Vacant Unit Tax

A residential unit is considered vacant if it has been unoccupied for more than 183 days during the previous calendar year.

The Vacant Unit Tax applies to all properties that are classified as residential, such as single-family detached, townhouses, row homes, duplex, triplex, etc. 

Declarations can be submitted starting February 10, 2025, and must be completed by April 30, 2025.

Extended deadline: May 30, 2025 * As a one-time courtesy for the first year of the Vacant Unit Tax program, residential property owners who have not yet declared their property status for 2024 are being given an opportunity to submit a late occupancy status declaration without penalty. 

Unfortunately, declarations are mandatory. 

If a mandatory declaration is not submitted, the residential unit will be considered vacant and the Vacant Unit Tax will be charged.

Your principal residence won’t be subject to the Vacant Unit Tax - but you still have to submit a declaration which states that you live in your home for more than 183 days per year.

If your residence is one of multiple residences, and you live in the one in question for less than 183 days per year - then it will be subject to the Vacant Unit Tax.

If your residential unit has been declared vacant for more than 183 days in the previous calendar year and does not meet one of the exceptions, the Vacant Unit Tax will be applied.

The first year the Vacant Unit Tax will be payable is 2025, based on the status of the property in 2024.

The tax will be calculated at a rate of one percent of the property's current assessed value, and the Vacant Unit Tax will be included in the Final Property Tax Bill mailed out in June 2025.

• Late Mandatory Declaration Fee: $250 – waived in 2025 due to postal delays

• Non-Declaration Fee: $250 – waived in 2025 due to postal delays

• Penalties and Interest: Penalty of 1.25% on the first day of default, plus 1.25% interest per month.

• Other offences: Set in the Vacant Unit Tax by-law

A property may be left vacant and be exempt from the Vacant Unit Tax if one of the following criteria is met:

• Principal residence: the residential unit is the principal residence of the owner. 

• Death of an owner: the exemption applies to the year of death, plus one subsequent year only.

• Major renovations: major renovations or redevelopment make occupation of a unit impossible for more than 183 days in the same calendar year, provided a building permit has been issued.

• Sale of the property: the Vacant Unit Tax will not apply in the year of the sale if the transfer is to an unrelated individual or corporation.

• Principal resident is in care, institutionalized or hospitalized: the period of time when the principal resident resides in a hospital, long-term or a supportive care facility.

• Court order: if a court order prohibiting occupancy of the residential property is in effect.

• Non-profit housing: the exemption applies for designated housing projects owned and operated by non-profit corporations.

The Vacant Unit Tax is calculated as a percentage of the property’s current assessed value.

A tax rate of 1% of a property’s assessed value was determined by MPAC. For example, this would result in a $3,850 Vacant Unit Tax on a residential unit with an assessed value of $385,000.

Properties that have been determined vacant will be charged the Vacant Unit Tax on their final property tax bill. If on a quarterly plan, payments are due on June 30 and September 30, 2025. If on a Pre-Authorized Payment (PAP) Plan, the Vacant Unit Tax will coincide with your payment plan.  

If you do not submit your Vacant Unit Tax Declaration, your residence will be assumed vacant and the tax will be applied.

Residential Property Owners may be subject to a fine up to $10,000 for providing false information with the intent to evade the Vacant Unit Tax charge. 

Full instructions are below.

If you run into any issues, you can reach out to Jessica in the Ward 10 Office to give you a hand.

Jeff did not vote in support of the Vacant Unit Tax, and does not believe it is an effective use of City Resources or Taxpayer dollars.

Despite that, Jeff continues to encourage residents to complete the declaration (despite my opposition to it) to avoid any penalties.

You can find full instructions on how to complete your declaration below. If you have a question, or need support, reach out to Jess - our VUT Specialist - at jessica.brown@hamilton.ca.