City of Toronto Vacant Home Tax – Have You Declared Your Property’s 2022 Occupancy Status?

In 2021, the City of Toronto introduced an annual tax on vacant residential properties with the stated goal of increasing the City’s supply of housing by discouraging owners from leaving their residential properties unoccupied. The tax is payable beginning in 2023.

A Vacant Home Tax (“VHT”) of one percent (1%) of the Current Value Assessment of the property will be imposed on all “residences” located in the City of Toronto that are declared, deemed or determined vacant. A residential 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 (6) months or more during the previous calendar year, or is otherwise deemed vacant under the City of Toronto by-law. The VHT is based on the property’s occupancy status for the previous calendar year. So, if your home was vacant in 2022, the tax will be payable in 2023.

All residential property owners in Toronto are required to complete a Vacant Home Tax Declaration of Occupancy Status annually. For the calendar year 2022, the Declaration must be received by the City of Toronto by February 2, 2023. Declarations should be made through the City’s online declaration portal. In addition to a fine of up to $10,000 for each offence, homeowners who fail to submit the Declaration by the deadline risk having their property deemed vacant and thus, subject to the tax.

Exemptions are granted under certain circumstances, including where the registered owner has died, the principal resident of the residence is in hospital or long-term care, or the property is undergoing major repairs or renovations and certain criteria are met. If you are unsure of whether an exemption applies in your situation, you should contact the City of Toronto.

Please note that a Declaration is not required if the property does not contain a residential unit. A residential unit is comprised of one or more self-contained units (must have a dedicated washroom and kitchen).

For more information, and to submit your Declaration online, visit the City of Toronto’s Vacant Home Tax website.