Ottawa’s New Vacant Unit Tax: What You Need To Know

Do you own a residential property in the City of Ottawa? Then you need to be aware that effective January 1st, 2023 the City of Ottawa has imposed a new vacant unit tax (VUT).

Homeowners must declare by March 16th if their home was owner-occupied, tenanted or vacant in 2022. If your property has been vacant for 184 days or more in 2022 you will be subject to an additional vacant unit tax in the amount of 1% of the assessed value of the home for that year.

There are some exceptions that would qualify your property to be exempt. For example, an owner’s death or if the property was undergoing substantial renovations. Check out the City of Ottawa’s website for further details and if any exemptions apply to you.

How do you file the declaration?

You should have received a declaration form in the mail by now. You will need your Roll number and Access Code which can be found on the declaration form or on your most recent property tax bill. When filing, you can submit directly through your My Service Canada portal or at this link to the online declaration form.

We know we all have enough paperwork to do, but best not to miss the March 16th deadline and let this one slip through the cracks!

If you are planning to buy or sell real estate this year be sure to discuss any implications the VUT tax may have on your purchase or sale with your realtor and/or legal counsel.