The City of Hamilton has implemented a Vacant Unit Tax (VUT) for all residential properties. Property owners are required to file an annual declaration confirming the occupancy status of their property.
For the 2024 tax year, the declaration must be filed by April 30, 2025. If a declaration is not submitted, the City may assume the property was vacant and apply the tax.
Impact on Real Estate Transactions
If you are buying or selling a residential property in Hamilton, it is important to address the VUT requirement before closing. Your legal representative at Amik Law will ensure this requirement is handled properly, but your cooperation is essential.
To protect all parties involved, one of the following must be obtained prior to closing:
- A copy of the filed VUT declaration confirming the property was not vacant;
- A copy or screenshot of the vendor’s tax account with the City of Hamilton showing the declaration was submitted and that:
- The property was not vacant, or
- The property was vacant but the tax has been paid in full, or the property was exempt, or
- The tax is unpaid, but a holdback of funds will be made to cover the amount;
- A statutory declaration from the vendor confirming the declaration was submitted on time and addressing one of the above scenarios.
What You Need to Do
Our office will guide you through the process, but it is important that you provide any required documentation promptly.
This ensures we can close your transaction on time and without unexpected tax liabilities.
If you have any questions, please contact our real estate team.
