Ontario does not have a single, province-wide vacant home tax. Municipalities decide whether to introduce the tax, and each may have its own vacancy test, tax rates, exemptions, filing requirements, and appeals process.
Using Ontario’s municipal vacant-home-tax framework, Toronto’s current Vacant Home Tax page, Ottawa’s current Vacant Unit Tax guide, Hamilton’s current Vacant Unit Tax page and Windsor’s 2026 Vacant Home Tax FAQ, our article examines how vacancy taxes are administered in Toronto, Ottawa, Hamilton, and Windsor. It compares these programs, explains what to consider when interpreting vacant home tax notice dates, and outlines steps you can take to preserve your right to dispute the tax.
How Does Vacant Home Tax Work In Ontario?
Ontario does not have a province-wide vacant home tax. However, some Ontario municipalities apply a vacant home tax to properties that are vacant for a prescribed period or where an owner fails to make an occupancy declaration. Usually, the tax is a percentage of the property’s assessed value. Deadlines, rates, exemptions, and declaration requirements vary by municipality. Check with the municipality shown on your property tax bill for more information on its vacant home tax.
How To Read The Tax Year, Declaration Year And Billing Year
| Date label | What it means | Example |
|---|---|---|
| Occupancy or taxation year | Calendar year during which the municipality determines if a home was occupied. | For example, Toronto’s occupancy status for the 2025 tax year will be declared in 2026. |
| Declaration year | This is usually a set period during which the owner must report on the status during the previous year. It follows the tax period. | In the City of Toronto, the deadline was April 30, 2026 for the 2025 declaration year. |
| Billing and appeal year | Once the tax notice arrives, the clock begins ticking on the period of time to file a complaint or appeal. | Tax year, declaration year, and billing year are all different. For example, Toronto issued its 2025 VHT notices in June 2026. |
Current Vacant-Home Tax Rules By Municipality
| Municipality | Current rule checked on August 25, 2026 | Current declaration or dispute point |
|---|---|---|
| Toronto | Properties vacant for six months or more; 3% of current value assessment for the 2025 tax year. Most residential properties will need to be declared each year. | Declaration deadline for the 2025 vacant-home tax was April 30, 2026. Complaint deadline for a 2025 vacant-home tax bill is December 31, 2026. Complaint deadline for a vacant-home tax audit bill is within 90 days |
| Ottawa | Tax rate is 1% in the first consecutive year of vacancy. It increases by one percentage point for each consecutive year of vacancy up to a maximum rate of 5%. Vacancy period is more than 184 days. | 2025 Occupancy Deadline: March 19, 2026. Late Declaration Deadline: April 30, 2026, with a $250 late declaration fee |
| Hamilton | Properties vacant for more than 183 days will be charged a tax equal to 1% of the property’s current assessment. An annual declaration is required. | The deadline to submit the 2025 declaration has been extended to May 15, 2026. Appeals can be submitted within 120 days of the bill date. If your appeal is not accepted, you can appeal that decision within 60 days. |
| Windsor | The tax is 4% for the 2026 and later tax years. Not all homeowners file an annual declaration. Generally speaking, a home may be considered vacant after more than 183 days. | An owner may submit a Notice of Complaint within 30 days of the date on the bill. An owner may submit a request for review within 30 days of receiving the Audit Determination Notice. |
What Counts As A Vacant Home?
Generally, a home may be considered vacant if it has been empty for longer than a period set by each municipality. However, a home can be deemed vacant if you didn’t file a declaration, even if it wasn’t actually vacant.
Most eligible residential property owners in Toronto, Ottawa, and Hamilton must submit a declaration each year. In contrast, most property owners in Windsor are not required to submit a declaration; this is typically limited to select properties chosen for review or that meet the criteria for qualifying non-principal residences.
How Ontario Municipalities Calculate Vacant-Home Tax
The municipalities discussed here generally use the following formula to calculate vacant-home taxes: municipal tax rate × current property assessment.
Municipal rules dictate whether the total is prorated, whether a progressive tax rate applies, and when vacant-home tax is added to the property-tax roll.
Example Of A Vacant Home Tax Calculation
The tax is calculated using the vacant-home tax rate and CVA. For example: If a property has a CVA of $1,000,000, the vacant home tax would be:
- $10,000 (1% tax rate)
- $30,000 (3% tax rate)
- $40,000 (4% tax rate)
This assumes that the property is taxable for the year and no exemption, reassessment, adjustment, or program-specific rule changes the result. Rates and rules may be different in other municipalities.
Check Exemptions Using Your Municipality’s Wording
| Claimed status | Evidence that may matter | Question to check in the by-law or notice |
|---|---|---|
| Principal residence or occupied by another person | Gather applicable government-issued IDs, tax records, insurance, utility records, and a written lease where applicable. | How many months count toward an exemption? Does the occupant have to have the property as his/her principal residence? |
| Major repair or renovation | Have available permits, inspection records, invoices, work schedules and proof to document that normal occupancy was prevented. | Does your municipality’s wording require the work to continue without unreasonable delay? How long must work continue? |
| Owner in care or deceased | Facility letter, previous residency documentation, death certificate, estate documentation. | How many tax years can the exemption be claimed? |
| Sale or transfer | Check the registered transfer, the closing documents, any declaration you’ve filed, and your tax-account status for exemptions. | Does your municipality’s exemption require a 100% arm’s length transfer in the tax year in question? |
How To Dispute A Vacant-Home Tax Charge
Your vacant-home tax notice should include the year being taxed, the date of the notice, reasons for your property being assessed as vacant, and deadlines to complain or appeal. Follow the procedure and meet the deadline exactly as described on your notice.
Processes differ by city. In Toronto, for example, the first step is a Notice of Complaint, followed, if unresolved, by a written appeal to the Appellate Authority; Hamilton and Windsor use different review and appeal procedures.
Keep a copy of your dispute or appeal, including all attachments and proof of delivery, and write down the confirmation number. Include supporting documents to show that your home was not vacant or that your property was eligible for an exemption for the year being taxed.
You may be allowed to appeal a decision that denies your complaint. Check the deadline, which will be counted from the decision date.
Follow the process, and make payment arrangements described on your vacant-home tax notice unless you have confirmation from your municipality that payment can be held. Interest may continue to be added while your case is under review.
What Buyers And Sellers Should Check
Toronto has warned that its Vacant Home Tax becomes a lien against a property, potentially making buyers responsible if a declaration was not filed. Buyers and sellers should request copies of any declaration, notice, complaint decision or proof of tax payment for all applicable tax years. Have the lawyer handling the transaction review the purchase agreement and final tax adjustment.
Vacancy Tax And Home Insurance Use Different Tests
Filing a vacancy tax form with a municipality will not modify a home insurance policy. Vacancy or unoccupancy clauses have different tests in home insurance than they do for taxation purposes. Vacancy time limits can be much shorter.
Advise the insurer or broker before changing a property’s occupancy. Additional endorsements, permissions, inspection frequency, heat, or security may be required when occupancy is changed. The home insurance policy controls coverage, exclusions, and conditions.