Vacant Home Tax

An empty house costs you in a way the mortgage never shows: several Canadian cities now tax vacant homes, and the rates are designed to hurt. This calculator computes the annual vacancy tax for an empty property from your city and its assessed value — and shows how cheap the alternatives are.

What it answers

The yearly vacant home tax for a property left empty in a covered city.
The monthly cost of vacancy, for direct comparison against the cost of finding a tenant.
Which exemptions might apply — and which ones people wrongly assume apply.

What it deliberately does not cover

It covers municipal vacancy taxes and the BC Speculation and Vacancy Tax only. It does not calculate the federal Underused Housing Tax for 2022–2024 (eliminated for 2025 onward by Bill C-15, Royal Assent 26 March 2026 — though returns and payments for 2022–2024 are still required). It cannot determine whether you qualify for an exemption; that is a legal question. Most Canadian municipalities have no vacancy tax at all.

Every input, explained

City. The calculator covers Toronto, Ottawa, Hamilton, and Vancouver, plus the BC Speculation and Vacancy Tax, which applies in 59 designated BC communities. The common error is assuming your city has no tax because you never heard of it — check the list before assuming.

Assessed value. From your assessment notice (MPAC in Ontario, BC Assessment in BC). Vacancy taxes are a percentage of assessed value, not market value. Entering the purchase price is the most frequent mistake.

Occupancy status. Principal residence, rented, or vacant. In Toronto every owner must declare occupancy status annually, occupied or not — an undeclared property can be deemed vacant and taxed as empty.

Ownership type (BC only). For the BC Speculation and Vacancy Tax the rate depends on owner type. For declarations made in 2027: foreign owners 3 percent (up from 2 percent); Canadian citizens and permanent residents 1 percent (up from 0.5 percent).

How the math works

Annual vacancy tax = assessed value × the applicable rate. Monthly = annual ÷ 12. Simple arithmetic, serious money.

Toronto's Vacant Home Tax is 3 percent of assessed value, in effect since the 2024 taxation year. The BC tax exempts most people who live in the property, rent it six or more months a year, or meet another exemption. Ottawa's and Hamilton's municipal vacancy taxes exist, but confirm the current rate with each city before relying on a figure. [VERIFY] Confirm Vancouver's Empty Homes Tax rate with the City of Vancouver the same way. [VERIFY]

Worked example

A Toronto condo assessed at $685,000 sits empty through the 2026 tax year, and the owner misses the occupancy declaration.

Toronto Vacant Home Tax: 685,000 × 0.03 = $20,550 for the year. Monthly cost of vacancy: 20,550 ÷ 12 = $1,712.50 — every month, for the privilege of owning an empty condo, before mortgage, condo fees, or property tax.

Compare with the same assessed value under the BC Speculation and Vacancy Tax in a designated community, for a declaration made in 2027. A Canadian citizen owner pays 685,000 × 0.01 = $6,850. A foreign owner pays 685,000 × 0.03 = $20,550. And if either owner rents the unit for six months or more, or lives in it, the tax is zero. The calculator's real job is making the alternatives look as cheap as they are.

Note what is gone: the federal Underused Housing Tax does not apply to 2025 and later years. Anyone who owed it for 2024 still files and pays for that year, but there is no federal vacancy tax going forward — the municipal and BC taxes are the ones that bite now.

Provincial quirks and edge cases

Toronto's 3 percent rate has applied since the 2024 taxation year. The declaration is annual and mandatory for all residential owners. Miss it and the city can deem the property vacant.
BC's tax covers 59 designated communities — not the whole province. Outside them, it does not exist. Inside them, a principal residence is exempt, as is a property rented at least six months in the calendar year.
The 2027 declaration rates (3 percent foreign, 1 percent Canadian/PR) are higher than earlier years'. Do not assume the old rate still applies if you owned a vacant BC property through the lower-rate years.
Ottawa and Hamilton both have municipal vacancy taxes; verify the current rates and exemption details directly with each city rather than relying on last year's figure. [VERIFY]
Snowbirds: wintering elsewhere does not make your home "vacant" if it remains your principal residence. But a second property sitting empty all year with no tenant is exactly what these taxes target, weekend visits or not.

Questions to ask a professional

Ask your lawyer: "My property will sit empty for part of the year — which exemptions could apply in my city, and what documentation do I need to claim one?"
Ask your accountant: "If I rent the property for six months to satisfy the BC exemption, how does the rental income and change of use affect my taxes?"
Ask your lawyer: "I missed Toronto's declaration deadline — can the vacant designation be reversed, and what are my options?"
Ask your tax pro: "I have outstanding Underused Housing Tax filings for 2022 to 2024 — what do I owe, and what happens if I never filed?"

Frequently asked questions

I live in my house. Do I need to do anything?

In Toronto, yes: declare your occupancy status every year even though the property is occupied — the declaration is the proof. In BC's designated communities, principal residences are exempt but you still complete the annual declaration.

Does the federal Underused Housing Tax still exist?

Not for 2025 and later years — Bill C-15 eliminated it. But it still applies to 2022, 2023, and 2024. If you owned affected property in those years and never filed, those returns and payments are still required.

Does short-term renting count as occupied?

For the BC tax, the exemption generally requires the property to be rented six or more months in the year — occasional short stays do not satisfy it. Municipal vacancy taxes define their own exemptions; check your city's rules rather than assuming.

My property is under renovation and empty. Am I taxed?

Possibly. Some cities offer narrow, time-limited exemptions for major renovations or uninhabitable properties, requiring permits or documentation. An empty house with no active permits is just an empty house to the tax office.

Rules and rates as of September 2026. This is general information for Canadian home buyers and sellers, not financial, legal, or tax advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.