You need to declare your vacant home tax declaration even if your home is not vacant for 2023 before Feb 29, 2024
The Toronto Vacant Home Tax is a tax imposed on residential properties in Toronto that are deemed to be vacant or underutilized. The tax is intended to encourage owners to make their properties available for rent or sale in order to increase the city’s housing supply. The tax was approved by Toronto City Council in 2017 and came into effect on January 1, 2022. Under the tax, owners of vacant or underutilized residential properties are required to pay an additional tax of 1% of the property’s assessed value annually. However, there are some exemptions to the tax, such as for properties undergoing renovations, those that are the primary residence of the owner, or those that are used for short-term rentals.
If you own property in the City of Toronto, it’s important to be aware of the newly enacted vacant home tax. You will need to complete an annual declaration about the occupancy status of your property, whether it’s vacant or occupied, and whether it’s your principal residence or a rental. Failure to submit the declaration could result in your property being deemed vacant and subject to the tax. Even if you submit the declaration late, you will still be fined between $250 and $10,000.
The tax is calculated as 1% of your property’s Current Value Assessment, which can be found on your property tax bill. For example, if your property is valued at $3M, your vacant home tax will be $30K, in addition to your regular property tax.
There are, however, some exceptions to the vacant home tax. The tax does not apply to properties that are the principal residence of the owner or a permitted occupant or tenant, or those that qualify for an exemption. For instance, if your property is occupied as your principal residence for at least six months, you won’t have to pay the vacant home tax. The same exemption applies if your property is occupied by a tenant or if it’s vacant due to reasons like repairs or renovations, death of a registered owner, or court order.
The deadline for submitting the occupancy status declaration for your Toronto homes is February 29, 2024 for the year of 2023. For more information, please visit the City of Toronto Vacant Home Tax website.