Your quick guide to the Vacant Home Tax
Published January 9, 2023
Beginning in 2023, all Toronto residential property owners will be required to submit a declaration of their property’s occupancy status for the previous year, even if they live there. Failure to do so may result in being subject to additional tax. The declaration of a property’s 2022 occupancy status must be made by February 2, 2023.
Who does this affect?
All Toronto residents who own a residential property. The declaration will need to be made annually.
How is “vacant” defined for the purpose of this Tax?
A property is considered vacant if
- It was not used as the principal residence by the owner, or
- It was not used by any permitted occupant, or
- It was unoccupied for a total of six months or more during the previous calendar year.
It is important to note that properties may also be deemed (or considered to be) vacant if an owner fails to make a declaration of occupancy status.
What do you need to make the declaration?
- The declaration must be made by the homeowner, or someone acting on behalf of the owner.
- You will need your 21-digit assessment roll number and customer number. This can be found on your property tax bill or account statement.
- Declarations should be made HERE – This is My Toronto Pay, the city’s secure declaration portal. You can also make a payment through your bank’s online portal.
A paper declaration is also possible (if required), but you’ll need to ensure that it is received by the City of Toronto before the deadline. You can also make your payment in person at the City of Toronto’s Property Tax and Utilities Payment Counters and Drop Box Services.
Who will need to pay the Vacant Home Tax?
- Residential properties declared vacant for six months or more during the taxation year.
- If the owner fails to make a declaration by the deadline.
- If the owner fails to provide supporting documentation.
How much will you be taxed?
Anyone subject to the Vacant Home Tax will pay one percent, per year, of a home’s current assessed market value.
Why is this Tax being introduced?
City Council voted in late 2021 to create the tax on vacant properties.It is aimed to:
- Help increase housing supply by putting pressure on home owners to sell vacant properties or put them on the rental market.
- Help raise ~$60 million per year.
Those who are subject to the tax will be issued a Vacant Home Tax Notice in March or April, with payment due on May 1.For more information, please visit the City of Toronto’s Vacant Home Tax information page, which can be found HERE.