Empty Homes Tax (Vancouver)

The Empty Homes Tax (EHT), also known as the Vacancy Tax, is a City of Vancouver municipal tax imposed on residential properties that are not used as a principal residence and are not rented out for at least six months of the calendar year. It is administered directly by the City of Vancouver under its own municipal bylaw authority, separate from the provincial Speculation and Vacancy Tax administered by the BC Ministry of Finance. Property owners must declare their property's status annually to the City of Vancouver to determine whether the tax applies.

The current Empty Homes Tax rate in Vancouver is 3% of the property's BC Assessment assessed value for the relevant tax year. This rate applies to properties deemed vacant after accounting for any applicable exemptions. Property owners should verify the current rate directly with the City of Vancouver, as municipal bylaw rates can be amended by City Council.

The Vancouver Empty Homes Tax is a municipal levy created under a City of Vancouver bylaw, while the provincial Speculation and Vacancy Tax is imposed under BC provincial legislation and administered by the BC Ministry of Finance across a broader set of designated BC municipalities and regions. A property in Vancouver may be subject to both taxes, but the City of Vancouver provides a credit mechanism so that amounts paid under the provincial Speculation and Vacancy Tax may offset the municipal Empty Homes Tax owing. Owners should review both obligations separately, as the exemptions, declaration deadlines, and calculation methods differ between the two regimes.

The City of Vancouver's vacancy tax bylaw provides a number of exemptions, including properties used as a principal residence by the owner or a permitted occupier, properties rented for at least six months of the year, properties undergoing major renovations with appropriate permits, properties subject to a court order restricting occupancy, and properties where the owner experienced a qualifying life circumstance such as a serious illness or death. Exemption eligibility and documentation requirements are set out in the City of Vancouver's bylaw, and owners must still complete their annual declaration and apply for any exemption by the City's stated deadline.

All residential property owners in Vancouver are required to submit an annual declaration to the City of Vancouver confirming whether their property was occupied as a principal residence or rented for the required minimum period during the previous calendar year. Failure to submit a declaration by the City's annual deadline results in the property being deemed vacant and the tax being assessed automatically. Owners should monitor the City of Vancouver's official communications each year for the applicable declaration period and deadline.

Yes, other municipalities including the District of West Vancouver and the City of North Vancouver have adopted their own vacancy tax bylaws, each with potentially different rates, exemptions, and declaration procedures. As a result, verifying local vacancy tax obligations with the specific municipality is a standard pre-purchase due diligence step in BC real estate transactions. Buyers and their advisors should contact the relevant municipal office directly to confirm current requirements before completing a purchase.

Under the Real Estate Services Act (RESA) and the rules established by the British Columbia Financial Services Authority (BCFSA), licensees are required to act in the best interests of their clients and to disclose material information relevant to a transaction. A licensee representing a buyer or seller in a Vancouver transaction should inform their client that the Empty Homes Tax may apply and recommend that the client seek advice from the City of Vancouver and a qualified tax professional to understand their specific obligations. Licensees must not provide tax advice themselves, but failing to flag the existence of a relevant municipal tax could implicate their professional duties under RESA.

Yes, individual strata lots that are residential properties in Vancouver are subject to the Empty Homes Tax in the same manner as freehold properties if they are not occupied as a principal residence and are not rented for the minimum required period. The Strata Property Act (SBC 1998, c. 43) governs the ownership structure of strata properties, but it does not override municipal tax obligations imposed by City of Vancouver bylaw. Strata lot owners must comply with annual declaration requirements independently of their strata corporation's obligations.

Yes, prospective buyers should factor in the potential Empty Homes Tax when assessing the total cost of owning a Vancouver property, particularly if they do not intend to occupy it as a principal residence or rent it for at least six months per year. In addition to the municipal EHT, buyers should also consider the provincial Speculation and Vacancy Tax and applicable Property Transfer Tax obligations under the BC Property Transfer Tax Act, which imposes rates of 1% on the first $200,000, 2% on the portion up to $2,000,000, 3% on the portion above $2,000,000, and an additional 2% on the residential portion exceeding $3,000,000. Buyers should obtain independent professional advice to understand their combined tax exposure.

If a Vancouver property owner fails to pay the Empty Homes Tax, the City of Vancouver has the authority under its bylaw to add the outstanding tax as a charge against the property, which can accumulate interest and penalties. Unpaid municipal taxes in BC can ultimately result in the property being placed on a tax sale list in accordance with the Community Charter (SBC 2003, c. 26), the legislation governing BC municipalities' tax enforcement powers. Property owners with outstanding EHT obligations should contact the City of Vancouver directly to understand their options for resolving the debt.