Are there exemptions to Ottawa's or Toronto's vacant home tax for a property under renovation?
Yes, both cities generally provide a renovation exemption category, but it usually requires more than simply telling the city the property is being worked on. These exemptions typically require evidence that the renovation is genuinely underway - things like active building permits and documentation showing real construction activity, not just a claim that renovations are planned or paused indefinitely.
This is an area where owners sometimes assume a stalled or informal renovation is enough to qualify, when in practice the city is generally looking for concrete proof the property is actually under active, permitted work during the relevant period. A property that's simply sitting empty with no active permits or visible construction progress is unlikely to qualify for this exemption even if the owner genuinely intends to renovate eventually. Because the exact documentation required, the length of time an exemption can be claimed, and the specific eligibility rules are part of each city's own municipal program and get updated periodically, it's worth confirming the current year's requirements directly with the relevant city program rather than assuming general renovation activity alone is sufficient.
Key takeaways
- Both Ottawa and Toronto generally offer a renovation exemption, but it requires real evidence of active work.
- Building permits and documented construction progress are typically needed, not just a stated intention to renovate.
- A stalled or merely planned renovation is unlikely to qualify on its own.
- Exemption requirements are set by each municipal program and should be confirmed for the current year.