Halton is considering a potential vacant homes tax that could encourage owners of unoccupied homes to rent or sell, helping to improve the number available for residents.
A vacant homes tax is an additional tax on unoccupied homes. It could encourage owners to sell or rent them out, helping to increase the number of homes available in Halton. This type of tax is commonly implemented in communities with high housing prices and a low supply of homes for sale or rent.
Housing supply and affordability can be a challenge for those who want to live in our growing community. One way we are addressing this issue is studying how a vacant homes tax could help improve housing supply and contribute to Halton's Comprehensive Housing Strategy.
In June 2021, Halton Regional Council directed staff to report back on a potential tax on vacant homes. A feasibility assessment undertaken by Ernst & Young LLP found that a vacant homes tax could help reduce the number of vacant homes in Halton. In April 2022, Regional Council directed staff to develop a proposed vacant homes tax program framework, which includes:
On October 23, 2024, through Report No. FN-26-24 Halton Regional Optional Vacant Home Tax Program (PDF file), staff provided Council with the findings of the study that was completed by Ernst & Young LLP on an optional Vacant Homes Tax Program in Halton Region. At the time of writing the report, the City of Burlington, and the Towns of Milton and Halton Hills approved resolutions that they be excluded from any potential by-laws that would implement a vacant home tax within their respective municipalities. If the Council of the Town of Oakville approves to implement a Vacant Homes Tax, it will be required to provide a supportive statement to Halton Region indicating its participation in the program.
Please refer to the timeline below for further details.
The potential vacant homes tax would only apply to unoccupied homes. It will only affect those who own a home in Halton that is vacant.
Council Direction: Council provided direction to staff to report back on a tax on vacant homes.
Update Provided: Work underway (PDF file) to undertake a feasibility assessment for a potential vacant homes tax.
Feasibility Assessment: Feasibility Assessment for vacant homes tax (PDF file) conducted by Ernst & Young LLP and reported to Council through FN-15-22 Optional Vacant Homes Tax in Halton Region (PDF file).
Public Consultation: Engaged with the public to gather input through an online survey and 2 online zoom webinars. The consultation concluded on November 30, 2022, and staff are reviewing community feedback.
Design and Implementation Study: Develop the proposed framework for the vacant homes tax, incorporating feedback received through public engagement.
Update provided to Council: Results of Public Engagement provided in report FN-41-23 Optional Vacant Homes Tax in Halton Region Update (PDF file). Council passed a motion to pause work and to request the Province to establish the framework and policy for a Vacant Homes Tax.
Update provided to Council: FN-12-24 Update on the Optional Vacant Homes Tax in Halton Region – Provincial Policy Framework released (PDF file). Council approved that staff resume work on the study.
Update provided to Council: FN-26-24 Halton Regional Optional Vacant Home Tax Program. Town of Oakville to provide supportive statement to participate in the program. The City of Burlington and the Towns of Halton Hills and Milton will not participate in the program.
The public engagement conducted in 2022 featured two virtual meetings open to all interested residents, businesses and stakeholders. To view recordings of these sessions, please play the videos below.