A vacant home tax is an additional property tax charged on residential properties left unoccupied for extended periods, aiming to discourage vacancy and bring housing units to market. Vancouver implemented Canada's first empty homes tax in 2017, with Toronto following. Owners must declare occupancy status annually, with penalties for false declarations. Tax rates (often 1-3% of assessed value annually) make leaving properties empty expensive. Exemptions may apply for renovations, estate settlements, medical situations, or other circumstances. Revenue typically supports affordable housing programs. Effectiveness debates consider whether taxes significantly reduce vacancy versus being absorbed as ownership costs. Vacant home taxes reflect municipal responses to housing affordability crises, acknowledging that empty homes while housing is scarce represents market failure.