What your result means
The headline total is every annual cost you entered added together: mortgage payments if you carry one, property tax, insurance, a maintenance reserve, seasonal opening and closing, road or dock or snow removal, association fees, and any applicable municipal or provincial vacancy tax, minus any rental income you collect. The monthly figure divides that by twelve so you can compare it to a household budget line. The per-night figure divides the net annual cost by the nights you actually used the cottage, which is often the number that makes the real cost of occasional use visible: a cottage used 20 nights a year costs far more per night than the same cottage used 100 nights a year, even though the annual total is identical.
The mortgage line, when included, is calculated using the Canadian semi-annual compounding convention required by the Interest Act for most fixed-rate mortgages, not the monthly-compounding convention used in the United States. This produces a slightly higher effective rate, and therefore a slightly higher payment, than a US-style calculator would show for the same nominal rate.
Worked example
Take a cottage in the Muskoka region worth 650,000, with a 400,000 mortgage balance at 4.5% and 25 years remaining. Property tax runs 4,200 a year, insurance 2,200, and the owner sets aside a 1% maintenance reserve on the property's value, or 6,500 a year. Seasonal opening and closing costs 800, and road and dock upkeep runs 1,200. With semi-annual compounding, the mortgage payment on that balance and rate works out to roughly 2,214 a month, or about 26,567 a year. Add it all up: mortgage 26,567, property tax 4,200, insurance 2,200, maintenance 6,500, seasonal 800, and road/dock 1,200, for a total of 41,467 a year, or about 3,456 a month. If the owner used the cottage 60 nights that year, that is about 691 a night. This example is illustrative; use the calculator above with your own cottage's real numbers.
How this is calculated
| Location | Tax | Rate |
|---|---|---|
| Specified BC regions (resident owner) | BC Speculation and Vacancy Tax | 1% of assessed value |
| Specified BC regions (foreign owner or satellite family) | BC Speculation and Vacancy Tax | 3% of assessed value |
| City of Vancouver | Empty Homes Tax (stacks on top of BC SVT) | 3% of assessed taxable value |
| City of Toronto | Vacant Home Tax | 3% of Current Value Assessment |
| City of Ottawa | Vacant Unit Tax | 1% of assessed value (property vacant over 184 days), rising in later consecutive vacant years |
The federal Underused Housing Tax is not included: per the 2025 federal budget and Bill C-15, no UHT return or payment is required for the 2025 calendar year or any year after, though obligations for 2022 through 2024 can still be enforced. Municipal property tax mill rates themselves are not hard-coded, since they vary by municipality and change annually; enter your own municipality's current property tax bill. Mortgage payments use the standard Canadian amortization formula with semi-annual compounding converted to a monthly periodic rate. Sources: Canada Revenue Agency, the Interest Act (R.S.C., 1985, c. I-15), gov.bc.ca (Speculation and Vacancy Tax), City of Vancouver (Empty Homes Tax), City of Toronto (Vacant Home Tax), and City of Ottawa (Vacant Unit Tax).
What this calculator does not cover
This tool does not model the Ottawa Vacant Unit Tax's escalation for multiple consecutive vacant years, does not look up your specific municipality's property tax mill rate, and does not confirm whether your cottage actually qualifies for a vacancy-tax exemption, such as principal residence use, tenancy, or a seasonal access restriction; those exemptions vary by jurisdiction and can eliminate the tax entirely. It does not calculate capital gains on an eventual sale (see the principal residence exemption calculator), land transfer tax on purchase (see the land transfer tax calculator), or CMHC mortgage insurance premiums. It also does not account for income tax on rental income, only netting it against running costs for this estimate; for the tax side of renting your cottage out, read the guide on renting out your cottage. Anyone buying their first cottage may also want OwnersLog's guide to buying a cottage.
Questions
Do I owe the federal Underused Housing Tax on my cottage?
Not for 2025 or later years. The tax was effectively eliminated for these years in the 2025 federal budget and Bill C-15, though the CRA can still enforce obligations, penalties and interest for 2022 through 2024 if a return was required and not filed.
What counts as "vacant" for these municipal taxes?
Each municipality defines it differently and generally requires an annual occupancy declaration; failing to declare typically defaults to "vacant" and triggers the tax, even if the property was actually used. Check your municipality's declaration deadline directly.
Why does the mortgage payment differ from a US-based mortgage calculator?
Canadian law requires most fixed-rate mortgages to be quoted as compounded semi-annually, then converted to the actual payment frequency. A calculator built for US monthly-compounding conventions will understate the true payment on the same nominal rate.
Should I include a maintenance reserve even in years I spend nothing?
Most cottage owners find it useful to budget for maintenance as a steady annual reserve rather than only when a bill arrives, since major costs like roofs, docks and septic systems arrive irregularly but predictably over a cottage's life.
Does rental income change my vacancy tax exposure?
Often yes, since renting out the property for enough of the year is a common exemption from municipal vacancy taxes, but the exact rules and thresholds vary by municipality. This calculator only nets rental income against costs; confirm any exemption directly with your municipality.
Last reviewed 15 September 2026 against CRA guidance, the Interest Act, gov.bc.ca, City of Vancouver, City of Toronto and City of Ottawa sources. Next review 15 March 2027.
This calculator gives a general estimate from the figures you enter. It is not financial, tax, legal or mortgage advice. Rules change and personal circumstances matter, so confirm with a qualified professional before you act. See the full disclaimer.