Potential Vacant Homes Tax
Potential Vacant Homes Tax
What is a vacant homes tax?
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.
Working to help improve housing supply with a Vacant Homes Tax Study
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:
- completing public engagement to obtain input from residents and stakeholders; and
- undertaking a design and implementation study to develop the proposed VHT program framework.
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.
On January 27, 2025, the Town of Oakville approved a recommendation that staff proceed with a plan to implement a vacant home tax within the municipality, and that staff report back in Q3 2025 with more details on a proposed Vacant Home Tax program. To learn more, access the Town of Oakville's Staff Report: Oakville Vacant Home Tax (External PDF).
Please refer to the timeline below for further details.
Would I be affected?
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.
Vacant homes tax timeline
a visually laid out timeline for the vacant homes tax
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Council Direction: Council provided direction to staff to report back on a tax on vacant homes.
Update provided: Work underway to undertake a feasibility assessment for a potential vacant homes tax.
Feasibility assessment: Feasibility Assessment for vacant homes tax conducted by Ernst & Young LLP and reported to Council through FN-15-22 Optional Vacant Homes Tax in Halton Region.
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.
Update provided to Council: Results of Public Engagement provided in report FN-41-23 Optional Vacant Homes Tax in Halton Region Update. 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. 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.
Update provided to Council: On January 27, 2025, the Town of Oakville approved a recommendation that staff proceed with a plan to implement a vacant home tax within the municipality, and that staff report back in Q3 2025 with more details on a proposed Vacant Home Tax program. To learn more, access the Town of Oakville's Staff Report: Oakville Vacant Home Tax.
2022 Public meetings
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.