Vacant Home Tax in Toronto: What You Need to Know

The City of Toronto has implemented the Vacant Home Tax (VHT) as part of its ongoing efforts to address the housing crisis and encourage property owners to make better use of residential properties. If you own a property in Toronto, registering your home’s occupancy status is a mandatory process that ensures compliance and avoids unnecessary fines.

What is the Vacant Home Tax (VHT)?

The VHT is a tax levied on homes that remain unoccupied for more than six months in the previous year. The purpose of this tax is to boost the availability of housing in the city by encouraging owners to rent out or sell unutilized properties.

Who Needs to Register?

All residential property owners in Toronto must declare their property’s status annually, whether occupied, rented, or vacant. Even if your home is occupied, registration is still required to avoid an automatic vacant designation and subsequent fines.

Exemptions to the Vacant Home Tax

Certain situations exempt properties from being taxed as vacant, including:

• Significant renovations requiring the home to be uninhabitable
• The property was purchased or sold within the reporting year
• The owner is away for medical treatment or deceased, with the estate handling affairs

How to Submit Your Declaration

1. Visit the City of Toronto's Official VHT Page: Toronto Vacant Home Tax
2. Enter Your Information: Access the secure form and declare your occupancy status.
3. Deadline for Submission: Ensure your declaration is submitted before the early February 2024 deadline to avoid penalties.

What Happens If You Don’t Register?

If a property owner fails to declare their status, the city may assume the property is vacant and impose a tax of 1% of the current assessed value of the home. Depending on your home’s value, this could lead to significant additional costs.

Penalties and Audits

The City of Toronto can audit property declarations. Property owners must maintain proof of occupancy, such as lease agreements or utility bills, for future reference.