Hamilton launches new Vacant Unit Tax (VUT)

The City of Hamilton is instituting a Vacant Unit Tax (VUT) as one of the measures to address Hamilton’s affordable housing crisis. It aims to increase the supply of housing in Hamilton by encouraging residential property owners to keep their properties occupied rather than vacant. Following the recovery of administrative costs, revenues generated from the Vacant Unit Tax will be reinvested into affordable housing initiatives.

The City will be charging an additional tax of one percent of a property’s current assessed value, on any residential unit that is vacant for more than 183 days in the previous year. Hamilton joins the cities of Vancouver, Toronto and Ottawa to implement a Vacant Unit Tax.

To complete your annual Vacant Unit Tax declaration, you’ll need an access code and your roll number. These two pieces of information can be found on either the Notice to Declare letter or your most recent property tax bill, sent from from the City of Hamilton.

Declarations can be made in-person, by mail, online, or by phone:

Visit my.hamilton.ca to complete your declaration online or call 905-546-2573 to make it by phone.

Further, you can download the the paper form and submit it by mail to City of Hamilton, Corporate Services, Vacant Unit Tax, 71 Main St W, 1st Floor, Hamilton, ON L8P 4Y5. You can also visit City Hall or any Municipal Centre to complete a declaration in-person.

If you have any issues completing your declaration, please contact the Vacant Unit Tax team by email at vacantunittax@hamilton.ca or by phone at 905-546-2573.

The deadline to make a declaration is April 30, 2025. For this first year of the program, there is no penalty for a late declaration.

Some residents have been alarmed because the VUT notice letter mentions a large fine. That fine would be issued for fraudulent claims and does not apply to honest Hamiltonians

Consequences of Non-Submission (after year one):

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

The Vacant Unit Tax is an annual tax payable by the owner of a residential unit that has been vacant for more than 183 days in the previous calendar year. All owners of residential units must submit an annual mandatory declaration on the status of their property. If a mandatory declaration is not submitted, the residential unit will be considered vacant and the Vacant Unit Tax will be charged.

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

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

• failed to provide information or failed to submit any evidence required by the City

The Vacant Unit Tax will be added to the tax roll and collected in the same manner as property taxes.

Exemptions:
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.

Appeals:
A property owner that has been charged the Vacant Unit Tax may submit a notice of complaint if: 

• The City made an error or omission that resulted in the imposition of the Vacant Unit Tax; or 

• The Owner made an error or omission in completing the property mandatory declaration that resulted in the imposition of the Vacant Unit Tax. 

A property owner who believes they have been charged the Vacant Unit Tax in error will have 60 days after the final June tax bill or the audit determination notice has been received to submit a notice of complaint.