Vacant Home Tax
An annual tax will be levied on vacant Toronto residences, payable beginning in 2023.
A property is considered vacant if it was not used as the principal residence by the owner(s) or any permitted occupant(s), or was unoccupied for a total of six months or more during the previous calendar year. Properties may also be deemed (or considered to be) vacant if an owner fails to make a declaration of occupancy status as outlined in the bylaw .
The goal of the City of Toronto’s Vacant Home Tax (VHT) is to increase the supply of housing by discouraging owners from leaving their residential properties unoccupied. Homeowners who choose to keep their properties vacant will be subject to this tax.
Though all homeowners are required to submit a declaration of occupancy status, the tax does not apply to:
- properties that are the principal residence of the owner
- properties that are the principal residence of a permitted occupant or tenant
- properties that qualify for an exemption
If required, homeowners can download and submit a signed paper declaration form. Find more information about submitting a paper form under How to Declare below.
Revenues collected from the Vacant Home Tax will be allocated towards affordable housing initiatives.
How It Works
Mandatory Declaration of Occupancy Status
All residential property owners in Toronto will be required to declare the occupancy status of their property(s) annually, even if they live there. Declarations must be made by the homeowner or someone acting on behalf of the owner. The declaration will determine whether the Vacant Home Tax applies and is payable.
Vacant Home Tax Calculation
A Vacant Home Tax of one per cent of the Current Value Assessment (CVA) will be imposed on all Toronto residences that are declared, deemed or determined vacant for more than six months during the previous year. For example, if the CVA of your property is $1,000,000, the tax amount billed would be $10,000 (1% x $1,000,000).
The tax is based on the property’s occupancy status for the previous year. For example, if the home is vacant in 2022 the tax will become payable in 2023.
How to Declare
To make a declaration you will need your 21-digit assessment roll number and customer number from your property tax bill or property tax account statement.
Declarations of occupancy status should be made through the City’s secure online declaration portal. If required, homeowners can complete a paper declaration form . The paper form must be completed in full and received by the City of Toronto before the deadline to avoid being issued a fine and having your property deemed vacant. Incomplete forms will not be accepted. The submission address is on the bottom of the declaration form. Please be aware of Canada Post delivery times. For the best user experience, use the free Adobe Acrobat Reader software to complete and save the fillable form.
For residential properties that are not occupied by the homeowner(s), an audit may be required. If the City conducts an audit, owners may be required to submit information or documentation about tenants and/or permitted occupants to confirm occupancy during the taxation period.
For residential properties declared as vacant for six months or more during the taxation year and without an eligible exemption, owners will be required to pay the Vacant Home Tax.
Owners of properties subject to the tax will be issued a Vacant Home Tax Notice in March/April and payment will be due on May 1.
Residential properties will be deemed vacant if the owner fails to make the annual declaration by the deadline and/or provide supporting documentation.
If there is an error in the declaration you submitted, you can:
- submit a new declaration prior to the February 2 declaration deadline
- file a Notice of Complaint if it is after the declaration deadline
Failure to declare or making a false declaration may result in a fine of $250 to $10,000.