The City of Toronto's Vacancy Home Tax (VHT) was created to attempt to improve the supply of housing in the city.
Since the new bylaw came into effect in 2023, residential properties that are unoccupied for more than six months (cumulative) in a calendar year may be subject to a 1 % tax of their Current Value Assessment (CVA) , unless they meet one of the exemptions. 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).
Exceptions to the VHT include:
- Death of a registered owner
- Repairs or renovations
- Principle resident is in care (hospital, long-term or supportive care)
- Transfer of legal ownership
- Occupancy for full-time employment
- Court order
- Vacant new inventory
Homeowners can fill out the VAT online or download and submit a signed paper declaration form.
Find more information and to file, Click Here
Interesting statistics from last year:
- Last year's filings (in 2023 for the 2022 tax year), 2,336 owners declared their homes as vacant.
- Additionally, the city deemed 44,902 homes as vacant because no declaration was made.
- Once all late declarations were filed, the above number was reduced to 17,437 vacant homes.
- The city collected about $54 million in its first year of implementation. The funds are slated for affordable housing initiatives.
Consequences for late submissions:
- The municipality charges a late filing fee of $21.24
- There is also a fine of $250 that may be applied
- Most concerning is if a homeowner does not file a declaration, the city deems the property vacant by default and imposes a lien of 1% of the home's assessed value (On a $1million home, that is $10,000).
- False declarations of occupancy status or failure to provide information when requested may result in a fine of up to $10,000, in addition to payment of the tax.
- For those who owe the tax and pay late, Interest charges will apply to any overdue amount at a rate of 1.25% each month for as long as taxes or charges remain unpaid.
Vacant Home Tax Increase:
The VHT will be increasing from 1% to 3% of a home's assessed value in the 2024 taxation year, payable in 2025.
