Vacant Home Tax

A Vacant Home Tax is a municipal levy on empty residential properties to discourage speculation and boost housing supply.

Vacant Home Tax

September 30, 2025


What is Vacant Home Tax?

A Vacant Home Tax is a municipal tax levied on residential properties that remain vacant for extended periods, typically six months or longer. Cities like Toronto, Ottawa, and Vancouver have implemented such taxes to discourage speculation and increase rental availability.

Why Vacant Home Tax Matters in Real Estate

Vacant Home Taxes matter in real estate because they address housing shortages at the municipal level. They motivate owners to rent out unused properties, generating additional housing supply and tax revenue for city programs.

Example of Vacant Home Tax in Action

A homeowner in Toronto leaves a condo empty for most of the year. They are assessed a Vacant Home Tax of 1% of the property’s assessed value unless exemptions apply.

Key Takeaways

  • Implemented by municipalities to address vacancy.
  • Applies when homes are left empty for extended periods.
  • Encourages owners to rent out properties.
  • Rates typically set as a percentage of assessed value.
  • Supports local housing affordability measures.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Manulife Sells Downtown Ottawa's EDC HQ To Regional Group For $143.5M

Manulife Sells Downtown Ottawa's EDC HQ To Regional Group For $143.5M

The 19-storey office tower at 150 Slater Street in Ottawa. (CBRE)

In late-February, Ottawa-based real estate firm Regional Group announced that they had acquired 150 Slater Street in downtown Ottawa, a landmark office building near Parliament Hill.

Located at the corner of Slater Street and O’Connor Street, two blocks away from Confederation Park and within 50 metres of the LRT Parliament Station, 150 Slater Street is a 19-storey Class A office tower that was purpose-built as the global headquarters for Crown corporation Export Development Canada (EDC), which was seeking to consolidate its operations from two nearby buildings.

Keep ReadingShow less

Canada Housing Starts Rise In 2025, But Condo Pipeline Weakens: CMHC

Canada Housing Starts Rise In 2025, But Condo Pipeline Weakens: CMHC

Canada added more new housing supply in 2025, driven largely by record rental construction and a growing share of missing middle housing — but new data suggests underlying vulnerabilities are building, particularly in major ownership markets like Toronto and Vancouver.

According to the Spring 2026 Housing Supply Report from the Canada Mortgage and Housing Corporation (CMHC), national housing starts rose 6% year-over-year in 2025, to 259,000 units. Activity exceeded the 10-year average in nearly every major market, with one notable exception: Toronto, where starts fell well below historical norms and reached the lowest per-capita level among Canada’s seven largest census metropolitan areas (CMAs).

Keep ReadingShow less

Manuela Preis On Loving (And Posting) Life As A Crane Operator

Manuela Preis On Loving (And Posting) Life As A Crane Operator

Manuela Preis/Instagram

There are varying statistics and things are improving, but even so, women are estimated to represent just ~15% of the construction sector workforce in Canada. Any given construction site is home to a variety of people who play different roles, with one of the most important being the crane operator overlooking the site.

Statistics suggest that as few as 1 in 25 crane operators is a woman (that's ~4%). Manuela Preis is one of those ones.

Keep ReadingShow less
MUST READ: Manuela Preis On Loving (And Posting) Life As A Crane Operator

CALIBRATED Lands In Vancouver For Women Leading Construction, Development, Industrial Sectors

CALIBRATED Lands In Vancouver For Women Leading Construction, Development, Industrial Sectors

RHONDA DENT PHOTOGRAPHY/Shauna Moran Coaching

A leadership program aimed at women working in high-pressure, industrial sectors is landing in Vancouver this spring.

CALIBRATED: A Leadership Experience for Women Who Build will take over the Vancouver Club on May 13, bringing together women in senior leadership, executive, and technical roles across construction, development, infrastructure, energy, water, environment, and resources.

Keep ReadingShow less

Tightening Supply Could Support GTA Home Sales Later This Year: TRREB

Tightening Supply Could Support GTA Home Sales Later This Year: TRREB

After a softer start to the year, tightening market conditions could set the stage for a rebound in Greater Toronto Area home sales later in 2026, according to the Toronto Regional Real Estate Board.

New data from TRREB shows that while resale transactions declined year-over-year in February, new listings fell at a much sharper pace — a dynamic that could increase competition if demand begins to reassert itself.

Keep ReadingShow less

Over 250 New Affordable Homes Break Ground In Regent Park

Over 250 New Affordable Homes Break Ground In Regent Park
Revitalization of Regent Part, Toronto

Toronto’s Regent Park is poised to welcome 271 new affordable homes as the next phase of its revitalization moves forward.

A new 26-storey tower, at the southeast corner of Gerrard Street East and Dreamers Way, will deliver 136 replacement rent-geared-to-income (RGI) units and 135 new affordable rental homes, with a focus on family-sized apartments. New indoor and outdoor community spaces are also part of the development.

Keep ReadingShow less

Moving Day: February 2026 Industry Hires And Promotions

Moving Day: February 2026 Industry Hires And Promotions

From left: Jennifer Drury, Conwest; John Jung, Prodigy Group; Annely Zonena, City of Toronto; Jordan Dawson, Broccolini; Yasmien Fadl, TD; Aziz Lakdawala, Brookfield Properties

You like to be in the know. We know.

For your information, reference, and networking needs, here are the moves, hires, and promotions the real estate and development sector saw in February 2026:

Keep ReadingShow less

Crestpoint Buys 145 Wellington For $50.8M, Site Slated For H&R REIT Tower

Crestpoint Buys 145 Wellington For $50.8M, Site Slated For H&R REIT Tower

The office tower at 145 Wellington Street West in Toronto (left) and the planned 65-storey tower (right). / Sullivan Law | Partisans with Turner Fleischer

The downtown Toronto office building located at 145 Wellington Street West — that was set to be redeveloped into a 65-storey tower — has officially been sold, leaving the fate of the planned project up in the air.

The 13-storey Class A office building constructed in 1987 — located kitty-corner from Roy Thompson Hall and just one block away from the Metro Toronto Convention Centre — was formerly owned by Toronto-based H&R REIT (TSX: HR.UN), which has made various development proposals over the years.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.