- As of mid-2026, Toronto, Ottawa, and Hamilton are among the Ontario municipalities that have adopted a vacant home tax.
- The general policy goal behind these programs is to encourage owners of empty homes to either occupy, rent, or sell them, on the theory that leaving housing stock unused contributes to…
- Although each municipality's bylaw is its own, most vacant home tax programs share a similar structure: Because the specific percentage, deadlines, and exemption criteria vary by city…
If you own a property in one of a growing number of Ontario cities and don't live in it, rent it, or use it regularly, you may owe a vacant home tax — a municipal charge that's separate from your ordinary property tax bill and separate from provincial or federal taxes entirely. It's easy to miss because it's relatively new, it's municipal rather than provincial, and it usually requires the homeowner to take an action (filing a declaration) rather than simply waiting for a bill.
This article explains, in general terms, which kinds of municipalities have adopted a vacant home tax, how the programs typically work, and why it matters even if you're confident your home doesn't qualify as "vacant."
Which Ontario Cities Have a Vacant Home Tax
As of mid-2026, Toronto, Ottawa, and Hamilton are among the Ontario municipalities that have adopted a vacant home tax. This is a municipal-by-municipal decision, not a provincial program — each city that adopts one sets its own bylaw, its own declaration process, and its own rate. Other Ontario municipalities have considered or may adopt similar programs over time.
Because this list can change, and because program details differ from city to city, always confirm the current status directly with your specific municipality (or with your lawyer) rather than assuming your city is or isn't included.
Why Municipalities Adopt a Vacant Home Tax
The general policy goal behind these programs is to encourage owners of empty homes to either occupy, rent, or sell them, on the theory that leaving housing stock unused contributes to tight housing supply in urban centres. Whether or not that goal is achieved is a policy debate — but from a homeowner's perspective, the practical effect is the same: an annual obligation to declare your property's occupancy status, with a tax consequence if it doesn't qualify for an exemption.
The Basic Mechanics Common to These Programs
Although each municipality's bylaw is its own, most vacant home tax programs share a similar structure:
| Feature | General approach |
|---|---|
| Who must respond | Generally every residential property owner in the participating municipality, not just those who suspect their home might be "vacant" |
| What's required | An annual declaration of the property's occupancy status for the relevant period |
| What counts as "vacant" | Occupancy below a threshold the municipality sets, subject to defined exemptions |
| What happens if you don't file | Municipalities commonly treat a missed declaration as a default finding of vacancy, which can trigger the tax even if the home was actually occupied |
| How the tax is calculated | Typically a percentage of the property's assessed value, set by the municipality and subject to change |
| How it's billed | Usually added to or billed alongside the property tax account |
Because the specific percentage, deadlines, and exemption criteria vary by city and change over time, this article deliberately doesn't quote a number — check your municipality's current bylaw or website, or ask your lawyer to confirm, before you rely on a specific figure.
Why It Matters Even If You Think You're Exempt
A common and costly mistake is assuming that because a home is obviously occupied, or obviously not vacant, no action is required. In most of these programs, the declaration itself is mandatory for essentially all owners — it's not optional paperwork reserved for owners of empty properties. Skipping the declaration because "my house is clearly lived in" is one of the most frequent reasons homeowners end up disputing a tax they shouldn't owe.
What This Means for Buyers and Sellers
If you're buying or selling in a municipality with a vacant home tax, the property's declaration history and any outstanding vacant home tax can become part of the closing conversation — similar in spirit to how property tax arrears are addressed, though it's a separate municipal charge with its own rules. Your real estate lawyer can help confirm the property's status as part of standard due diligence.
Frequently asked questions
Does the vacant home tax apply to my primary residence?
Homes that are genuinely occupied as a principal residence generally don't trigger the tax, but you typically still have to file the declaration confirming that occupancy — the tax and the filing obligation are two different things.
I own a cottage I only use seasonally — does that count as vacant?
It depends on how your specific municipality defines occupancy thresholds and whether cottages or seasonal properties fall within the bylaw at all. Some vacant home tax programs are limited to certain property types or areas — confirm your property's treatment directly with the municipality.
What if my city doesn't have a vacant home tax yet?
Then you likely have no declaration or tax obligation under this specific program today, but municipalities have been adopting these bylaws over time, so it's worth checking periodically, especially if you own property in a larger urban centre.
Is the vacant home tax the same as the province's Non-Resident Speculation Tax?
No — they're entirely different programs. The vacant home tax is a municipal charge tied to occupancy status and applies regardless of the owner's residency or citizenship, while Ontario's Non-Resident Speculation Tax is a provincial land transfer tax add-on tied to who is buying, not how the property is later used.
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