Vancouver was the first Canadian city to tax empty homes. Its Empty Homes Tax started in 2017 at 1%, and for every year since 2021 it has been 3% of assessed value. The Province's speculation and vacancy tax sits on top of it, so an empty condo inside City limits pays two vacancy taxes to two governments, on two different declarations with two different deadlines. For owners who aren't Canadian citizens or permanent residents, the combined rate can reach 7% a year from 2027. This page adds the two taxes together and shows what the empty months are really costing.
What the Empty Homes Tax is
The Empty Homes Tax, also called the Vacancy Tax, is a City of Vancouver tax on Class 1 residential property that wasn't anyone's principal residence and wasn't rented for at least six months of the year. It applies only inside the City of Vancouver. It doesn't apply in Burnaby, Richmond, the North Shore, or at UBC and the University Endowment Lands.
One declaration is required for each property each year. It doesn't matter who the owners are or where they live, and the rate is the same for everyone. Unlike the provincial tax, there are no higher rates for foreign owners and no credit for BC residents.
The rate is 3%, not 5%
The tax started at 1% for 2017 to 2019. It was 1.25% for 2020, and has been 3% from the 2021 tax year onward. The tax for a reference year is 3% of the property's assessed taxable value for that same year. For the 2025 reference year, that's the 2025 assessment, which reflects values as of July 1, 2024.
You'll find websites quoting 5%. Council considered an increase in 2023 and chose to keep 3%. As of September 2026, the rate is still 3%. Rates can change by bylaw, so check the City's page before you rely on it for a future year.
What it costs once you add the provincial tax
| Empty all of 2026, assessed at $850,000 | Empty Homes Tax (City) | Speculation and vacancy tax (Province) | Total |
|---|---|---|---|
| Sole owner, BC resident and citizen | $25,500 | $4,500 | $30,000 |
| Couple 50/50, both BC residents | $25,500 | $4,500 | $30,000 |
| Sole owner, foreign national | $25,500 | $25,500 | $51,000 |
| Same foreign owner, 2027 | $25,500 | $34,000 | $59,500 |
For a BC-resident owner, that's about $2,500 a month to keep an $850,000 condo empty. That's close to what it would rent for.
Deadlines, late declarations and penalties
For the 2025 reference year:
- February 3, 2026: declarations were due.
- April 16, 2026: payment was due for properties that owed tax.
- Until July 3, 2026: a late declaration was still accepted, with a $250 bylaw fine.
- After that: a late declaration also brings a 5% penalty on any tax levied. The final cutoff for declaring 2025 with supporting evidence is July 3, 2030.
If no declaration is filed, the property is deemed vacant and taxed, even if you lived there all year.
For the 2026 reference year, the declaration period opens in the fall. Expect the deadline in early February 2027, with payment in the spring, and check the City's date when your notice arrives.
The provincial SVT runs on a separate schedule. Declarations are due March 31, with tax payable in early July. From the 2027 tax year, the Province also charges a $250 late-declaration penalty.
Put both dates in your calendar. Filing one doesn't file the other.
Exemptions
Occupancy. A property isn't taxed if, for at least six months of the year, either of these is true:
- It was the principal residence of the owner, or of someone living there with the owner's permission, such as an adult child.
- It was rented to arm's-length tenants in periods of at least 30 consecutive days. The six months don't have to be consecutive, and the tenant doesn't have to live there as their principal residence.
Special exemptions. The City also exempts properties that were empty for more than six months because of:
- full-time work in Vancouver, when the owner's principal residence is outside Greater Vancouver
- the owner or occupier being in hospital or supportive care
- the death of the owner, while probate is pending
- a sale during the year
- major renovation or redevelopment with permits issued and work carried out diligently
- a court order prohibiting occupancy
- limited-use property, such as a parking-only title
There's also an exemption for strata rental restrictions in place since 2016. Since BC removed most strata rental bans in 2022, it now rarely applies.
Every exemption needs evidence if you're audited. For example: tenancy agreements and rent receipts, permits, a letter from a care facility, or a title search.
Where the City and provincial rules differ
| Empty Homes Tax (City) | Speculation and vacancy tax (Province) | |
|---|---|---|
| Who declares | One declaration per property | Every owner, separately |
| Deadline | Early February | March 31 |
| Rate | 3% for everyone | 1% citizens and PRs, 3% (4% from 2027) foreign owners and untaxed worldwide earners |
| Credit | None | Up to $4,000 for BC residents, by ownership share |
| Family living there rent-free | Exempt as a permitted occupier's principal residence | Exempt under the non-arm's-length tenancy rules, if they live there 6+ months |
| Couples with two homes | Can have two exempt principal residences | Generally one principal residence per couple |
| Renovation | Permits must be issued; vacant 6+ months | Uninhabitable 90+ days, work proceeding |
A property can be exempt from one and taxed by the other. The calculator applies each set of rules separately. It also warns you when a use, such as a couple's second home, is treated differently by the two.
Short-term rentals don't help
Nights rented on Airbnb or similar platforms don't count toward the six months for either tax. Only stays of at least 30 days do.
In any case, Vancouver only allows short-term rentals in the operator's own principal residence, and BC's short-term rental rules add a provincial principal-residence requirement across most of the region. A condo run as a full-time short-term rental is not allowed in the first place, and it's taxed as empty under both regimes.
Buying or selling around New Year
The City's transfer-of-property exemption means a property sold during the year is exempt for that year. The new owner still has to declare.
The trap is a sale that completes between January 1 and the February deadline. The buyer can't file the previous year's declaration for the seller. If the seller doesn't file, the property is deemed vacant and the tax is levied against it.
Buyers completing in January should make sure the contract requires the seller to declare, or ask for proof that they have. Sellers should file before they hand over the keys.
Three situations we get asked about
A condo bought for a child who's studying. If your adult child lives in a Kitsilano condo as their principal residence for at least six months, it's exempt from the City tax as occupied by a permitted occupier. Under the provincial rules, it can qualify as a non-arm's-length tenancy.
If the condo sits empty over the summer, that's fine, provided the six-month test is still met. A condo on the UBC campus lands isn't in the City of Vancouver at all, so the City tax doesn't apply there. The provincial tax still can.
Snowbirds. A Vancouver home that's your principal residence stays exempt from both taxes, even if you spend the winter somewhere warm. The question is where you live, not whether you're there every day. Keep the paper trail that shows it: your driver's licence, your tax return address and your MSP registration.
A couple with a home in the city and one elsewhere. If one partner lives in the Vancouver condo for work and the other in a house in the Fraser Valley, the City can treat both as principal residences. The provincial rules generally allow one principal residence per couple, with exceptions such as work. In that setup, the Vancouver condo can be exempt from the City tax but still owe provincial tax, unless an SVT exemption applies. Declare each separately with care.
Has it worked?
The City reports that fewer than 1,000 properties were declared or deemed vacant for 2024. That's 979, a rate of 0.49%, down from 0.90% when the tax started.
The revenue goes to affordable housing initiatives. The tax is one of several measures that, together with the provincial SVT, are credited with moving thousands of homes into the long-term rental market.
For an individual owner, the lesson is simpler: at 3% plus the provincial tax, it rarely makes financial sense to keep a Vancouver home empty.
If you're paying it now
The options are the same as for the provincial tax, with bigger stakes:
- Rent the home for at least six months in 30-day-plus tenancies.
- Let a family member live in it as their principal residence.
- Move in.
- Sell.
For a unit you're holding for a child's future, a family occupant or a fixed-term lease may cover the years in between. If you're selling instead, our capital gains calculator shows the tax on the sale.
Mistakes we see with the Empty Homes Tax
Forgetting to declare a home you live in. An undeclared property is deemed vacant and taxed at 3%.
Filing the provincial SVT and assuming that covers the City. They're separate declarations to separate governments.
Counting short-term rental nights. Only 30-day-plus tenancies count, and full-time short-term rentals aren't allowed anyway.
Leaving a home empty while waiting for permits. The renovation exemption starts once permits are issued, not while they're pending.
Budgeting on a 5% rate you read online. It's 3%. Budgeting on the old 1% is just as wrong.
Completing a purchase in January without the seller's declaration. The tax attaches to the property.
Questions people ask us
What is the Vancouver Empty Homes Tax rate?
3% of the property's assessed taxable value, for every tax year since 2021. It was 1% for 2017 to 2019 and 1.25% for 2020.
When is the Empty Homes Tax declaration due?
In early February, for the previous year. The 2025 declaration was due February 3, 2026, with payment due April 16, 2026. Late declarations carry a $250 fine. After the July cutoff, a 5% penalty on the tax is added.
Do I have to pay both the Empty Homes Tax and the speculation tax?
If your property is in the City of Vancouver and doesn't qualify for exemptions under either, yes. They're separate taxes with separate declarations. For an $850,000 empty condo in 2026, a BC-resident owner would pay about $25,500 to the City and $4,500 to the Province.
Does the Empty Homes Tax apply in North Vancouver, Burnaby or Richmond?
No. It applies only in the City of Vancouver. Those municipalities are still subject to the provincial speculation and vacancy tax.
Is my home exempt if my adult child lives there?
For the Empty Homes Tax, yes, if it's their principal residence for at least six months. That counts as occupancy by a permitted occupier. For the provincial tax, it can qualify under the non-arm's-length tenancy rules.
Do Airbnb rentals count toward the six months?
No. Only rentals of at least 30 consecutive days count, and Vancouver only permits short-term rentals in the operator's own principal residence.
What if I sold my Vancouver property during the year?
A property sold during the reference year is generally exempt for that year under the transfer-of-property exemption. The declaration still has to be filed. If the sale completes in January, make sure the seller files for the previous year.
What happens if I don't declare?
The property is deemed vacant and charged 3% of its assessed value, plus a $250 fine. After the late declaration window, a 5% penalty applies. You can still declare with evidence for up to five years after the reference year.
778-918-5990
Paying to keep it empty?
Dan can price the property for sale and for rent, and connect you with a property manager for a six-month or longer tenancy. Then you can decide with real numbers instead of a tax bill. Your calculator inputs come along with the message.
Want the value first? Get a free home evaluation.
