ReverseMortgageHamilton.ca covers the City rules that matter when a Hamilton homeowner moves into care or passes away. The Hamilton Vacant Unit Tax is one of them. It applies to every residential owner, and a home that’s empty because a parent moved into care still needs a declaration every year.
Every tax figure below comes from the City of Hamilton’s Vacant Unit Tax page.
How does Hamilton’s Vacant Unit Tax work?
The City charges 1% of a home’s current assessed value on any residential unit left empty more than 183 days in the previous year. Every owner must declare every year, including for the home they live in. A home with no declaration is treated as empty and charged the tax, plus a $250 non-declaration fee.
The tax is collected the same way as property tax. Declarations for 2025 ran from December 17, 2025 to May 15, 2026, and the City mailed the tax bills in June 2026. Unpaid tax carries a 1.25% penalty on the first day of default, plus 1.25% interest a month.
Almost every owner declares. In the City’s 2024 reporting, 97.8% of eligible properties submitted a declaration, and 2.5% of units were counted as empty, whether declared or deemed.
A simple calculation on the 1% rate
For example, a home assessed at $400,000 that’s wrongly treated as empty would be charged $4,000, which is 1% of $400,000. A missed declaration adds the $250 fee. If that bill then went unpaid, the penalty would be $50 on the first day of default, and about $50 more for each month after.
Which exemptions apply when a parent moves into care or dies?
Four exemptions matter most to families. A home is exempt while its principal resident lives in a hospital, long-term care or a supportive care facility. After an owner dies, the exemption covers the year of death and one more year. A sale to an unrelated buyer, and major renovations with a building permit, are also exempt.
- Care: covers the period the principal resident lives in a hospital, long-term or supportive care facility. Proof of residence in the facility may be asked for.
- Death of an owner: covers the year of death plus the one year after it, and no longer. A death certificate and estate papers, such as a will, may be asked for.
- Sale: the tax doesn’t apply in the year of the sale when the buyer is an unrelated person or company.
- Major renovations: covers work that makes the home impossible to live in for more than 183 days, as long as a building permit was issued.
An exempt home still needs a declaration every year, with the right exemption chosen. The City audits declarations, including ones that claim an exemption, and giving false information to avoid the tax can bring a fine of up to $10,000.
How the exemptions can follow each other
For example, if a parent moves into long-term care in 2025 and dies in 2026, the care exemption covers 2025. The death exemption covers 2026 and 2027. A home still empty and unsold in 2028 would need another exemption, such as a sale that year to an unrelated buyer.
Who can declare for a parent who can’t do it themselves?
The owner, or someone authorized to act for the owner, can declare. The City’s online portal asks whether you’re submitting as the owner or on behalf of the owner. Only one declaration is needed per property, even with several owners. To appeal for someone else, the City requires a signed written authorization form.
You’ll need the roll number and access code from the City’s Notice to Declare letter or the latest property tax bill. Declarations can be made online at my.hamilton.ca, by phone, by email, by mail, or in person at a Municipal Service Centre.
If a parent’s affairs are handled under a power of attorney, keep a copy of the tax bill with the other household papers. The access code is on it.
How do you appeal a Vacant Unit Tax bill?
You file a first appeal, then a second appeal if the first is denied. For 2025 bills, the first-appeal deadline was October 7, 2026, or 120 days from the billing date on your bill. That date has now passed for most owners, so contact the City’s Vacant Unit Tax team about any options left. A second appeal must follow within 60 days of the denial, and its decision is final.
- Late appeals for 2024 are open until December 31, 2026, with a $500 late appeal fee paid first.
- A decision comes within 90 days of the City receiving all documents.
- A successful appeal reverses the tax and any penalties and interest within 120 days of the decision.
- An unsuccessful appeal leaves the penalties and interest owing along with the tax.
What happens to a reverse mortgage when the last borrower moves into care?
The reverse mortgage becomes due when the last borrower moves into long-term care permanently. Families commonly have up to a year, 180 to 365 days depending on the product, to sell or repay, and interest keeps being added in the meantime. Nothing changes while a spouse who is also a borrower still lives in the home.
A hospital stay doesn’t make the mortgage due. When the mortgage becomes due, you can never owe more than the home is worth, provided the property taxes are paid, the house stays insured and repairs are kept up. It’s typically called the no negative equity guarantee.
Three things to do while the home is empty
- Tell the home insurer. Most policies stop covering a home that’s been unoccupied for about 30 days.
- Keep declaring every year, choosing the care exemption, then the death-of-owner exemption, as each one applies.
- Keep the property taxes paid. A reverse mortgage requires it, and the Vacant Unit Tax is collected on the same tax account. A City tax deferral, explained in Hamilton’s property tax deferral for seniors, and a reverse mortgage are one route or the other.
When Richard Hopkins, Mortgage Broker, compares every reverse mortgage lender in Canada, he also checks how long each product gives a family to sell. The options arrive in writing by email, so every family member can read them. For the wider picture, see what happens to the house with long-term care in Hamilton, the costs of a reverse mortgage in Hamilton, and paying for home care in Hamilton.
The bottom line
Hamilton's Vacant Unit Tax doesn't charge a home that's empty because its owner lives in care, or for the year of death and the year after, but only if someone declares it every year with the right exemption. When the last borrower on a reverse mortgage moves into care permanently, the family commonly has up to a year to sell or repay. Tell the insurer, keep declaring and keep the taxes paid.
Get a free estimate for your Hamilton home. It costs nothing, and there is no sales pressure.