An annual tax will be levied on vacant Toronto residences, payable beginning in 2023. All Toronto residential property owners must submit a declaration of their property’s 2022 occupancy status by February 2, 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.
Though all homeowners are required to submit a declaration of occupancy status annually, 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
Vacant Home Tax Calculation
A Vacant Home Tax of 1% 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).
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.
Eligible Exemptions
A property may be left vacant and may be exempt from the Vacant Home Tax if you fall into one of the following criteria. Each of these criteria is further defined by the City of Toronto.
- Death of a registered owner
- Repairs or renovations
- Principal resident is in care
- Transfer of legal ownership
- Occupancy for full-time employment
- Court order
Penalties
If your property status declaration is not made by the declaration deadline of February 2, 2023, a fine of $250 may be issued.
Failure to make a declaration will result in your property being deemed vacant. Once deemed vacant, your property will be subject to the tax and you will be issued a Vacancy Tax Notice.
Interest applies to any overdue Vacant Home Tax amount at a rate of 1.25 per cent on the first day of default and on the first day of each month thereafter for as long as taxes or charges remain unpaid.
For more information on the Vacant Home Tax, please visit: https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/