Vacant Home Tax in Ontario: Cities, Declarations, and Exemptions

The vacant home tax in Ontario is a municipal levy charged by Toronto, Ottawa, and Hamilton on residential properties left empty for more than six months of the year. Rates range from 1% to 5% of the property’s assessed value depending on the city and how long the home has stayed unoccupied. It applies whether you live in Ontario or abroad, and it can hit you even if your home was actually occupied, because every owner must file an annual declaration and silence is treated as vacancy.

Which Cities Charge It and How Much

Only some Ontario municipalities have adopted the tax. Each sets its own rate, exemptions, and deadlines. The tax is calculated against the property’s Current Value Assessment (CVA) from the Municipal Property Assessment Corporation, not the current market price. Ontario assessments for the 2026 tax year are still based on January 1, 2016 values, so the assessed figure is often well below what the home would sell for today.¹

Toronto charges 3% of CVA. The rate began at 1% in 2022 and rose to 3% starting with the 2024 tax year.²
Hamilton charges 1% of CVA.³
Ottawa uses an escalating rate that climbs one percentage point for each consecutive year the property stays vacant, capped at 5%.⁴

On a home assessed at $800,000, a Toronto owner would owe $24,000 a year. A Hamilton owner would owe $8,000. In Ottawa, a third consecutive vacant year would produce a 3% rate, or $24,000 on the same assessment.

The tax targets residential property, generally buildings with six or fewer units, including detached houses, semis, and condominiums. Multi-residential buildings (roughly seven units or more), commercial, and industrial properties are outside the tax and don’t file declarations.⁵

What Counts as Vacant

A property is vacant if no one used it as their principal residence for at least six months of the taxation year. Toronto’s Chapter 778 defines a vacant unit as one where no self-contained unit served as the owner’s or an occupant’s principal residence, and no tenant occupied it for an aggregate of at least six months.² Ottawa sets its threshold at 184 days.⁶

Renting the property out doesn’t automatically satisfy the requirement. In Toronto, a tenant needs a written agreement with a term of at least 30 days, and total occupancy has to add up to six months or more during the year. A family member or friend who stays there must live at the property as their principal residence for at least six months. Weekend visits and occasional use don’t count.⁵

If your property has a single assessment roll number that covers a duplex or triplex, the city treats it as one property. You can declare it occupied if at least one unit was lived in for six months or more.⁵

The Annual Declaration You Cannot Skip

Every residential owner in a participating city must file an annual occupancy declaration, even when the home was lived in the whole year. This is where most owners get caught. The city has no way of knowing your home is occupied unless you tell them, and if you don’t file, the property is deemed vacant and you get a full tax bill.⁵

Toronto’s deadline to declare 2025 occupancy is April 30, 2026.⁵ Ottawa’s deadline for 2024 occupancy was March 19, 2025.⁴ Check your city’s website each year, since the date shifts.

To file, you’ll need your property tax bill. The declaration portal asks for your customer number and either your property address or your 21-digit assessment roll number, both of which appear on the tax bill, account statement, or any previous vacant home tax notice. Anyone filing on your behalf needs written authorization and their own contact details. Save the confirmation receipt in case the city audits you later.⁵

Exemptions That Waive the Tax

A home can sit empty without triggering the tax if it fits a recognized exemption. You still have to declare, and you still have to provide supporting documentation. Toronto currently recognizes the following:⁵

Death of a registered owner during the tax year or the two preceding years, for up to three consecutive years.
The principal resident is in a hospital, long-term care, or supportive care facility for at least six months, for up to two consecutive years.
Major repairs or renovations make the home uninhabitable for at least six months, with permits issued and work progressing without unnecessary delay.
A full 100% transfer of legal ownership during the year. Adding or removing a co-owner’s name doesn’t qualify.
The owner or spouse works full-time in Toronto for at least six months and keeps a principal residence outside the Greater Toronto Area.
A court order prohibits occupancy for at least six months of the year.
Vacant new construction built by a developer, never occupied, and actively listed for sale during the year, for up to two consecutive years.
A secondary residence needed by the owner, spouse, or dependent for medical reasons, where the principal residence is outside the GTA.

Ottawa recognizes several of these and adds a few unique to its rules, including one for cottage rentals in rural areas with a valid host permit rented at least 100 days per year, and one for uninhabitable structures on rural parcels of three or more acres.⁶ Toronto specifically warns owners not to include personal medical documents or photographs when submitting exemption evidence.

Penalties for Missing the Deadline or Filing Falsely

Miss the declaration deadline and the city automatically deems your property vacant and bills you for the full amount. This is the most common way owners get an unexpected tax bill. Owners of occupied properties who simply forgot to declare still receive the bill and have to work through the dispute process to reverse it.⁵

Filing a false declaration is a separate offense. In Toronto, a false declaration or a failure to provide information when the city asks for it can carry a fine of up to $10,000 on top of the tax. Any unpaid balance accrues interest at 1.25% on the first day of default and on the first day of each month it remains outstanding.⁵

Disputing a Bill You Think Is Wrong

If you get a bill you believe is incorrect, file a Notice of Complaint through the city’s online portal. In Toronto, valid grounds include that the property was actually occupied, that it qualifies for an exemption you didn’t claim, or that the assessed value has changed. If the bill came from an audit, you have 90 days from the date on the supplementary assessment notice to file.⁵

After you file, the city may ask for supporting documents. You have 60 days from the date of that request to upload evidence through the secure portal. If the complaint is rejected, you can appeal within 90 days. An Appellate Authority reviews the file within 90 days and issues a written decision within 30 days of finishing that review. The appeal decision is final.⁵

Buying or Selling a Home With Vacant Home Tax on the Roll

The tax attaches to the property, not the person. Any unpaid balance is added to the property tax roll and forms a lien on the home. Buy a property with outstanding vacant home tax and you inherit the liability.⁵

Before closing, buyers and their lawyers should verify the vacant home tax status. Toronto’s Property Tax Lookup includes a Vacant Home Tax section that shows any outstanding obligations. If you’re selling, file every outstanding declaration and clear any balance before listing so nothing derails your closing.⁵

1
Municipal Property Assessment Corporation. Notices and Notifications
2
City of Toronto. Toronto Municipal Code Chapter 778 – Taxation, Vacant Home Tax
3
City of Hamilton. Vacant Unit Tax
4
City of Ottawa. Complete Your Vacant Unit Tax Declaration Before March 19
5
City of Toronto. Vacant Home Tax
6
City of Ottawa. Exemptions – Understanding the Vacant Unit Tax