Program Overview
What is the Vacant Home Tax Program?
The Vacant Home Tax Program, first implemented in 2022, is designed to address Toronto's housing supply issues by encouraging residential property owners to make their vacant properties available for rent or for sale. Owners who choose to keep properties vacant will be subject to this tax. Revenue collected from the program supports the delivery of important housing programs to preserve and increase the supply of permanent affordable homes.
How is the Vacant Home Tax calculated?
The Vacant Home Tax rate is 3% of the property’s Current Value Assessment. This is intended to motivate owners of vacant residential properties to either sell or rent out their properties.
Why is an annual declaration necessary instead of a one-time declaration?
Homeowners need to let the City know if their residential property is vacant or occupied every year to ensure the accuracy of the property’s occupancy status, as this status can change from year to year. This may occur where the property is not the primary (main) residence of owner. Requiring an annual declaration helps maintain the integrity of the Vacant Home Tax Program and ensures that the tax is applied correctly.
Why do residents need to declare if their property is not vacant?
Residents are required to declare their property's occupancy status—even if it is not vacant—to ensure accurate records and proper management of property occupancy information for the Vacant Home Tax Program. This process helps maintain the integrity of the program and ensures that all properties are correctly classified as occupied or vacant. By making an annual declaration, homeowners are helping to improve the availability and affordability of housing in Toronto.
What qualifies as a “vacant” home?
A home is considered vacant if it is not the owner's principal (main) residence or the principal residence of someone they permit to live there, or if it was not occupied by tenants for more than six months during the calendar year. A property may qualify for an exemption from the Vacant Home Tax if certain conditions apply. If the property is the owner’s main residence (where they reside and conduct their daily affairs, receive mail, pay bills, etc.) it can remain unoccupied and would not be considered vacant.
What are the exemptions to the Vacant Home Tax?
Vacant Home Tax exemptions include properties the meet the following criteria:
- property undergoing major repairs or renovations
- legal transfer of ownership occurred within the taxation year
- owner(s) is/are in an extended, long-term care facility (can be claimed for two consecutive years)
- registered owner passed away in the taxation year or the two previous taxation years (can be claimed for three consecutive years)
- property is required as a secondary residence by the owner or their spouse for full-time employment purposes
- property is required as a secondary residence by the owner, their spouse or dependent for medical treatment in Toronto
- property cannot be occupied due to court order
- property was newly constructed and never occupied or sold and were actively listed for sale during the taxation year (can be claimed for two consecutive years)
How will residential property owners be notified?
Details about the Vacant Home Tax Program and how to make a declaration for the 2025 calendar year will be mailed to property owners in November. Homeowners are encouraged to check their mailboxes. The City is using a range of multilingual communication channels, including direct mail, advertising, media outreach, social media, and grassroots tactics to ensure all homeowners are informed about the Vacant Home Tax program and their responsibilities.
Declaration Process
How can property owners declare their property’s occupancy status?
Homeowners can declare their property’s occupancy status through the following channels:
City of Toronto, Revenue Services
Vacant Home Tax Complaints/Appeals
5100 Yonge St Lower Level
Toronto ON M2N 5V7
The 2025 declaration period and online portal will open on November 3, 2025, and close on April 30, 2026.
Can homeowners who speak English as a second language get help making their declaration, if required?
Homeowners who need assistance making their declaration can call 311 which offers service in more than 180 languages.
Will homeowners be required to submit supporting documentation with their declaration?
If the homeowner is filing their declaration as occupied, supporting documentation will not be required at the time of submission.
Homeowners will be required to submit supporting documentation with the declaration in cases where they are claiming an exemption. Homeowners can submit their documentation through the online portal, by dropping it off at an Inquiry & Payment Counter, or by mailing it in.
Is there a paper-based declaration form?
A paper-based form is available upon request.
How will someone who doesn’t have an email account or who declares by phone receive confirmation of their declaration?
Property owners who do not provide an email address when declaring online can print or save the "Confirmation" page which includes a confirmation number they can write down. For those declaring by phone or at a Tax and Utility counter, a confirmation number will be provided. If someone declaring in-person or by phone requests a printed confirmation, the City will provide one at the counter or send one by mail.
What support is available for seniors or those with limited computer access?
Homeowners who do not have easy access to a computer can declare their property by calling 311. Or they can file a declaration at a Tax and Utility counter at Toronto City Hall or a civic centre. Homeowners can also have a family member or friend complete the online declaration on their behalf. Alternatively, a paper-based form can be mailed upon request.
What happens if a property owner does not submit their declaration?
If a property owner does not make a declaration of 2025 occupancy status by April 30, 2026, the property will be deemed vacant and be subject to the Vacant Home Tax. Prior to this, the City will make every effort to notify owners who have not submitted a declaration including a follow-up mailed notice as well as email reminders and robocalls to those who provided their contact information.
Will taxpayers who did not declare before the deadline be subject to a fee?
For the 2025 Vacant Home Tax, the late declaration fee remains waived.
When can taxpayers expect to receive their Vacant Home Tax Notice of Assessment for 2025?
Residential property owners who did not declare before the deadline or declared as vacant will receive their Notice of Assessment early June 2026.
General Questions
How will the City enforce the Vacant Home Tax?
The City conducts audits, including audits of all exemption claims, and random audits of declarations that were submitted. Owners who cannot provide evidence to support their occupancy claim will be subject to the tax and issued a Supplementary Vacant Home Tax Notice of Assessment. If a customer suspects that there is a vacant property in their neighbourhood, this can be anonymously reported through the vacant property reporting hotline 416-395-1098.
What are some specific projects that have been supported by the Multi-Unit Residential Acquisition (MURA) program?
Projects supported by the Multi-Unit Residential Acquisition (MURA) program can include the acquisition and renovation of affordable housing units, redevelopment initiatives to enhance the availability of affordable rental properties and partnerships with non-profit organizations to create sustainable housing solutions.
How will the success of the Vacant Home Tax Program be tracked?
The success of the Vacant Home Tax Program will be measured through several metrics and trends such as monitoring whether properties taxed in first year are subsequently occupied in the second year, and so forth. The City will analyze this data to assess the program’s effectiveness and overall impact.
Key indicators that will be monitored and reported on annually include:
- the number of vacant and occupied residential properties in the city
- changes in the number of secondary rental market units in the city, relative to new unit completions
- revenue generated from the Vacant Home Tax and contributions to affordable housing programs
How will the City use the revenue from the Vacant Home Tax?
Revenue from the Vacant Home Tax supports the delivery of important housing programs under the HousingTO Plan to preserve and increase the supply of permanent affordable homes, including funding for Toronto Community Housing Corporation (TCHC) units and the Multi-Unit Residential Acquisition (MURA) program. The MURA Program provides capital funding to not-for-profit housing providers to acquire and preserve at-risk rental housing as permanently affordable.
Common Scenarios
Who should submit the declaration in situations where the property sold?
Scenario A: The property sold within the taxation year being declared
- Either the vendor or purchaser can submit a declaration
- If required either the vendor or purchaser can file a Notice of Complaint
- Properties in this scenario qualify for the exemption transfer of legal ownership
Scenario B: The property sold after the taxation year being declared
- The vendor must submit a declaration as only the vendor will know the occupancy status for the prior year
- If required only the vendor can file a Notice of Complaint
- Purchasers of properties that were not declared should contact their solicitor
If no declaration is made for the property, the property will be deemed vacant and subject to the tax. The Vacant Home Tax forms a lien on the property, and the purchaser will be held responsible for the payment of the tax.
What is the process for letting landlords know about the Vacant Home Tax Program and the requirement to make a declaration for their rental properties?
The City is sending informational materials about the Vacant Home Tax Program to all owners of residential property, including those who rent out their property, by direct mail. The notices, which include instructions on how to declare occupancy status, will be mailed to the address of the registered property that the City has on record.
How can the City prevent tenants from receiving Vacant Home Tax information that might lead to landlords not declaring their properties?
The City does not track the delivery of property tax bills, utility bills or notices about the Vacant Home Tax Program. These are sent to the property owner at the mailing address that the City has on file, with the owner’s name displayed. If a property owner is renting out their property, they can have mail directed to wherever they are residing.
Landlords whose primary address is in Toronto will also receive information about the Vacant Home Tax Program at their primary address. In addition, owners who provided an email address will receive a reminder that they need to make an annual declaration of the property’s occupancy status.
What actions can landlords take to ensure they make an annual declaration for residential properties they own?
Landlords should maintain up-to-date records of their properties and ensure they submit a declaration of occupancy status for each property. Landlords who live in Toronto are encouraged to declare for properties they rent out when they make a declaration for their own residence.
What if a resident leaves their principal residence for an extended period of time?
If the property remains the occupant’s main residence (where they reside and conduct their daily affairs, receive mail, pay bills, etc.) it can remain unoccupied for an extended period of time (due to snowbirds, extended-stay travellers, etc.) and would not be considered vacant. They can still submit their declaration as occupied.
