Hamilton will launch a Vacant Unit Tax in 2024

The City of Hamilton will implement a new Vacant Unit Tax (VUT) on vacant residential properties, starting in 2024. Residents have already started to receive information in the mail related to the program. Please note, these letters are intended to help inform the public of the upcoming VUT rules and timelines. More communication and official property declarations won’t be mailed until the end of 2023.

The City is instituting the VUT as part of a multi-faceted strategy to address Hamilton’s housing crisis, which will encourage owners to rent or sell vacant properties. By discouraging property owners from leaving units vacant, the City aims to bring more housing online, at a time that housing is greatly needed.

Hamilton will charge an additional 1% tax on the assessed value of any residential unit left vacant for more than 183 days in a year. Revenue generated from the tax can be re-invested into City programs. This program aligns Hamilton with other municipalities, such as Ottawa, Vancouver and Toronto who boast similar programs.

Hamilton residents will receive mandatory declarations attesting to occupancy of a residential unit in the mail by mid-December of 2023. The deadline to submit the declaration will be March 2024.  If an occupancy declaration is not submitted, the property will be considered vacant, and the Vacant Unit Tax will be charged. The first VUT bills will be mailed in June 2024, concurrent with final property tax bills. All residential property owners must submit a mandatory occupancy declaration annually, starting in January 2024 to determine if their property is subject to the tax. This can be done online, or by downloading a paper form from the City of Hamilton website. A principal residence IS NOT subject to the Vacant Unit Tax, but is still required to submit an occupancy declaration annually.

There are also a number of exemptions to the VUT. For example, should the property be undergoing renovations making it unlivable, or be sold, or the principal resident is in hospital or long-term care, the VUT would be exempt. More exemptions are noted on the VUT website.

For more information about the Vacant Unit Tax, including what property owners need to do, further exemptions to the program, and a detailed FAQ, please visit www.hamilton.ca/VacantUnitTax. Questions about the new VUT can be sent directly to a dedicated email, VacantUnitTax@hamilton.ca.