In 2021, the City of Toronto introduced an annual tax to be levied on vacant Toronto residential property, payable beginning in 2023. A Vacant Home Tax of one per cent (1%) of the Current Value Assessment of the property will apply to residences that are vacant or deemed vacant. Residential property is considered vacant where the property has been unoccupied for a total of six months throughout the previous year or is otherwise deemed vacant under the City of Toronto bylaw unless an eligible exemption applies. Eligible exemptions include the death of the registered owner and where the principal resident is in a hospital, long-term or supportive care facility.
All residential property owners in Toronto are required to declare the occupancy status of their property or properties, even if the property is occupied. The City of Toronto has sent yellow notices by mail containing the information required to make a declaration.
A late declaration or failure to make a declaration will result in a minimum fine of $250 and may result in your property being deemed vacant. Once deemed vacant, your property will be subject to the Vacant Home Tax and you will be issued another notice. The declaration of occupancy status is made through the City of Toronto's online declaration portal or a paper declaration form that can be obtained by contacting 311 – Toronto at Your Service. The paper declaration form must be completed and received by the City of Toronto before February 2, 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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