Toronto Vacant Home Tax
All Toronto Homeowners are required to submit an annual declaration regarding the occupancy status of their residential properties for each year that began in 2022. The deadline to file the declaration for 2023 is February 29, 2024.
Properties that are considered “vacant” are subject to the Vacant Home Tax.
A property is considered “vacant” if any of the following applies:
- the property was not the principal residence of the owner or it was not occupied by permitted occupants (family member, friend) or tenants for six months or more in the calendar year.
- the property does not qualify for an exemption*.
- the owner fails to submit the annual declaration.
- the owner fails to submit required supporting documents for an exemption.
* There are various situations that could qualify for exemptions. See link below. Note that supporting documents are required to be submitted for the applicable situation.
Declarations can be submitted through the online portal or by mail. You will need the 21-digit assessment roll number and the customer number from your property tax bill.
https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/
For 2022 and 2023, the tax is 1% of the Current Value Assessment (CVA).
For 2024 and onwards, the tax has been increased to 3% of the CVA.
Those who are subject to the tax will be issued a Vacant Home Tax Notice at the end of March.
Late declaration submissions will be charged a fee of $21.24.
Overdue tax payments will be subject to interest charge of 1.25% on the first day after due date and 1.25% for each month thereafter.
False declarations or failure to provide information when requested may result in a fine of up to $10,000, in addition to the tax.
When purchasing property, buyers have to make sure to obtain proof that declarations have been filed and no taxes are owed. If previous owner did not make a declaration, the property will be considered vacant and buyer will be held responsible for taxes and fees.
If property transfer occurs before Dec.31 of 2023, the buyer has to submit the declaration for 2023 by Feb.29, 2024.
If property transfer occurs between Jan.1, 2024 to Feb.29, 2024, the seller has to submit the declaration for 2023 by Feb.29, 2024.
The above information is of a general nature only and should not be relied upon for specific situations. Call Marlies Y Hendricks, CPA at 416-766-3941 or submit email enquiry form below to set up a consultation.
