What to expect with Toronto’s vacant home tax
Posted February 1, 2023 7:42 am.
Last Updated February 2, 2023 4:34 pm.
If you’re a homeowner in the City of Toronto, you have until end of February to declare that it is occupied. Otherwise, you will face an additional 1 per cent tax based on the assessed value of your property.
The city says a declaration is not required if the property does not contain a residential unit (vacant land, parking space or condominium locker). All residential property owners in Toronto are required to declare the occupancy status of their property annually, even if they live there.
Homeowners could also face a $250 fine for filing a late declaration, though the city says there will be a grace period.
A city spokesperson says the primary goal of Toronto’s Vacant Home Tax (VHT) is to increase the housing supply by discouraging homeowners from leaving their residential properties unoccupied. Notices of the declaration requirement were sent to homeowners in December.
Exemptions:
Toronto vacant home tax exemptions. Photo: City of Toronto.
Toronto’s VHT does not apply to properties that are the owner’s principal residence. These properties are the primary residence of a permitted occupant or tenant properties that qualify for an exemption.
The city says revenues from the VHT will be allocated towards affordable housing initiatives across Toronto.
How to pay VHT
For example, if the property’s current value assessment is $1,000,000, the tax amount billed would be $10,000 (1 per cent x $1,000,000).
“The vast majority of Toronto property owners will not pay this tax. Homeowners who live in their own home, live in their own homes but go to a vacation home during parts of the year snowbirds or work abroad, and those who rent out their property are not subject to the VHT,” a city spokesperson wrote in a news release.
If a homeowner disagrees with the decision, they will have 90 days to submit an appeal request. The city will vary or reconsider the assessment within 30 days following the determination. The appeal decision is final.
Declarations can be made through the city’s secure online portal or by calling 3-1-1 to request a paper form. The city says that those who do not have access to a computer can authorize someone to act on their behalf to make the online submission.
