BC Empty Homes Tax

What is it?

The Empty Homes Tax also known as the Vacancy Tax was introduced in 2017 to address housing affordability and availability challenges in Vancouver. Homeowners must submit an annual declaration to determine if their property is subject to the tax. Even if you live in your home, you must make a declaration every year.

Purpose of the Empty Homes Tax

The Empty Homes Tax was introduced to help return empty or under-utilized properties to use as long-term rental homes for people who live and work in Vancouver. It aims to relieve pressure on Vancouver’s rental housing market, which has one of the lowest rental vacancy rates in Canada. The tax is part of the 10-year Housing Vancouver Strategy, designed to address the housing crisis and make housing more livable and affordable for Vancouver residents. Net revenues from the tax are reinvested into affordable housing initiatives across the city.

Tax Rate

  • Properties deemed or declared empty in the 2023 reference year are subject to a tax of 3% of the property’s 2023 assessed taxable value.
  • Residential property owners must make a property status declaration every year. Properties deemed, determined, or declared empty in the 2022 reference year will be taxed at 3% of the property’s 2022 assessed taxable value.

Exemptions

There are several exemptions to the tax, including properties under renovation, properties whose owner is in medical care, and properties that are undergoing the probate process.

Penalties for Non-Compliance

Failure to make a property status declaration by the due date will result in:

  • A $250 by-law ticket for contravening section 5.2 of the Vacancy Tax By-Law.
  • The property being deemed vacant and subject to a tax of 3% of the property’s assessed taxable value.
  • Late and unpaid Empty Homes Taxes are subject to the same penalties as property taxes, including: a late payment penalty of 5%, daily interest on arrears, and the tax sale process.

Important Note

The Province of BC’s Speculation and Vacancy Tax is in addition to the City’s Empty Homes Tax. Residential property owners in Vancouver may have to pay both taxes. For more FAQ click here!

Impacts of the tax:

Isolating the effect of the Empty Homes Tax in a housing market as dynamic as Vancouver is challenging. However, since the tax launched in 2017 there have been positive trends.