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Ontario Taxes on Property
Ontario Non-Resident Speculation Tax (Foreign Buyers Tax)
Toronto Non-Resident Speculation Tax (Foreign Buyers Tax)
Municipal Vacant Home Taxes Ontario
Toronto Vacant Home Tax - Declarations Due February 29, 2024
Ottawa Vacant Unit Tax (VUT) - Declarations Due March 21, 2024
Hamilton Vacant Unit Tax (VUT) - First Payments Due in 2025
Region of Peel Vacant Home Tax - Program on Hold
Homeowners, Home Buyers, Builders & Renovators Beware!!
Government of Ontario Resources
Ontario Non-Resident Speculation Tax (Foreign Buyers Tax)
As per an October 24, 2022 news release, the Ontario Non-Resident Speculation Tax (NRST) rate is increased from 20% to 25% effective October 25, 2022, for binding agreements of purchase and sale entered into on or after October 25, 2022.
This tax applies to "designated land" anywhere in the province, not just in selected areas. Designated land is land that contains at least one and not more than six single family residences. This includes cottages, cabins, etc. that are designed for occupation as the residence of a family. The land does not have to be zoned residential to be affected. As of March 27, 2024, parking units and storage units in a condominium complex are also designated land, so that standalone purchases of these are also subject to the NRST. See Types of property subject to NRST for the latest information.
The tax applies to foreign buyers, including certain trusts with foreign trustees or foreign beneficiaries. See Entities subject to NRST.
To appeal an assessment, see Vacant Home Tax Notice of Complaint.
For detailed information see Ontario Non-Resident Speculation Tax (NRST)
Toronto Non-Resident Speculation Tax (Foreign Buyers Tax)
A Toronto Report For Action from the Chief Financial Officer and Treasurer is recommending a new Municipal Non-Resident Speculation tax (MNRST) of 10% on residential property purchases by foreign buyers, starting January 1, 2025. This was one of the steps that Council directed staff to consider, as noted in a September 6, 2023 news release, to help address Toronto's financial crisis. In February 2024, Toronto city council voted 24-1 to create this new tax effective January 1, 2025.
Municipal Vacant Home Taxes Ontario
Toronto Vacant Home Tax - Declarations Due February 29, 2024
The deadline to declare a property's 2023 occupancy status is February 29, 2024.
The tax rate was increased from 1% to 3% for 2024, based on occupancy status during the previous year.
All owners of residential property in Toronto will be required to declare the status of their property/properties annually.
 | Residential property is vacant if unoccupied for more than 6 months of the year, but there are exemptions. | ||
| A tenanted property is not considered vacant if it was occupied by tenants for at least 184 days in increments of at least 30 days. i.e., the lease or sublease term must be for at least 30 days to be considered an occupancy. | ||
| A property will be "deemed" vacant if owner fails to make a property status declaration. | ||
| The tax is 3% of Current Value Assessment (CVA) (was 1% in 2023
based on occupancy status in 2022)
| ||
| The tax is payable by the 1st of May |
There are exemptions from the tax for various reasons. When the principal resident has entered hospital or long term care for at least 6 months, an exemption may be claimed for up to 2 consecutive taxation years.
See Vacant Home Tax on the City of Toronto website.
Ottawa Vacant Unit Tax (VUT) - Declarations Due March 21, 2024
The deadline to declare a property's 2023 occupancy status is the Interim Tax due date - third Thursday in March, so March 21, 2024. The late declaration deadline is April 30th, but late declarations are subject to a $250 fee.
All owners of residential property in Ottawa will be required to declare the status of their property/properties annually.
| Residential property is vacant if unoccupied for more than 184 days of the year, but there are exemptions. | ||
| A tenanted property is not considered vacant if it was occupied by tenants for at least 184 days in increments of at least 30 days. i.e., the lease or sublease term must be for at least 30 days to be considered an occupancy. | ||
| A property will be "deemed" vacant if owner fails to make a property status declaration by April 30th. | ||
| The tax is 1% of Taxable Assessed Value
|
There are exemptions from the tax for various reasons. When the owner or occupant was residing in a hospital or long term care facility for at least 184 days in the previous calendar year, an exemption may be claimed.
See Vacant Unit Tax on the City of Ottawa website
Hamilton Vacant Unit Tax (VUT)
All owners of residential property in Hamilton will be required to declare the status of their property/properties annually, with the following provisions:
| Residential property is vacant if unoccupied for more than 183 days of the year, but there are exemptions | ||
| If a mandatory declaration is not submitted the property will be considered vacant and VUT will be charged | ||
| Principal residence will not be subject to the VUT but is still required to submit a mandatory | ||
| The tax is 1% of Taxable Assessed Value, and will be included in the Final
Property Tax Bill mailed out in June
|
The first year the tax will be payable is 2025, based on the status of the property in 2024.
There are exemptions, including an exemption for when the principal resident is in care, institutionalized or hospitalized. There does not appear to be a limit to the length of time for this exemption to apply.
See Vacant Unit Tax on the City of Hamilton website.
Region of Peel Vacant Home Tax - Program on Hold
Public consultations have ended. The Region of Peel expects to report back to Council in early 2023 with a summary of the consultation, program design options and next steps.
See Vacant Home Tax on the Peel Region website. As of October 2, 2024, the tax is still on hold.
Windsor Vacant Home Tax (VHT)
In the 2024 Billing Year, the City of Windsor will calculate the VHT as 3% of the 2023 assessment value for a residential property that is determined to be unoccupied for a period of more than 183 days in a calendar year.
Only properties suspected to be unoccupied will require a declaration of occupancy status to be completed.
There are exemptions from the tax for various reasons. When the registered owner has entered hospital or long term care, an exemption applies for up to 2 years from the date admitted to care.
See Municipal Vacant Home Tax (VHT) on the City of Windsor website.
Homeowners, Home Buyers, Builders & Renovators Beware!!
Some caveats identified by an article in the Canadian Tax Foundation, Ontario's New Vacant Home Taxes: The Blind Spots, by Noah Sarna, Thorsteinssons LLP:
| Homeowners must be prepared to provide documentation proving their occupancy. This may be a problem for owners who do not use their home as their mailing address for all purposes. | ||||
| Home Buyers: The obligation for these taxes are generally an obligation
attached to the property, not the homeowner.
| ||||
| Builders/Renovators: Among other issues, there may be an exemption for buildings being constructed or renovated, but a delay in a permit being issued following application for it could result in the tax being payable. | ||||
| Multiple uses during a single year could cause problems. |
See the full article for more information!
Government of Ontario Resources
Ontario Non-Resident Speculation Tax (NRST)
Ontario Senior Homeowners' Property Tax Grant
TaxTips.ca Resources
BC Speculation and Vacancy Tax
City of Vancouver Empty Homes Tax
BC Foreign Buyer TaxRevised: October 02, 2024