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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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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

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