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

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Underused Housing Tax

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