Vacant Unit Tax

What is the definition of a vacant unit?

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

When will I need to submit the declaration?

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

Where do I find the declaration form?

The declaration form will be available starting February 10, 2025. Notice to declare letters will be mailed out to eligible property owners in early February 2025. Declarations can be submitted online or over the phone at 905-546-2573.

What happens if I do not submit my declaration by the due date?

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.

Which properties are eligible for the Vacant Unit Tax?

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

How is the Vacant Unit Tax calculated and charged?

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

Council approved a tax rate of 1% of a property’s assessed value as 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.  

Who is responsible for declaring that their principal residence is vacant, and how do they do that?

The property owner is responsible for submitting the declaration. Declarations can be submitted online or over the phone at 905-546-2573.

What do I need to properly fill out the annual declaration?

To complete your annual declaration, you’ll need an access code and roll number. These can be found on the Notice to Declare letter sent to you by mail in early February or on your most recent property tax bill from the City of Hamilton. If a residential property owner does not receive a Notice to Declare letter, they can contact the Vacant Unit Tax team by email at [email protected]  or by phone at 905-546-2573.

Sample Notice to Declare Letter

Sample Tax Bill

Who can submit the annual declaration of a property?

The annual declaration must be submitted by the property owner or someone authorized to declare on their behalf.

I own more than one residential property; do I need to submit more than one declaration?

Yes. A declaration must be submitted for each residential property.

I own a duplex / triplex / fourplex / fiveplex / sixplex, do I need to declare for each unit?

Yes. Residential property owners must submit the status of each unit at the property. The City uses the MPAC property code to determine how many units are contained in a residential property. For example, a duplex would contain two units within the property. 

There is more than one owner of my property; do we each need to submit a declaration?

No. Only one declaration is required for each residential property.

Do I have to fill out this declaration form every year? Even if I live there? If so, why? Will the City send me a letter each year to prompt me or do I have to proactively complete and submit the form each year?

Yes, an annual declaration will be required each year. Declarations are required annually to ensure that the Vacant Unit Tax is applied accurately and reflects any changes in how the property was used. This is the most effective and reliable method available to the City to ensure all property occupancy changes are captured.

The City will remind property owners to make the annual declaration every year by mailing or emailing a notice to declare letter.

Is there an option/consideration for people who go south for the winter and are not here in February (Snowbirds)? 

Declarations can be completed online or by phone at 905-546-2573. If property owners are away during the declaration period (February 10, 2025 to April 30, 2025), they can authorize someone else to complete the declaration on their behalf.

Why did this program get implemented and when?

The Vacant Unit Tax program was approved by Council in June of 2022 as one of the measures to address the City’s housing crisis. By creating an incentive for property owners to sell unoccupied homes or make them available as rentals, the City aims to make more housing available for those who need it.

What other municipalities use a Vacant Unit Tax?

Vancouver’s Empty Homes Tax has been in effect since 2017.
Toronto approved a Vacant Home Tax and Ottawa approved a Vacant Unit Tax beginning in 2023.

Why must all eligible property owners declare?

Staff have reviewed several residential Vacant Unit Tax  programs globally to determine how residential Vacant Unit Tax has been implemented. The programs use one of three different methodologies:

• Mandatory Declaration
• Voluntary Vacant Unit Declaration: Property owners would voluntarily declare vacancy in good faith and be taxed by the City.
• Complaint-Based: Vacant properties would be identified through a complaint or tip from residents

In all cases, programs that used the Voluntary Vacant Unit Declaration or Complaint-Based method have been ineffective in capturing vacant units and reducing vacancies in the cities. In comparison, those using the mandatory declaration have had much more success.

Why can’t the City get information from utility companies to identify vacant properties?

The City does not have access to that information as it is protected under the Municipal Freedom of Information and Protection of Privacy Act (MFIPPA). Further, water and hydro usage data would not accurately indicate how the property was occupied. For example, a principal residence could record low usage due to travel, work contracts, extensive renovations, military postings, or schooling.

If a building permit or demolition permit is issued, will the Vacant Unit Tax apply?

If major renovations or redevelopment make it impossible to occupy a unit for more than 183 days, the tax will not apply, provided that a building permit has been issued. However, residential property owners are still required to submit a declaration with the appropriate exemption.

Does the Vacant Unit Tax apply to “granny suites”?

All residential properties are required to submit a declaration. However, any units, such as accessory or “granny suites,” contained in a residential property do not require a declaration.

Does the Vacant Unit Tax apply to vacant land or lots that have been subdivided but not developed?

No, the Vacant Unit Tax only applies to residential properties and not vacant land.