Every Ontario municipality can now levy one. O. Reg. 458/22 as amended by O. Reg. 143/24 designates “every single-tier municipality” and “every upper-tier municipality”, replacing the former named list. In force today: Toronto at 3% of assessment from the 2024 year on a property vacant six months or more, declaration due 30 April; Ottawa on a graduated 1% rising to 5% scale by consecutive vacant year, approved 13 November 2024; Hamilton at 1% under By-law 25-201, deemed in force 1 January 2025. Peel, Mississauga and Brampton have none — paused 6 July 2023 and never enacted. In all three that do, failing to declare makes the property deemed vacant and taxable, with fines to $10,000.
Vacant home taxes started as a Toronto and Ottawa experiment. That is no longer what they are, and the change went almost unreported.
O. Reg. 458/22, as amended by O. Reg. 143/24, now designates “every single-tier municipality” and “every upper-tier municipality” for the purposes of Part IX.1 of the Municipal Act, 2001. The era of a short named list is over. Every municipality in Ontario can now pass a vacancy tax by-law. Whether yours has is a separate question — and the answers differ sharply.
Where they are actually in force
| Toronto | Ottawa | Hamilton | Peel / Mississauga / Brampton | |
|---|---|---|---|---|
| In force? | Yes | Yes | Yes | No — paused |
| By-law | Ch. 778 | 2022-135 | 25-201 | — |
| Rate | 3% of assessment from the 2024 year | 1% rising to 5% by consecutive vacant year | 1% of assessment | 1% proposed, never enacted |
| Vacancy threshold | Six months or more | More than 184 days | More than 183 days | — |
| Declaration deadline | 30 April | Interim tax due date; late accepted to 30 April | 15 April 2026, extended to 15 May 2026 | — |
| Fail to declare | Deemed vacant and billed | Deemed vacant | Deemed vacant | — |
| Late fee | — | $250 | $250 | — |
| Fine | Up to $10,000 | Up to $10,000 ($500 minimum per offence) | Up to $10,000 | — |
Ottawa escalates; Toronto is a flat three per cent
Ottawa is the one to understand, because it does not work like the others. Council approved a graduated structure on 13 November 2024, applying from the 2024 vacancy year: one per cent in the first year, rising by one percentage point for each consecutive vacant year, to a maximum of five per cent.
A currency warning on Ottawa: the published by-law consolidation is current only to 6 December 2023 and contradicts the City’s own programme pages on the rate. The Council decision of 13 November 2024 is the authority for the graduated structure, not the by-law text. Several Ottawa pages also returned HTTP 403 to automated retrieval, so confirm directly.
Toronto by contrast is a flat three per cent of current value assessment from the 2024 taxation year, on a property vacant six months or more.
Hamilton is the newest: By-law 25-201, passed 29 October 2025 and deemed in force from 1 January 2025, at one per cent on properties vacant more than 183 days, with the first declaration deadline of 15 April 2026 extended to 15 May 2026.
Peel is a clean no
There is no vacant home tax in Mississauga or Brampton. Consideration was paused on 6 July 2023 in connection with Bill 112 and the proposed dissolution of the Region of Peel. A one per cent rate had been proposed; it was never enacted.
The rule that catches people is not the rate
It is that failing to declare makes the property deemed vacant and taxed. Toronto: “A property will be deemed vacant if the owner fails to make a declaration of occupancy status by the deadline.” Hamilton and Ottawa do the same. You do not have to leave a house empty to get the bill. You only have to forget the form.
The transaction problem, in the City’s own words
Toronto is unusually direct about who carries this in a sale:
- “It is the responsibility of purchasers and vendors to make appropriate arrangements to ensure that the declaration of occupancy status has been submitted.”
- “Vendors should provide a copy of the completed and filed declaration of occupancy status to the purchaser.”
- Sold within the taxation year being declared: either party may declare.
- Sold after the taxation year being declared: “The vendor must submit a Declaration” — only the vendor knows the prior year’s occupancy status.
- “Power of sale does not constitute an exemption.”
That fourth point is where deals go wrong. A property sold in, say, March is sold after the prior taxation year — and only the vendor can declare for it. If they do not, the property is deemed vacant for a year the purchaser did not own it. Ask for the filed declaration as a document, in the same breath as the survey and the tax bill.
What to do
- Diary the declaration deadline for every property you own in a municipality that has one. Forgetting is the most common way to be taxed.
- On a purchase, ask for the filed declaration for the prior year in writing.
- On a sale, file before closing where the year in question is behind you — you are the only person who can.
- In Ottawa, count consecutive years, because the rate climbs.
- Check whether your municipality has adopted one at all, and check again — every single-tier and upper-tier municipality in Ontario is now designated to be able to.
Buying or selling in a municipality with a vacant home tax?
The single most useful thing on a purchase is to ask for the filed declaration for the prior year as a document, because where a property sells after the taxation year being declared, only the vendor can file for it — and if they do not, the property is deemed vacant for a year you did not own. I raise this on every transaction where it applies. It costs nothing to ask and it is expensive to discover afterwards.
connect@jatindua.com · 437-987-1925 · Book a free consultation
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Frequently asked questions
Which Ontario municipalities have a vacant home tax?
Toronto, Ottawa and Hamilton have one in force. Toronto charges three per cent of current value assessment from the 2024 taxation year on a property vacant six months or more. Ottawa operates a Vacant Unit Tax under By-law 2022-135 with a graduated structure approved by Council on 13 November 2024, starting at one per cent and rising by one percentage point for each consecutive vacant year to a maximum of five per cent. Hamilton charges one per cent under By-law 25-201, passed 29 October 2025 and deemed in force 1 January 2025, on properties vacant more than 183 days. Peel Region, and therefore Mississauga and Brampton, has none: consideration was paused on 6 July 2023 in connection with Bill 112 and a proposed one per cent rate was never enacted.
Can any Ontario municipality bring in a vacant home tax?
Yes, since O. Reg. 143/24. Section 1 of O. Reg. 458/22, Optional Tax on Vacant Residential Units, Designated Municipalities, now designates every single-tier municipality and every upper-tier municipality for the purposes of Part IX.1 of the Municipal Act, 2001, replacing the earlier short list of named municipalities. Designation permits a municipality to pass a vacancy tax by-law; it does not itself impose a tax.
What happens if I forget to declare?
The property is deemed vacant and taxed. Toronto states that a property will be deemed vacant if the owner fails to make a declaration of occupancy status by the deadline, and that if a declaration is not received by 30 April the City will assume the property was vacant and send a Notice of Assessment. Ottawa and Hamilton operate the same way, each with a $250 late or non-declaration fee. Fines of up to $10,000 apply for false declarations or failure to provide information when requested, in addition to the tax.
Who files the declaration when a property is sold?
It depends when the sale happens relative to the year being declared. Toronto states that where the property sold within the taxation year being declared, either the vendor or the purchaser can submit a declaration. Where the property sold after the taxation year being declared, the vendor must submit the declaration, because only the vendor knows the occupancy status for the prior year. The City also states that it is the responsibility of both purchasers and vendors to ensure a declaration has been submitted, and that vendors should provide a copy of the filed declaration to the purchaser. Power of sale does not constitute an exemption.
How much is Ottawa’s vacant unit tax?
It escalates. Council approved a graduated structure on 13 November 2024, applying from the 2024 vacancy year, beginning at one per cent and increasing by one percentage point for each consecutive year the unit is vacant, to a maximum of five per cent. Note that the City’s published by-law consolidation is current only to 6 December 2023 and does not reflect that structure — the Council decision is the authority for it. A $250 late declaration fee applies and fines run from $500 to $10,000 per offence.
Related reading
- Toronto multi-tenant house licensing: the register a buyer can search
- Short-term rental rules compared across the GTA
- The Toronto tree by-law: $100,000 per tree
- Lead pipes: Ontario’s legal standard is twice the federal guideline
Sources
Every figure on this page traces to one of these, and each was read on 1 September 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- O. Reg. 458/22, Optional Tax on Vacant Residential Units, Designated Municipalities. Government of Ontario e-Laws, consolidation period 27 March 2024, last amended by O. Reg. 143/24. Section 1 designates every single-tier municipality and every upper-tier municipality for the purposes of Part IX.1 of the Municipal Act, 2001, replacing the former named list. Accessed 1 September 2026.
- Vacant Home Tax — City of Toronto. City of Toronto, date modified 22 July 2026. States that beginning with the 2024 taxation year the rate increased to three per cent of current value assessment, that a property vacant for six months or more is taxable, that a property will be deemed vacant if the owner fails to declare by the 30 April deadline, and that false declarations or failure to provide information may result in a fine of up to $10,000 in addition to the tax. States that it is the responsibility of purchasers and vendors to ensure a declaration has been submitted, that vendors should provide a copy of the filed declaration to the purchaser, and that power of sale does not constitute an exemption. Accessed 1 September 2026.
- Vacant Unit Tax — City of Ottawa. City of Ottawa. By-law 2022-135, deemed to have come into force 1 January 2022 with the first taxation year 2023. Council approved a graduated structure on 13 November 2024, applying from the 2024 vacancy year, starting at one per cent and increasing by one percentage point for each consecutive vacant year to a maximum of five per cent. A $250 late declaration fee applies and fines run from $500 to $10,000 per offence. Note the published by-law consolidation, current to 6 December 2023, does not reflect the graduated rate; the Council decision is the authority for it. Some pages on this site returned HTTP 403 to automated retrieval. Accessed 1 September 2026.
- Vacant home tax — City of Hamilton. City of Hamilton, By-law 25-201, passed 29 October 2025 and deemed to have come into force 1 January 2025. Sets a rate of one per cent of current value assessment on properties vacant more than 183 days, with an initial declaration deadline of 15 April 2026 extended to 15 May 2026, a non-declaration fee of $250, and fines of up to $10,000. Read 2 September 2026. Accessed 1 September 2026.
- Vacant home tax in Peel, on hold — Region of Peel. Region of Peel. Records that consideration of a vacant home tax was paused on 6 July 2023 in connection with Bill 112 and the proposed dissolution of the Region. A one per cent rate had been proposed but was never enacted, so no vacant home tax is in force in Mississauga or Brampton. Read 2 September 2026. Accessed 1 September 2026.
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke, and I work with buyers and sellers across the west GTA. Municipal by-laws are where a lot of real estate goes wrong — the rules differ from one side of a boundary road to the other, the fees change on dates nobody announces, and the consolidated PDF on a city website is often months behind what council actually passed.
Everything below is quoted from the municipality’s own by-law or page, with the date that source carries, so you can check it against the current version rather than take my word for it. Where a published document is out of date, or where a figure simply is not published anywhere, the page says so. connect@jatindua.com or 437-987-1925.