Toronto Vacant Home Tax

The City of Toronto's Vacant Home Tax (VHT) "requires homeowners in Toronto to let the City know if their property is occupied or vacant by making a declaration every year." The City states that its goal is to increase the supply of housing by encouraging owners of vacant residential properties to sell or rent them, and that revenue goes to affordable housing. The tax is set out in Toronto Municipal Code Chapter 778, Taxation, Vacant Home Tax, under Part XII.1 of the City of Toronto Act, 2006.

The taxation year is the calendar year. By April 30 of the following year, the owner declares one of four statuses: principal residence of the homeowner, occupied by someone other than the owner, vacant with an eligible exemption, or vacant. A property is vacant if it "was vacant for six months or more during the taxation year." Tenants need a written agreement for a term of at least 30 days and a total of at least 6 months in the year.

A property declared vacant, or deemed vacant because no declaration was received, is taxed at 3% of its Current Value Assessment. A separate declaration is required for each property, including each condo unit. Only properties on the annual MPAC assessment roll need to be declared.

Residential properties in the City of Toronto that are on the annual assessment roll provided by the Municipal Property Assessment Corporation (MPAC). No declaration is required for property assessed fully as multi-residential, commercial or industrial, vacant land without a structure, or a parking space or condominium locker.

The City lists eight exemptions for a vacant property, each requiring supporting documents:

- Death of a registered owner: vacant six months or more due to the death of an owner; up to three consecutive taxation years. - Principal resident is in care: in a hospital, long term or supportive care facility for at least six months; up to two consecutive years. - Repairs or renovations: occupation prevented for at least six months, all necessary permits issued, and work "being actively carried out without unnecessary delay." - Transfer of legal ownership: a 100 per cent sale that closed in the taxation year. - Occupancy for full-time employment: the owner or spouse works full-time in Toronto for at least six months and has a principal residence outside the Greater Toronto Area. - Court order: an order prohibits occupancy for at least six months. - Vacant new inventory (from 2023): a developer's unsold new unit, actively offered for sale; up to two consecutive years. - Secondary residence for medical reasons (from 2024): principal residence outside the Greater Toronto Area.

Online through the City's declaration portal, by the owner or an authorized representative, using the customer number plus the address or 21-digit assessment roll number from the property tax bill, property tax account statement or Vacant Home Tax notice. One declaration per property. Status can be checked in the Vacant Home Tax section of the City's Property Tax Lookup.

Owners subject to the tax receive a Vacant Home Tax Notice; for 2025 these were issued in June 2026. The 2025 tax is due in three equal instalments on September 15, October 15 and November 16, 2026. Payment can be made through a bank (payee "Vacant Home Tax Toronto (City)", using the 21-digit assessment roll number), by mail with a cheque payable to the Treasurer, City of Toronto, or at the City's inquiry and payment counters. The City's pre-authorized payment program covers property taxes only, so the Vacant Home Tax is paid separately.

If no declaration is received by April 30, the City treats the property as vacant and sends a Notice of Assessment (Vacant Home Tax bill). Overdue amounts bear interest of 1.25 per cent on the first day of default and on the first day of each month after; unpaid tax is added to the property tax roll and collected like property taxes. The City states that "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." Chapter 778 (consolidation dated February 15, 2023) sets a fine on conviction of a minimum of $250 and a maximum of $10,000 for each offence.

A bill can be disputed with a Notice of Complaint. The deadline for 2025 bills is December 31, 2026; the deadlines for 2022, 2023 and 2024 have passed. A supplementary bill issued after an audit can be disputed within 90 days of the date on the bill. A complaint decision can be appealed within 90 days to the Appellate Authority (the City's Deputy Treasurer), in a written hearing; the City states that this decision is final.

Council amended Chapter 778 in October 2023 (Executive Committee Item EX8.7) to raise the rate from 1% for the 2022 and 2023 taxation years to 3% from the 2024 taxation year, to extend the death-of-owner exemption, and to add the vacant new inventory exemption. The City lists the secondary residence for medical reasons exemption as new beginning 2024. The City's Vacant Home Tax page (modified July 22, 2026) shows no rate change for the 2025 or 2026 taxation years.