Vancouver’s Empty Homes Tax

Vancouver’s Empty Homes Tax was initiated in 2017 to tackle housing affordability and availability issues in Vancouver. Homeowners in Vancouver must annually submit a declaration to ascertain whether their property is subject to the Empty Homes Tax.

Census data reveals that as of May 2016, over 25,000 City of Vancouver properties, accounting for 9.0% of all dwellings, were either unoccupied or occupied by temporary or foreign residents. With Vancouver facing one of the lowest rental vacancy rates in Canada, the city aimed to boost housing inventory and motivate homeowners to rent their available properties. To achieve this, they implemented a tax on homeowners who left their properties vacant.

Exemptions to Vancouver Empty Home Tax

If a property is unoccupied for more than six months of the current year, it will be subject to the tax unless an exemption applies. The majority of homeowners will not be subject to the tax, as it excludes principal residences or homes that are rented out on a long-term basis. Moreover, if your property is undergoing significant renovations or holds a development permit, you are exempt from the tax. Other exemptions encompass cases where a property is legally barred from occupancy by a court order, the property changed ownership during the preceding tax year, or if the primary homeowner passed away in the same year or was undergoing medical or supportive care. See the full list of exemptions on the city of Vancouver website.

The City of Vancouver has affirmed that the net revenue generated from the empty homes tax will be reinvested into affordable housing initiatives. This includes the development of low-income housing for individuals in need and other residential spaces aimed at enhancing accessibility to Vancouver for all residents.

Declaring your property status

Vancouver homeowners must submit an annual declaration to assess whether their property is subject to the Vancouver Empty Homes Tax. This requirement applies even if you reside in your home, necessitating a yearly declaration. Only one declaration is required per property each year. Find out when and how to make your declaration on Vancouver city website.

The Vancouver’s Empty Homes Tax was reviewed since implemented, at 1% of a home’s assessed value in 2017, and was bumped to 3% for 2023. Also the list of exemptions for properties has changed with numerous new exemptions to the tax. One of the new exemption is New Unsold Inventory Exemption.

The introduction of a new unsold inventory exemption allows developers to claim an annual exemption for unsold, vacant, new inventory starting from the year after obtaining the occupancy permit until the inventory is sold or occupied. This exemption aligns with the provincial Speculation and Vacancy Tax, addressing concerns raised by developers regarding the Empty Homes Tax (EHT) on unsold new housing inventory. The development industry has long advocated for this exemption, and it becomes particularly relevant in the current market conditions with rising interest rates and slower sales, leading developers to take more time to sell new inventory.

Quick Facts

• Vancouver city states that vacant properties in the city fell by 20 per cent in 2020-2021 and again in 2021-2022, both under the three per cent tax, but adds the drop may be related to the COVID-19 pandemic.
• The city says it has dedicated more than $115 million in revenue from the tax towards affordable housing since the measure was first implemented.

Check our other blogs under Real Estate 101 – that might give you answers about buying or selling a home.

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