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Following the footsteps of the City of Toronto, Hamilton has introduced its own vacancy tax. The City of Hamilton’s new Vacant Unit Tax is now in effect. Originally set to launch a year ago, the tax was delayed when the council unexpectedly struck down the bylaw in late 2023. It was later revived, passed in 2024, and scheduled to take effect in 2025.

Similar to Toronto’s Vacant Home Tax, Hamilton’s Vacant Unit Tax is an annual tax levied on residential properties that have been vacant for more than 183 days in the previous calendar year. All residential property owners must submit an annual declaration on the occupancy status of their unit. Failure to do so will result in the property being deemed vacant, triggering the tax. A residential unit may be considered vacant by the city and subject to the tax if the owner:

• Failed to make a mandatory declaration by the prescribed deadline; OR
• Failed to provide information or failed to submit any evidence required by the City

A principal residence will not be subject to the Vacant Unit Tax, but it is still required to submit a mandatory declaration.

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.

Please note that the deadline to submit the mandatory declaration for the year 2024 is April 30, 2025.

Some more key dates to remember for this year:

For more information about the Vacant Unit Tax, please visit the following link: Vacant Unit Tax | City of Hamilton.

If you have any questions with regards to the City of Hamilton’s Vacant Unit Tax, or if you require assistance with your real estate transaction, we are here to help! Please feel free to reach out to our office at (905) 270-6660 or by email at info@kormans.ca. 

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Yashkaran Singh is an Associate Lawyer at Kormans LLP. You can reach Yashkaran here: ysingh@kormans.ca.

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