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Vacation Home & Second Home Tax Calculator

Calculate property taxes on secondary residences, including non-resident surcharges and rental income offsets.

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Category Taxes & Expenses
E.g. Empty home tax or Non-homestead add-on
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About

Purchasing a vacation home or secondary residence introduces complex tax liabilities that differ from primary homesteads. Governments frequently apply higher mill rates, remove exemptions, or add "empty home" taxes to non-primary properties. This calculator separates standard levies from these specific surcharges.

Additionally, short-term rental income can alter the tax landscape. While income taxes are separate, some jurisdictions allow property tax portions to be deducted against rental revenue. This tool provides a preliminary estimate of net tax liability after potential rental offsets.

vacation home second home tax surcharge rental income cottage tax

Formulas

The calculation aggregates base tax, specific surcharges, and offsets.

{
Tbase = V × rstd Tsurcharge = V × rextra Ttotal = Tbase + Tsurcharge

If rental income is generated, the effective net cost is reduced: Costnet = Ttotal − (Irent × rmarg).

Reference Data

RegionStandard RateSecond Home/Non-Res SurchargeNotes
Florida, USA1.10%No Homestead Cap (10% max increase vs 3%)Non-residents lose the $50k exemption.
Paris, France0.1%60% Surcharge on T.H.Taxe d'Habitation surcharge for second homes.
Vancouver, BC0.29%3.0% Empty Homes TaxApplies if property is not rented 6mo/year.
Cornwall, UKBand Council Tax100% PremiumCouncils can charge double tax on second homes.
Vermont, USA1.86%Non-Homestead Rate HigherEducation tax rate differs for non-residents.
Spain (Non-Res)0.4% - 1.1%Imputed Income TaxTaxed on potential rent even if empty.
South Carolina0.55%Assess @ 6% vs 4%Assessment ratio 50% higher for 2nd homes.
Michigan, USA1.38%18-mill School TaxPrimary residents are exempt from this levy.

Frequently Asked Questions

A legal regime in many US states that reduces the taxable value of a primary residence. Vacation homes generally do not qualify, resulting in a significantly higher effective tax bill even if the tax rate appears identical.
Yes. Property tax is a holding cost based on ownership, not income. In fact, some regions (like Vancouver or parts of France) charge *extra* taxes specifically because the property is left empty.
Generally, yes. If the property is rented out for 14 days or more (US tax law rule of thumb), a prorated portion of expenses, including property tax, can usually be deducted from the rental income reported to tax authorities.
Yes. Foreign buyers often face stamp duty surcharges (e.g., UK, Singapore, Australia) and may be subject to "imputed income" taxes in countries like Spain or Switzerland, where you are taxed on the "potential" rent the property could generate.