Did you know that failing to declare your property’s occupancy status in Hamilton could result in an additional tax charge? The Vacant Unit Tax (VUT), introduced by the City of Hamilton, is designed to discourage long-term property vacancies and increase housing availability.
This means that all residential property owners must submit an annual declaration confirming their property’s status, even if it is occupied.
With the April 30, 2025 deadline fast approaching, many property owners are wondering: Who needs to declare? What happens if I miss the deadline? Are there any exemptions?
This guide provides a detailed breakdown of the Vacant Unit Tax, how to submit your declaration, and the potential penalties for non-compliance. Stay informed and ensure you meet the requirements to avoid unnecessary tax charges.
What Is the Vacant Unit Tax in Hamilton?
The Vacant Unit Tax (VUT) is a new policy introduced by the City of Hamilton to address the growing housing crisis and encourage the optimal use of residential properties. The tax applies to residential units that have been left vacant for more than 183 days within the previous calendar year.
By implementing this tax, the city aims to discourage property owners from keeping homes empty and instead promote their use for rental or personal occupancy.
The revenue collected from the Vacant Unit Tax will be reinvested into affordable housing programs, ensuring that more Hamilton residents have access to safe and secure housing. The initiative follows similar measures taken by other major Canadian cities such as Toronto, Ottawa, and Vancouver, where vacant property taxes have already been introduced to combat housing shortages.
This tax applies to all residential properties classified under the Municipal Property Assessment Corporation (MPAC), including:
- Single-family detached homes
- Townhouses and row houses
- Multi-family dwellings (duplexes to sixplexes)
However, certain properties may be exempt from this tax under specific conditions, which will be covered in a later section. The VUT is an annual tax, and all residential property owners are required to declare their occupancy status to comply with the regulation.
Failure to submit a declaration will automatically classify the property as vacant, and the tax will be applied accordingly. The first year of enforcement will be 2025, based on property statuses recorded in 2024.
Who Needs to Declare Their Property?
All residential property owners in Hamilton are required to submit an annual Vacant Unit Tax (VUT) declaration. The purpose of this declaration is to confirm the occupancy status of the property for the previous calendar year. Even if the property is occupied, a declaration must still be submitted.
Who Must Submit a Declaration?
The following groups are required to file a declaration:
- Homeowners who reside in their property: Even if the property is your principal residence, you must still complete the declaration.
- Landlords renting out their property: If you lease your property to tenants, you must declare its occupancy to avoid being classified as vacant.
- Property owners with multiple residential units: Owners of duplexes, triplexes, or other multi-unit residences must submit declarations for each unit.
- Owners of vacant properties: If a unit was unoccupied for more than 183 days in the previous calendar year, the Vacant Unit Tax will be applied unless the property qualifies for an exemption.
- Estate representatives: If a property owner has passed away, the executor or legal representative must declare the property’s status.
Who Is Exempt from Declaring?
There are no automatic exemptions from the declaration requirement. Even if a property qualifies for an exemption from the tax, the owner must still submit a declaration to confirm eligibility. Exemptions will be covered in detail in a later section.
What Happens If You Fail to Declare?
If a property owner does not submit the declaration by the April 30, 2025 deadline, the property will automatically be considered vacant, and the Vacant Unit Tax will be charged. Additionally, penalties and interest may be applied for non-compliance.
All declarations must be submitted annually, ensuring that the City of Hamilton maintains an accurate record of residential property occupancy. Property owners will receive a Notice to Declare letter in February 2025, which will include instructions and access codes for completing the declaration.
What Is the Deadline for the Vacant Unit Tax in Hamilton?
The Vacant Unit Tax (VUT) declaration deadline for all residential property owners in Hamilton is April 30, 2025. This is the final date by which property owners must submit their occupancy status for the 2024 tax year.
Missing this deadline can lead to significant financial penalties, as the property will automatically be classified as vacant, and the tax will be applied.
Key Dates to Remember
| Date | Event |
| Early February 2025 | Notice to Declare letters mailed to property owners |
| February 10, 2025 | Declaration period opens |
| April 30, 2025 | Final deadline for submission |
| First week of June 2025 | Vacant Unit Tax charges included in final property tax bill |
| June 30, 2025 | First Vacant Unit Tax payment due (for quarterly plans) |
| July 2, 2025 | Complaint and appeal period begins |
| September 30, 2025 | Second Vacant Unit Tax payment due (for quarterly plans) |
How to Ensure You Meet the Deadline?
To avoid unnecessary penalties, property owners should:
- Check their mail in February 2025 for the Notice to Declare letter
- Gather their roll number and access code, which are needed to submit the declaration
- Submit their declaration online at my.hamilton.ca or call 905-546-2573 if assistance is needed
- Confirm submission and keep a record of the declaration for future reference
The April 30, 2025 deadline is final, and no extensions will be granted. If a property owner has any doubts about whether their property qualifies as vacant or exempt, they should submit a declaration regardless to avoid automatic taxation.
How Can You Declare Your Property?
Declaring your Vacant Unit Tax (VUT) status is a mandatory process for all residential property owners in Hamilton. The City of Hamilton provides a simple and accessible system for property owners to submit their declarations.
The process can be completed online or by phone, and property owners will receive a Notice to Declare letter with the necessary details in February 2025.
Step-by-Step Guide to Declaring Your Property
1. Check Your Mail for the Notice to Declare Letter
- The City of Hamilton will send out Notice to Declare letters in early February 2025.
- This letter will contain your roll number and access code, which are required to complete the declaration.
- If you do not receive this letter, check your most recent property tax bill, which will also have the necessary details.
2. Submit Your Declaration Online
- Visit my.hamilton.ca to access the online declaration portal.
- Enter your roll number and access code from your Notice to Declare letter.
- Follow the on-screen instructions to declare whether your property was occupied or vacant in 2024.
- Submit the form and save a copy of your confirmation for future reference.
3. Declare by Phone (If Needed)
- If you cannot access the online system, call the Vacant Unit Tax team.
- Provide your roll number and other requested details.
- A city representative will assist you in completing the declaration.
Important Reminders
- Even if your property is occupied, you must still submit a declaration to confirm its status.
- Failure to declare by April 30, 2025, will result in an automatic classification as a vacant unit and a 1% tax on the property’s assessed value.
- Declarations must be submitted annually, even if the property’s status has not changed.
- If you own multiple properties, you must submit a separate declaration for each one.
Need Help with Your Declaration?
If you encounter any issues while submitting your declaration, you can:
- Email the City of Hamilton’s Vacant Unit Tax team at vacantunittax@hamilton.ca
- Call 905-546-2573 for direct assistance
- Visit hamilton.ca/VacantUnitTax for additional resources
By completing your Vacant Unit Tax declaration on time, you can avoid unnecessary penalties and ensure compliance with Hamilton’s new housing regulations.
Are There Any Exemptions to the Vacant Unit Tax?
While the Vacant Unit Tax (VUT) applies to most residential properties left unoccupied for more than 183 days in the previous calendar year, some exemptions allow certain properties to avoid taxation.
However, property owners must still submit a declaration to confirm their eligibility for an exemption.
Who Is Exempt from the Vacant Unit Tax?
A property may be exempt from the VUT under the following conditions:
- Principal Residence: If the property is the owner’s primary residence, it is not subject to the VUT, but a declaration is still required.
- Death of a Property Owner: If the owner passed away, the property may be exempt for the year following their death.
- Major Renovations: If the property was uninhabitable due to significant renovations (with a valid building permit), it may qualify for an exemption.
- Property Sale: If the property was sold during the year, it may be exempt if ownership changed.
- Owner in Long-Term Care: If the owner was hospitalized or living in long-term or supportive care, the property may be exempt.
- Court Orders Preventing Occupancy: If legal proceedings prevented the property from being occupied, an exemption may apply.
- Non-Profit Housing: Properties designated as non-profit housing are not subject to the VUT.
How to Apply for an Exemption?
- Property owners must declare their occupancy status and indicate their exemption eligibility.
- Additional supporting documentation may be required for exemptions.
- The City of Hamilton will review exemption claims, and false declarations may result in penalties.
Even if a property qualifies for an exemption, failure to declare by April 30, 2025, will result in the automatic application of the VUT. Property owners should ensure they complete their declaration to confirm their status.
What Are the Penalties for Non-Compliance?
Property owners who fail to declare their occupancy status by April 30, 2025, or provide false information may face financial penalties and legal consequences. The City of Hamilton enforces these measures to ensure compliance and to prevent tax evasion.
What Are the Consequences of Missing the Deadline?
- Automatic Classification as Vacant: If a declaration is not submitted, the property will be deemed vacant, even if it was occupied.
- Tax Charges Applied: A 1% tax on the property’s current assessed value will be added to the final property tax bill in June 2025.
- Penalties and Interest: Unpaid VUT amounts will accrue penalties 1.25% penalty applied on the first day of default and 1.25% monthly interest on overdue balances
- Additional Fines: Owners who fail to provide information or submit false declarations may face extra fines under the Vacant Unit Tax by-law.
- Legal Action: Non-payment of VUT may lead to further enforcement actions, including liens on the property.
How to Avoid Penalties?
- Submit your declaration on time (before April 30, 2025).
- Ensure all information is accurate to avoid fines.
- Pay the VUT charge if your property qualifies as vacant.
- If you believe you were wrongly charged, you may be able to appeal the decision during the complaint period starting July 2, 2025.
How Can You Look Up Your Property Taxes in Hamilton?
Property owners can check their property tax details, assessed value, and tax obligations using the City of Hamilton Property Taxes Lookup tool. This online system provides essential tax information, including VUT charges, due dates, and payment history.
Steps to Look Up Your Property Tax Information
- Visit the City of Hamilton’s Property Tax Portal: Go to hamilton.ca and access the Property Tax Lookup tool.
- Enter Your Property Details: Input your roll number (found on your property tax bill or Notice to Declare letter). Provide any additional required details to verify ownership.
- Review Your Tax Information: Check your current property tax balance, due dates, and past payments. Verify if the Vacant Unit Tax has been applied to your account.
Why Use the Property Tax Lookup?
- Ensure VUT charges are correctly applied.
- Confirm your property’s assessed value before the VUT is calculated.
- Check for outstanding balances to avoid penalties.
- Review your payment schedule and tax history.
Property owners should regularly monitor their property tax details to stay informed about any changes or additional charges. If discrepancies arise, they can contact the City of Hamilton for clarification before payment deadlines.
How Does the Vacant Unit Tax Impact Hamilton’s Housing Market?
The Vacant Unit Tax (VUT) is designed to address Hamilton’s housing crisis by encouraging property owners to either occupy or rent out their residential units instead of leaving them vacant.
By increasing the supply of available housing, the City of Hamilton aims to improve affordability and reduce the number of underutilized properties.
What Are the Potential Benefits of the Vacant Unit Tax?
- Increased Housing Availability: The VUT discourages speculative ownership, where properties are left empty for investment purposes. More homes will enter the rental market, helping to accommodate the growing population in Hamilton.
- Reduced Housing Costs: With more units available for rent or sale, there could be a stabilizing effect on rental and home prices. Similar taxes in cities like Toronto and Vancouver have led to an increase in rental listings.
- Reinvestment into Affordable Housing: Revenue from the VUT will be allocated to affordable housing projects, directly benefiting those in need. This initiative supports long-term solutions for low-income families and individuals struggling to find housing.
What Are the Potential Challenges of the Vacant Unit Tax?
- Financial Burden on Property Owners: Some owners, particularly those facing temporary vacancies, may struggle with the added tax burden.
- Enforcement and Compliance Issues: Ensuring that all property owners submit accurate VUT declarations will require strong enforcement by the city.
- Limited Immediate Impact: The housing market response may take time, as owners adjust to the new tax and make decisions about their properties.
Despite these challenges, the Vacant Unit Tax is expected to have positive long-term effects on Hamilton’s housing market by discouraging prolonged vacancies and ensuring that available housing stock is used effectively.
What Should You Do Next?
With the April 30, 2025 deadline approaching, residential property owners in Hamilton must act now to ensure compliance with the Vacant Unit Tax (VUT).
What Are the Immediate Actions for Property Owners?
- Locate your Notice to Declare Letter, which contains the required details for submission.
- Submit your declaration early through the designated online portal or by phone.
- Check if your property qualifies for an exemption and provide necessary documentation if required.
- Review your property tax statement once charges are applied to verify accuracy.
- Dispute incorrect charges by filing an appeal during the designated complaint period.
Why It’s Important to Act Now?
- Non-compliance results in automatic taxation, with a 1% charge on the assessed value.
- Late declarations will not be accepted, leading to penalties and interest charges.
- Revenue from the VUT supports affordable housing initiatives, benefiting the community.
For any concerns, property owners should reach out to the city’s tax department for assistance. Acting early ensures compliance and prevents unnecessary tax burdens.
Conclusion
The Vacant Unit Tax (VUT) is a crucial initiative aimed at improving housing availability in Hamilton. By ensuring that residential properties are occupied or put to productive use, the city hopes to address housing affordability challenges.
Every property owner must submit a declaration before April 30, 2025, even if their property is occupied. Failure to comply will result in an automatic classification as vacant, leading to a 1% tax on the property’s assessed value.
To avoid penalties, check your mail for the Notice to Declare letter, gather your roll number and access code, and submit your declaration online or by phone. If you have any concerns, contact the City of Hamilton’s VUT team before the deadline. Compliance is key to avoiding unnecessary tax burdens.
FAQs About Vacant unit Tax Hamilton
What is the purpose of the Vacant Unit Tax in Hamilton?
The Vacant Unit Tax (VUT) aims to increase housing availability by discouraging long-term property vacancies. Revenue generated from the tax will be reinvested into affordable housing initiatives in Hamilton.
Who is required to submit a Vacant Unit Tax declaration?
All residential property owners in Hamilton must submit a declaration, even if the property is occupied, rented, or exempt. Failure to declare will result in an automatic classification as vacant.
How much is the Vacant Unit Tax, and when does it apply?
The VUT is 1% of the property’s current assessed value and applies to properties vacant for more than 183 days in the previous calendar year. The first tax will be charged in June 2025.
How can I submit my Vacant Unit Tax declaration?
You can submit your declaration online at my.hamilton.ca using your roll number and access code, or by calling 905-546-2573 for assistance.
What happens if I don’t submit my declaration by April 30, 2025?
If you miss the deadline, your property will automatically be classified as vacant, and the 1% Vacant Unit Tax will be applied. Penalties and interest will also be added to unpaid amounts.
Are there any exemptions to the Vacant Unit Tax?
Yes, exemptions apply to principal residences, properties under renovation, owner hospitalization, property sales, court orders, and non-profit housing. However, a declaration is still required.
How can I check if my property has been charged the Vacant Unit Tax?
You can use the City of Hamilton Property Taxes Lookup tool at hamilton.ca by entering your roll number to view your tax details, payments, and VUT status.
