What You Need to Know About the New Hamilton Vacant Unit Tax
As a homeowner in Hamilton, it’s important to stay informed about new regulations that may affect your property. The City of Hamilton has introduced a Vacant Unit Tax (VUT) to help increase housing availability and support affordable housing initiatives. Here’s everything you need to know about this new tax and how it might impact you.
What is the Vacant Unit Tax?
The Vacant Unit Tax is a 1% charge on the assessed value of residential properties that remain vacant for more than 183 days in a calendar year (unless exempt). This tax aims to encourage property owners to either occupy their homes or make them available for rent, ultimately increasing housing supply in Hamilton.
Who Needs to Declare?
All residential property owners in Hamilton must declare the occupancy status of their property—even if it is occupied. The deadline to submit your declaration for the 2024 tax year is April 30, 2025 - Mark your calendar to avoid penalties!
What Happens If You Don’t Declare?
If you fail to submit a declaration, your property will automatically be deemed vacant and will be subject to the 1% tax based on its assessed value.
Who Is Exempt?
Certain properties may qualify for exemptions, including:
Homes where the owner is receiving medical care (e.g., in hospital or long-term care)
Estates of deceased owners
Properties undergoing major renovations with city-approved permits
Homes where the owner is temporarily away for work but has leased the property to a tenant
How to Declare
Property owners can declare their occupancy status online or by phone. Visit hamilton.ca for more details and to submit your declaration.
Why This Matters
The Vacant Unit Tax is designed to address housing shortages by encouraging the use of empty homes. Whether you’re a homeowner, an investor, or considering buying in Hamilton, staying on top of these regulations is essential.
If you have any questions about how this tax may impact your property - or if you're thinking of buying or selling this year, reach out! I’d love to help you navigate the Hamilton real estate market.
Stella