Real estate investor taxes across Canada: A cheat sheet

Canada’s housing deficit and affordability crisis has been a hot topic of discussion for quite some time. To try to “solve” this, various levels of government have implemented a variety of real estate investor taxes across Canada in what I would often call misguided attempts to help. It is highly debatable whether these federal, provincial and municipal tax grabs…or I mean policy decisions…have helped affordability or housing supply. 

For example, the glut of empty condos in Toronto could be rented on a short-term basis or provide a place to crash a few days a week while in the office, or by a business that sports tickets to share with clients who could then use the unit after a game.  And punishing builders, investors and landlords isn’t helping…maybe we should be working together?

GST/HST complexities can be crippling in the case of transitioning from short-term rentals to long-term…and just challenging for new builds or substantial renovations on long-term residential properties. That said, some relief has been initiated for qualifying situations.

So, I have compiled a high-level “cheat sheet” to provide an overview of these targeted taxes and fees. And, I haven’t even gotten into the myriads of municipal taxes and regulations (such as those restricting short-term rentals) on real estate investors…and the ever-popular development fees of different names.

Real estate investor taxes across Canada

Tax or Regulation Description
Anti-Flipping
  • Income from selling a residential property owned for less than 365 days is full taxable as business income. The principal residence exemption does not apply.
  • Details: BDO website
Prohibition on the Purchase of Residential Property by Non-Canadians Act
  • Bans foreign investors from buying residental property in Canada
  • Extended to January 1, 2027
  • Details: CMHC website
STRs and GST
  • Removes ability to claim GST input tax credits while creating the need to charge GST/HST on the sale of the property or change in from STR to long-term rental
  • Applies: Owners of short-term-rentals (STR) that are not compliant with local STR regulations. It is:
    • located in a province or municipality that does not permit short-term rentals to operate at that location, or
    • does not comply with provincial or municipal registration, licensing and permit requirements for running STRs

Underused Housing Tax (UHT)
  • 1% annual tax on the value of your property
  • Applies: Owners who are not Canadian citizens or permanent residents, and have either left their property vacant or “underused”
  • Details: Government website
Location Tax or Regulation Description
Province-wide Home Flipping Tax
  • As of January 1, 2025
  • Applies: Residential properties owned for less than 2 years
  • Details: BC website
Province-wide

Speculation and Vacancy Tax (SVT)
  • Annual tax on vacant homes in designated geographic areas of the province:
    • 2% (3% for 2026 and onwards) for foreign owners and “satellite families”
    • 0.5% (1% for 2026 and onwards) tax for Canadian citizens or permanent residents of Canada who are not members of a “satellite family”

Details: BC website 
Greater Vancouver Empty Homes Tax
  • 3% annual tax
  • Applies: Owners of vacant properties in Greater Vancouver.

Details:  Vancouver website 
Province-wide Additional Property Transfer Tax
  • 20% tax rate on fair market value of the owner’s share of a residential property in specific areas of BC
  • Applies: Foreign nationals, corporations and taxable trustees

Details: BC website
Province-wide Additional PST and Municipal and Regional District Tax (MRDT) on accommodation
  • 8% on short-term rental accommodations and up to 3% MRDT where applicable

Details: BC website
Location Tax Details
Winnipeg Accommodation Tax
  • 6% tax on short-term rental accommodations on all bookings
  • Details: Winnipeg website
Location Tax or Fee Description
Province-wide Non-resident Provincial Deed Transfer Tax
  • 10% on the higher of purchase price or assessed value
  • Applies: Non-residents buying residential property of 3 units or less or vacant residential land, or in some cases transferring a property
  • Details: Nova Scotia website
Province-wide Short-term Accommodation Registration Fee
  • Fee ranges depending on size and geography
  • Applies: All accommodations providing stays of 28 days or less
  • Details: Nova Scotia website
Location Tax or Fee Description
Province-wide Non-Resident Speculation Tax (NRST)
  • 25% tax on purchase of residential property that is anything from a single-family home to a sixplex in Ontario
  • Applies: Foreign nationals (people who aren’t Canadian citizens or permanent residents), foreign corporations, or foreign taxable trustees
  • Details: Ontario website
Hamilton Vacant Unit Tax
  • 1% of a property’s current assessed value
  • Applies: Properties vacant for more than 183 days
  • Details: Hamilton website
Ottawa Vacant Home Tax
  • 1% to 5% annual tax
  • Applies: Residential properties vacant more than 184 days per year
  • Details: Ottawa website 
Toronto Vacant Home Tax
  • 3% annual tax
  • Applies: Residential properties vacant for more than 6 months per year
  • Details: Toronto website 
Sault Ste Marie Vacant Home Tax
  • 4% annual tax on the assessed value of the property
  • Applies: Residential properties vacant more than 183 days per year
  • Details: Sault Ste Marie website
Windsor Vacant Home Tax
  • 3% annual tax on the assessed value of the property
  • Applies: Residential properties vacant more than 183 days per year
  • Details: Windsor website

Resources

For additional resources related to real estate investor taxes across Canada, and real estate tax saving opportunities, see:

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Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.