Vacant Home Tax

Who's Responsible for What?

Municipal

By-Law 97-2022

Provincial

Federal

In April 2024, City Council adopted CC17.1 - Immediate Actions to Address the 2023 Taxation year of the Vacant Home Tax. Please see the "Improvements to the VHT Programme" tab above for more information.

Background:

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.

How does the City define what a "vacant home" is?
As outlined in the Vacant Home Tax bylaw, a property is considered vacant if:

The property was not the principal residence of the owner or any permitted occupants or was not occupied by tenants for a total of six months or more;
The property was not eligible for an exemption; or
The property was deemed vacant because the owner failed to submit a declaration of occupancy status or any required supporting documentation.

More details, including allowable exemptions, are available on the City’s Vacant Home Tax Webpage.

Q: Do I owe the late fee of $21.40 for 2024?

DO NOT PAY THE LATE FEE, the late fee will be immediately waived for anyone who states that they completed the declaration before the March 15th deadline, furthermore and given the challenges experienced with this year’s process, the Budget Chief and Mayor will be bringing forward direction to City Council to seek authority to waive the $21.24 late fee for everyone impacted this calendar year.

Q: I received a bill stating the home I live in is vacant.

You DO NOT have to pay the VHT if the property is your principal residence or was occupied by tenants or other permitted occupants for more than six months in 2023;
You still must file a Notice of Complaint; and
Upon receiving and confirming your occupancy, the City will reverse the Vacant Home Tax assessed on the property, along with any interest that may be incurred after the May 15, 2024 initial payment due date.

Revenue Services is planning to mail a letter to residential property owners who:

Did not declare the occupancy status of their property by the March 15 deadline;
Received a Notice of Assessment for the Vacant Home Tax because their property was deemed vacant when no declaration was received; and
Have yet to file a Notice of Complaint to indicate that their residential unit was in fact occupied in 2023.

Extra and dedicated staff will be available at Revenue Services counters at City Hall and civic centres from 9:00am to 4:30pm every day through Friday, April 12, 2024.

City Council has recently adopted CC17.1 - Immediate Actions to Address the 2023 Taxation year of the Vacant Home Tax which will overhaul the entire Vacant Home Tax (VHT) process. This is in response to Torontonians receiving, what to many, were surprise bills from the City telling them that they owe thousands of dollars for failing to declare their home vacant. Approximately 125,000 homeowners failed to declare their home occupancy status in 2023, indicating that this was a systematic issue that needed addressing.

City Council swiftly adopted the following measures:

Fees for failing to declare in the 2023 taxation year have been waived, along with refunds for residents who have already paid; and
If a declaration or notice of complaint was not filed for 2023, the City will deem your property’s occupancy status as the same as in 2022

Reforms to the VHT programme will also be examined, ensuring that in future years the process is simple and fair.

The City will evaluate the feasibility of using utility data to deem a home’s occupancy status;
Improvements to communicating the declaration due date to residents, including the use of distinct multi-lingual mailings and partnerships with agencies and organizations;
Improving the user experience, such as adding receipts and digital email confirmation when declaring online;
Incorporating feedback from 311 and members of council, emphasizing the burden placed on seniors, residents experiencing barriers to internet access, and those who are not fluent in English; and
Eliminating late declaration fees for seniors and other vulnerable groups.

The ultimate goal is to ensure all our vacant units are being occupied by owners or tenants, eliminating any need for a VHT. Our office is always open to residents who have ideas on how to improve this programme; please do not hesitate to email our office at [email protected]

Frequently Asked Questions

When are declarations due?

For the 2023 taxation year, declarations must be received by February 28, 2024. If you completed the paper form, please be aware of Canada Post delivery times.

How can I submit my declaration?

Property owners, or their representative, must make a declaration of the occupancy status of their residential property(s) on the City’s online portal prior to February 28, 2024, or by completing a hard copy declaration form.

Those who do not wish to make their declaration using the online portal can print a hard copy declaration form to mail in, or they can request a paper-based copy of the declaration by calling 311 to arrange for a copy of the form to be mailed to them. Declaration forms can also be picked up or completed forms dropped off at any one of the Property Tax and Utility Customer Service Counters at City Hall and all Civic Centre locations.

Are there any exemptions?

There are a number of circumstances where a home may be exempt from the Vacant Home Tax including the following:

Death of the registered owner during the taxation year or previous taxation year.
Property undergoing repairs or renovations and the necessary conditions have been met.
The principal resident of the vacant property (unit) is residing in a hospital, long term or supportive care facility for a total of at least six months during the taxation year (may claim up to two consecutive taxation years).
Transfer of legal ownership of property during the taxation year.
The vacant unit is required for occupation for employment purposes for a total of at least six months in the taxation year, by its owner who has a principal residence outside of Toronto.
Court order prohibiting occupancy of the vacant unit for at least six months of the taxation year.

Why did the City implement the Vacant Home Tax?

The Vacant Home Tax aims to increase the housing supply by discouraging owners from leaving their residential properties unoccupied and instead making them available for rent or for sale. Homeowners who choose to keep their properties vacant will be subject to this tax. Revenues collected from the Vacant Home Tax will be allocated towards affordable housing initiatives, including the Multi-Unit Residential Acquisition program.