Empty Homes Tax FAQ

The Empty Homes Tax is calculated annually and is based off the property’s assessed taxable value in the previous tax year. For the 2021 tax year, the Empty Homes Tax rate is 3%. 

From 2017 to 2019 the rate was 1% of a property’s assessed taxable value, and in 2020 the rate was 1.25%

For more information, review the:

• Report to Council on tax rate increase (November 2020) PDF file (127 KB)
• Report to Council on recommended approach (November 2016) PDF file (1.1 MB)
• Report to Council on emerging approach (September 2016) PDF file (269 KB)

The Empty Homes Tax only applies to Class 1 Residential External website, opens in new tab properties within the city of Vancouver.

If your property is located in a municipality that does not fall within the city of Vancouver, such as the University Endowment Lands, Burnaby or Surrey, the tax will not apply.

If your property is within the boundaries of the city of Vancouver but is not solely classed as a Class 1 Residential property, the Empty Homes Tax will not apply and you are not required to make an annual property status declaration.

Important note  Our Empty Homes Tax is separate from the provincial government’s Speculation and Vacancy Tax. If you have an enquiry about the Province's tax, please refer to the Province External website, opens in new tab or call 1-833-554-2323.

Properties are considered to be vacant if they have been unoccupied for more than six months during the tax year (Jan 1 – Dec 31).

Failure to make a property status declaration will result in a property being deemed vacant and therefore subject to the Empty Homes Tax.

A parcel refers to a taxable piece of property.

Each parcel is identified by a unique folio number. 

For purchase and sales of residential properties in Vancouver that are closing during the declaration period (November to February):

• If the closing is between the opening of the declaration period in November and December 31 of the vacancy reference year, it is recommended that the property status declaration be made by the vendor prior to the transfer of the property.
• If the closing is between January 1 and the closing of the declaration period in February, the property status declaration should/must be made by the vendor prior to the transfer of the property. As the property status declaration is for the prior vacancy reference year, only the vendor will have knowledge of the property’s status.  

The tax certificate will show whether a declaration has been made, what has been declared and whether there is a tax liability. 

Learn more about buying and selling property

Note Effective for the 2019 tax year and beyond, the exemption for property transfer will be tied to proof of payment of the property transfer tax.

Buyers of residential property should consider requesting the following to be included as additional terms in the contract of purchase and sale:

• That the seller of the property provide a copy of the completed and filed property status declaration;
• That the seller provide a statutory declaration at closing confirming the filed property status declaration is true and correct;
• An express representation and warranty confirming that the property has not been vacant (as defined by the Vacancy Tax Bylaw) for more than six months during the current or prior year;
• Providing that the City has not yet determined if a property is subject to the tax, provide for a holdback of the potential tax pending the City’s determination;
• Where the property is clearly subject to the Vacancy Tax, provide that an adjustment be carried out by the Buyer’s conveyancer and the Vacancy Tax will be borne solely by the seller.

Learn more about buying and selling property

If the ownership of a property was transferred in the tax year, will the Empty Homes Tax apply?

The Empty Homes Tax will not apply to residential properties where the legal ownership was transferred during the reference period (the property was sold) and a new Land Title Number was issued. The registered owner is still required to submit a property status declaration and declare that this exemption applies.

The use of “transfer” is based on the definition of “transfer” in the Land Title Act, being a conveyance, a grant, and an assignment. The exemption does not apply to properties that were issued a new Land Title Number solely because of a name or address change.

If a property was empty because it was listed for sale and was not sold, will the Empty Homes Tax apply?

If a property was unoccupied for more than six months of the year solely because it was listed for sale, the Empty Homes Tax will apply; however, the registered owner is still required to submit a property status declaration. There is no exemption for property that is empty solely because it is listed for sale.

Note This information reflects the changes to the tax certificate’s Empty Homes Tax section as of January 25, 2018.

What information will be on the tax certificate with respect to the Empty Homes Tax?

The tax certificate will include the following:

• whether a declaration has been submitted,
• if a declaration has been submitted, the declared status of the property,
• any potential liability,
• amounts for levy, penalty, payment and adjustment amounts,
• the outstanding amount owing,
• whether the property was selected for an audit*,
• whether a complaint has been submitted.

*Note: a property may be audited up to two years after the vacancy reference period.

Will there be any indication on the tax certificate that the property is eligible for the transfer of property exemption if the property is sold during the vacancy reference period?

There is general information about the Empty Homes Tax on the tax certificate header, however the details provided on the tax certificate will be specific to the declared property status, amount owing, any potential liabilities and whether the declaration is under audit, complaint, or review.

Will there be any indication on the tax certificate of whether or not a property status declaration has been made for the property?

If a property status declaration was made during the declaration period, the tax certificate will indicate if a property is declared occupied, declared exempt or declared vacant. During this period an undeclared property will remain in pending status and the tax certificate will warn: “A declaration must be submitted prior to the completion of sale of this property otherwise the property will be deemed vacant and subject to the Vacancy Tax”. If a declaration is not submitted by the due date, the property will be deemed vacant and subject to the Vacancy Tax, so this is a recommendation wherever possible.

After the declaration period closes, the tax certificate will indicate if a property is:

• declared occupied,
• declared exempt,
• declared vacant or undeclared (deemed vacant).

The potential liability will reflect the levy amount based upon the current assessed value of the property and any other levies, penalties or miscellaneous charges.

If the property is under audit, complaint or review, will the tax certificate indicate that the property is undergoing each process and will the potential liability be displayed?

If the property is undergoing audit, complaint or review, the tax certificate will display the declaration status and state that the audit, complaint or review is “open”.

If a property is undergoing audit, the tax certificate will indicate any potential liability. If a property is undergoing complaint/review, the tax certificate will remain as-is and indicate the status of the complaint or review because a complaint/review would only occur on property that is deemed vacant and will therefore show in the Billing Summary section as a levy. The exception to this is that if a complaint/review is occurring on a property that has declared vacant and has not yet been billed, it will show as a potential liability.

How will the liability appear on the tax certificate for a property that is declared vacant?

If a property is declared vacant, but a bill has not yet been generated, the tax certificate will show 1.25% of the property’s assessed taxable value as a potential liability. Once a bill has been issued, the Vacancy Tax amount will appear as a levy under the Balance Summary section.

How will an outstanding Vacancy Tax amount be displayed on the tax certificate when it has been added to the property tax account as arrears?

Any Vacancy Tax balance at the end of the following year will be added to property taxes and be displayed on the tax certificate as property taxes in arrears.

Can a new owner rely solely on the tax certificate which states that a declaration has been made where the property status is declared occupied? Will the new owner be expected to provide evidence or information to support a previous owner’s property status declaration?  

Where there is a transfer of legal ownership of property that closes outside of the vacancy reference period (e.g. the purchase and sale agreement was entered into in 2017 but the transaction does not close until 2018), the exemption for the transfer of property does not apply.  If the property was vacant, the City may still impose the Empty Homes Tax and this should be accounted for during the conveyancing.

Buyers of residential property should consider requesting that the seller provide a statutory declaration at closing confirming the filed property status declaration is true and correct to be included as additional terms in the Contract of Purchase and Sale.

Pursuant to the Vacancy Tax Bylaw, the Collector of Taxes may audit up to two years after the applicable vacancy reference period and request an owner to provide evidence or information to support a property status. If the Collector of Taxes reviews the evidence or information and determines that the declaration was false, then the property would be subject to the tax.

Any penalties for non-declaration would be applied against the owner(s) on record who received a notification to declare for the reference period and who failed to make a declaration. A new owner would not be responsible for these penalties.

Additional fines for false information or evidence would be applied against the owner(s) who submitted the false property status declaration and not the property.

Will the Vacancy Tax account always show on the tax certificate?

If a property is not subject to the Empty Homes Tax because it is not solely Class 1 residential, it is tax exempt or it is excluded based on the definition of residential property in the Vacancy Tax Bylaw, then there will not be a Vacancy Tax section on the tax certificate.

If a property is subject to the tax, will the Vacancy Tax amount show on the property inquiry website (vancouver.ca/propertyinquiry) that is available to the public?

The Vacancy Tax amount or potential liability will not be displayed on these publicly available reports. All properties will have a note within both the Property Inquiry Report and the Account Balances Report that states, “Any liability for Vacancy Tax is not included as part of this report. For more information on Vacancy Tax, visit Vancouver.ca/eht. For questions, call 3-1-1”.

If a property has joint owners, is each owner required to make a property status declaration?

An Empty Homes Tax property status declaration is required for each parcel of Class 1 residential property and only one registered owner can submit the declaration. Any additional owners will not be able to submit a second property status declaration.

When do owners get instructions and an access code to make a declaration?

Owners of Class 1 residential property will receive instructions on how to make a declaration with their advance property tax notice each year. Access codes are issued to registered owners regularly as part of the tax administration process. When a property transfers to a new owner, a new access code will be issued and the previous owner’s access code will expire.

The access code for a Vacancy Tax account and property tax are the same. To avoid possible delays with mailing, new owners can contact 3-1-1 to setup an online property services account and sign up for eBilling to receive the notification by email.

When a property sale has occurred, which owner can make a declaration, provide audit submissions, submit a complaint or request a review?

Only the current registered owner has the ability to provide submissions related to the Vacancy Tax Bylaw. The current owner is the registered owner - on title, on the property tax roll and has a valid access code with the City of Vancouver.

Is a property status declaration still required if the property is sold?

All owners of residential property in the City of Vancouver are required to make a property status declaration to determine if the property is subject to the tax. If legal ownership of the property changed, a property status declaration is still required and the registered owner can claim the title transfer exemption.

Note Effective for the 2019 tax year and beyond, the exemption for property transfer will be tied to proof of payment of the property transfer tax.

For example, if the property is selected for audit, the City may request evidence including a title search proving that a new title number was issued and legal ownership of the property changed during the reference period.

Does the transfer of property exemption apply when an owner submits an address or name change as a transfer at the Land Title Office?

The exemption applies when there is a title transfer resulting in a new title number being issued. The use of “transfer” is based on the definition of “transfer” in the Land Title Act, being a conveyance, a grant and an assignment.

Note Effective for the 2019 tax year and beyond, the exemption for property transfer will be tied to proof of payment of the property transfer tax.

If a property sale is completed after the declaration period has opened, who is responsible for making a property status declaration?

Property status declarations are to be made by the seller prior to the transfer of the property.

What if a property is sold and the previous owner did not make a property status declaration?

If the legal ownership of the property transferred prior to December 31 and the City has issued an access code to the current owner, the current owner can make a property status declaration for a transfer of property and can claim the title transfer exemption.

Learn more about buying and selling property

Note Effective for the 2019 tax year and beyond, the exemption for property transfer will be tied to proof of payment of the property transfer tax.

What is meant when a status is either “deemed”, “declared”, or “determined”? 

A property is deemed vacant when an owner fails to make a property status declaration. A property status is declared per each property status declaration. A property status is determined to be either taxable or not taxable by the Collector of Taxes on a review of the property status declaration or through the audit process. A determination can also be made by the Vacancy Tax Review Officer on review of a notice of complaint, or the Vacancy Tax Review Panel, in considering a review request.  

If a property is subject to the Vacancy Tax plus fines and penalties due to a failure to declare, who is responsible for the liability?

Vacancy Tax is assessed on a property and therefore any unpaid Vacancy Tax and late payment penalty remains as a liability on the Vacancy Tax account or, if left unpaid, in subsequent years on the property tax account. A change in ownership does not relieve the new owner of this liability. If a property is declared vacant or the City has not yet determined whether a property is subject to the tax, it is recommended to provide a holdback for 1% of the previous year’s assessed value pending the City’s determination.

If ownership changed and a property status declaration was not submitted to the City by the due date, the bylaw fine for a failure to declare will be issued to the owner(s) on record who received a notification to declare for the reference period and who failed to make a declaration. For example, if an owner changed after December 31, and the previous owner did not declare, then the previous owner would be responsible for the bylaw penalty amount.

If the City determines that the property status declaration is false or non-compliant due to failure to comply with the audit process and the property is subject to the Vacancy Tax and a penalty of up to $10,000 a day of the continuing offence, who is responsible for the liability?

Vacancy Tax is assessed on a property and therefore any unpaid Vacancy Tax and late payment penalty remains as a liability on the Vacancy Tax account or, if left unpaid, in subsequent years on the property tax account. A change in ownership does not relieve the new owner of this liability. If the City has not yet determined whether a property is subject to the tax, it is recommended to provide a holdback for 1% of the previous year’s assessed taxable value pending the City’s determination.

The owner(s) responsible for the declaration and who failed to provide the evidence and information is guilty of an offence under the bylaw and is liable to the penalties imposed – punishable on conviction by a fine of not less than $250.00 and not more than $10,000 per day. The fines are not imposed on the property, but instead follow the owner who submitted the property status declaration. The previous owner who made the false declaration would be responsible for any fines.

What is the complaint process regarding bills received by new owners for prior owners’ outstanding liabilities?

A registered owner who receives a Vacancy Tax notice or supplementary Vacancy Tax notice may submit a complaint regarding the decision to impose the Vacancy Tax on the grounds that:

1. an error or omission on the part of the City resulted in the imposition of the tax and/or
2. an error or omission on the part of the registered owner in completing the property status declaration resulted in the imposition of the tax.

The process is not open for a new owner to submit a complaint solely on the basis that they were not the owner during the applicable vacancy reference period.  As such, the new owner would need to gather information from the previous owner to support a claim that there was an error resulting in the tax and obtain a statutory declaration or affidavit from the seller as part of the purchase and sale as to the status of the property (together with any substantiating documentation) which could be forwarded with the notice of complaint. It is recommended that the buyer provide for a holdback of the potential tax pending the City’s determination, or where the property is clearly subject to the Vacancy Tax, provide that an adjustment be carried out by the buyer’s conveyancer and the Vacancy Tax will be borne solely by the seller.