Toronto faces a serious housing challenge as many properties sit empty for extended periods. Residential properties deemed vacant for more than six months are subject to additional taxation. To address this, the City introduced the Vacant Home Tax Toronto, requiring every property owner to submit a declaration of occupancy. This initiative discourages owners from leaving their homes unused while also supporting broader housing availability. In this article, you’ll find a complete guide to rules, deadlines, exemptions, tax rates, and payment procedures for 2025.
Vacant Home Tax Toronto: What It Is?
The vacant home tax in Toronto applies to residential properties left vacant for six months yearly. The City of Toronto introduced this property tax to increase housing availability and reduce vacant homes across neighborhoods. A property will be deemed vacant when owners fail to submit a declaration of occupancy status. Residential property owners must make a declaration annually using the secure online declaration portal provided by the city. Failure to declare occupancy status by the deadline can result in additional charges on the property tax account statement.
Moreover, a vacant home tax notice is included in the tax bill for properties subject to the tax. The city applies this measure to encourage better housing usage and discourage leaving properties vacant. Evidently, the vacant home tax creates financial accountability for every property owner in Toronto.
Who Needs to File a Vacant Home Declaration?
Property owners included under the rule:
Residential property owners in Toronto must submit a declaration of occupancy status each calendar year. The City of Toronto requires every property owner, regardless of actual occupancy, to make a declaration. Failure to submit a declaration will result in the property being deemed vacant and subject to the tax. Owners can use the online portal linked to their property tax account for convenience.
The declaration portal is secure, allowing submission without delays or errors. Moreover, the tax amount is applied to the property tax account statement once determined. Consequently, homeowners are responsible for ensuring their tax bill reflects accurate occupancy details.
Situations where a home may be deemed vacant:
A property will be deemed vacant if residential properties remain unoccupied for six months altogether. Homes vacant for six months without exemption are subject to the tax. If property owners fail to make a declaration of occupancy, the city considers the property vacant. Moreover, properties vacant without documentation submitted through the declaration portal are also deemed vacant.
In such cases, a vacant home tax notice will accompany the yearly tax bill. Additionally, inaccurate or missing declarations can increase the tax amount in the property tax account. Therefore, residential property owners must carefully submit accurate occupancy details within the deadline.
Changes to the Vacant Home Tax Toronto in 2025
The City of Toronto introduced significant adjustments to the vacant home tax in 2025.
- The tax rate increased compared to 2024, making vacant properties more expensive to hold.
- The declaration of occupancy status must now be submitted earlier than previous years.
- The city enhanced the secure online declaration portal to simplify submissions.
- The property tax account statement now includes clearer details about the vacant home tax notice.
- Properties vacant for six months without declaration face stricter penalties.
- Residential property owners must pay the vacant home tax promptly.
- These updates emphasize compliance and housing availability throughout the City of Toronto.
Deadlines for Filing the Declaration in 2024 and 2025
Property owners in Toronto must submit a declaration of occupancy for the 2024 taxation year. The deadline for filing is generally set in February 2025, ensuring properties vacant for more than six months are reported. Failing to submit a declaration may result in the property being deemed vacant and subject to this tax.
Vacant Home Tax Toronto Key dates:
The City of Toronto requires every residential property owner to submit a tax declaration by February 29, 2025. Properties vacant in 2023 and declared as vacant for six months will be subject to this tax in the 2024 taxation year, appearing on the property tax roll.
Consequences of missing the deadline:
- Property is deemed vacant if the owner fails to make a declaration.
- A hefty tax will be issued and added to the property tax bill.
- Owners of vacant homes may face overdue tax payments.
- Supplementary vacant home tax notice will be issued afterward.
Properties Exempt from the Tax
Certain residential properties in Toronto are exempt from the vacant home tax because they meet specific conditions. Owners are not required to pay if the property is undergoing renovations, used as a principal residence, or if the owner has recently passed away. Properties occupied by tenants under long-term leases are also exempt from the tax.
- Common exemption categories: death of the owner, court orders, full-time employment relocation, long-term tenancy.
- Documentation required for exemptions: driver’s license and Ontario identity card, tenant lease agreements, death certificate, or relevant court orders, submitted through the city’s secure online portal.
Toronto Vacant Home Tax Rates and Payment Details
For the 2024 taxation year, Toronto’s vacant home tax rate increased to 3% of the property’s assessed value. Previously, the tax was set at 1.25%, but Toronto City Council approved the increase to strengthen housing availability measures. This tax is based on the Current Value Assessment (CVA) listed on the property tax roll. Residential properties declared as vacant for more than half the year are subject to this tax, and a vacant home tax notice of assessment will be issued. The tax amount at a rate of 3% will appear on the property tax bill or property tax account. The measure was levied to reduce vacant residential units and encourage more active use of Toronto residences.
How to submit payment:
- Log into the city’s secure online portal.
- Enter the customer number from your tax bill.
- Select Vacant Home Tax payments option.
- Upload required documents including driver’s license and Ontario identity card.
- Confirm payment of the tax straightaway.
Impact of the Vacant Home Tax on Toronto Homeowners
Toronto’s vacant home tax significantly affects owners of vacant properties that remain empty for more than six months. The tax is levied on residential properties declared vacant, pushing owners to either occupy them or rent them out.
Consequently, Toronto residences that are declared vacant face additional tax burdens. The measure discourages homeowners who keep their properties vacant, ensuring better use of housing stock across the Greater Toronto Area.
Furthermore, homeowners who fail to declare may be determined vacant and face penalties. Overall, the tax undoubtedly influences property decisions, helping reduce speculative vacancies while supporting broader housing availability across Toronto City.
Conclusion
The Vacant Home Tax Toronto ensures residential properties are either occupied or contribute financially if left vacant. This measure, enforced by Toronto City Council, applies to owners of vacant residential properties who fail to submit a declaration. Exemptions exist, but clear documentation must be provided through the city’s secure online portal. Ultimately, this policy encourages more efficient housing use while reducing prolonged vacancies across Toronto. Do you believe this tax will positively impact housing availability in the Greater Toronto Area?
FAQs
1. Are exemptions available for certain circumstances?
Yes, exemptions include ownership death, major renovations, owner in medical care, full-time employment relocation, and others.
2. How is the tax calculated?
The tax equals the percentage of the Current Value Assessment (CVA) of the property.
3. Will the tax be added to my regular property tax bill?
Yes, the tax is added to your property tax bill or account and payable accordingly.
4. Can a new homeowner be responsible for the previous owner’s vacant home tax?
Yes, purchasers may inherit the tax liability unless the seller provides proof of declaration or payment.
5. How can I submit my declaration?
Use the City’s secure online portal with your customer number and assessment roll number.
