Canada Vacant Home Tax Guide (UHT, SVX, VHT)
the vacant home taxes in Canada. The Underused Housing Tax (UHT) is the federal tax at 1% of the property value on the vacant or the underused residential property owned by the non-residents and the non-Canadians (the "affected owners" — the foreign nationals, the permanent residents who are not the Canadian citizens, the foreign corporations, and the partnerships). The UHT was introduced in the 2021 Federal Budget (effective January 1, 2022). The UHT filing deadline is April 30 of the following year (the Form UHT-2900). The UHT exemptions include the seasonal properties (the "cottages" used by the owner for at least 4 weeks per year), the medical reasons (the owner in the hospital or the care facility), the employment relocation (the owner works away from home), the safety concerns (the "unsafe property"), and the new construction (the "newly constructed property" within the first 12 months). The BC Speculation and Vacancy Tax (SVX) is the provincial tax at 0.5% to 2% of the assessed value on the vacant residential property in the designated SVX areas (the Metro Vancouver, the Capital Regional District (Victoria), the Central Okanagan (Kelowna), the Fraser Valley (Abbotsford), and the Nanaimo). The Toronto Vacant Home Tax (VHT) is the municipal tax at 1% of the CVA (the "current value assessment" — the City of Toronto property assessment) on the vacant residential property in Toronto. The Vancouver Empty Homes Tax (EHT) is the municipal tax at 3% of the property value on the vacant residential property in Vancouver.
Federal UHT (Underused Housing Tax)
- Applicable to: The "affected owners" — the individuals who are NOT the Canadian citizens or the permanent residents, the foreign corporations, the partnerships, the trusts, and the "Canadian corporations" with the foreign ownership (the "specified Canadian corporations" — the Canadian corporations with the foreign ownership above 10%). The Canadian citizens and the permanent residents are generally EXEMPT from the UHT (the "exempt owner" — the individual who is the Canadian citizen or the permanent resident).
- 1% of the property value: The UHT is calculated as 1% of the "taxable value" of the property (the "fair market value" or the "assessed value" — the taxpayer can choose the higher of the two). The minimum penalty for the late filing is $5,000 (the "failure to file" penalty).
- Exemptions: The "qualifying occupancy" exemption — the property is occupied by the owner or the tenant for at least 180 days in the year. The "seasonal property" exemption — the property is used by the owner for at least 4 weeks (28 days) in the year (the "cottage" exemption). The "medical" exemption — the owner is in the hospital or the care facility for 6+ months. The "employment" exemption — the owner works away from the home for 6+ months.
BC Speculation and Vacancy Tax (SVX)
- Rate: 0.5% for the Canadian owners (the "Canadian citizens and the permanent residents") and 2% for the foreign owners (the "foreign nationals and the foreign corporations"). The tax is on the assessed value of the residential property.
- Designated areas: The Metro Vancouver (including the City of Vancouver, the Burnaby, the Richmond, the Surrey, the Coquitlam), the Capital Regional District (the Greater Victoria area), the Central Okanagan (the Kelowna area), the Fraser Valley (the Abbotsford area), and the Nanaimo.
- Exemptions: The principal residence (the "primary home" — the owner occupies the home for at least 183 days in the year), the long-term rental (the "rental property" — the property is rented for at least 6 months in the year), the medical exemptions, the employment exemptions, and the "satellite family" exemption (the family with the spouse or the child who is the Canadian citizen or the permanent resident).
Toronto Vacant Home Tax (VHT)
- Rate: 1% of the CVA (the "current value assessment" — the MPAC assessment for the City of Toronto). The tax is on the vacant residential property in Toronto (the "non-principal residence" — the property that is not occupied as the principal residence for 6+ months in the year).
- Declaration: The owner must file the annual "occupancy status declaration" by February 29 of the following year (the "VHT declaration" — the online form through the City of Toronto portal). The penalty for the failure to file is $250 (the "late declaration penalty").
- Exemptions: The principal residence (the "owner-occupied" — the owner occupies the home for at least 6 months), the long-term rental (the "tenant-occupied" — the tenant occupies the home for at least 6 months), the medical exemptions, the employment exemptions, the legal prohibitions (the "vacant due to the subdivision restrictions"), and the "repairs" exemption (the property under the major renovations for 6+ months).
For the principal residence exemption and the home sale rules, see our Principal Residence Exemption Guide →. For the BC non-resident speculation tax and the foreign buyer ban, see our Non-Resident Speculation Tax Guide →.