In 2019, City Council asked for information related to the possible implementation of a vacant home tax in Toronto. At their December 2020 meeting, City Council asked City staff to develop key tax design features and administrative structures to support a vacant home tax program and to report back with a recommended design for a vacant home tax by the end of the second quarter of 2021, for tax implementation in 2022.
On July 14-15, 2021, City Council approved the development and implementation of a vacant home tax in Toronto.
On January 1, 2022, the City of Toronto implemented the Vacant Home Tax; an annual tax levied on vacant Toronto residences, payable beginning in 2023.
On October 12-13, City Council approved a three percent increase to the Vacant Home Tax.
A property is considered vacant if it has been unoccupied for a total of six months during the previous calendar year or is otherwise deemed to be vacant under the bylaw.
The City of Toronto’s Vacant Home Tax (VHT) goal is to increase the housing supply by discouraging owners from leaving their residential properties unoccupied. Homeowners who choose to keep their properties vacant will be subject to this tax.
Revenues collected from the Vacant Home Tax will be allocated toward affordable housing initiatives.
Information and Resources
The tax rate for 2023 is set at THREE percent of the property's current value assessment (CVA) for the year the home is vacant.
The City began mailing notices advising of the Vacant Home Tax Property Status Declaration to all residential property owners on December 6, 2022.