dated January 12, 2026.
Property tax in Sault Ste. Marie
Sault Ste. Marie Vacant Home Tax: common questions
What is the Vacant Home Tax rate in Sault Ste. Marie?
By-law 2024-168 sets the rate at 4% "for 2024 and future years", applied to the property's current value assessment from MPAC. The City's example is a vacant property assessed at $150,000, which would owe a $6,000 Vacant Home Tax on top of the annual property tax. The tax is not prorated for any part of the year the unit was occupied.
Do all Sault Ste. Marie homeowners have to declare?
No. The City uses a complaint-based process. Owners who receive a Declaration of Occupancy Status Form in the mail must return it within 30 days, or the property will be deemed vacant. The City also states that an owner whose residential property was vacant for more than 183 days in the taxation year must submit a declaration, and that vacant-home owners can self-declare.
Are cottages and seasonal properties taxed?
No. The by-law exempts property "classified as seasonal", including properties MPAC classifies under property codes 363, 364, 385, 391, 392 and 395. Multi-residential properties of more than 6 units and not-for-profit or social housing are also exempt. A registered short-term rental occupied at least 100 days in the year is exempt under section 5(g) of the by-law.
Is a house under renovation exempt?
The by-law exempts a unit under major repairs or renovations that prevent occupation for at least 183 days, where all required building permits were issued by the City and the work is actively carried out. Since the 2026 amendment, this exemption can be claimed for only one taxation year in every five, and owners must provide documents such as permits, photos, inspection reports or contractor invoices.
How is a Sault Ste. Marie VHT notice disputed?
The owner files a Notice of Complaint form, with supporting documents, with the City's Taxation Department within 30 days of the date on the VHT Tax Notice. The City replies with a VHT Audit Determination Notice. Within 30 days of that notice, the owner can file a Request for Review with the Treasurer, whose decision is final. The tax is still due by the payment date during an appeal.
Sources
Checked a second time against these sources on October 28, 2026
- Vacant Home Tax, City of Sault Ste. MarieApplies to Current program (By-law 2024-168, 2024 and future years) · checked October 28, 2026 · copy archived
- By-law 2024-168, Municipal Vacant Home Tax (office consolidation January 12, 2026, amended by By-law 2026-6), City of Sault Ste. Marie, Legal DepartmentApplies to 2024 and future taxation years · checked October 28, 2026 · copy archived
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