Vacant Home Tax

If you would like to dispute your Vacant Home Tax Notice of Assessment because your property qualifies for an exemption, or to change its occupancy status, please submit a Notice of Complaint. If required to do so, you may submit additional documentation, file an appeal of any complaint decision, and respond to an audit through the same portal.

If a property owner did not submit a declaration of occupancy status or a Notice of Complaint for the 2023 taxation year, their residential unit will be recognized as having the same occupancy status as it had for the 2022 taxation year. Owners who previously declared their property as occupied do not have to take further action to submit a Notice of Complaint for 2023. Owners who have not previously provided a declaration of occupancy status for their property (for example, new owners) and who wish to dispute the Vacant Home Tax assessment they received should file a complaint. The City has waived the late fee for not providing a declaration of 2023 occupancy status by the March 15, 2024 deadline.

If you wish to dispute your 2022 Notice of Assessment or have been asked to provide evidence, you can file a Notice of Complaint or submit evidence through the City’s secure online portal. The deadline to file a Notice of Complaint for the 2022 and 2023 taxation years is December 31, 2024.

You can view the status of your Declaration, Notice of Complaint, Appeal or Audit on the Property Tax Lookup page. You can also subscribe to receive Vacant Home Tax updates and reminders by submitting your email address at the bottom of this web page.

The goal of the Vacant Home Tax (VHT) is to increase the supply of housing by discouraging owners from leaving their residential properties unoccupied. Homeowners who choose to keep their properties vacant will be subject to this tax.

Revenues collected from the Vacant Home Tax will be allocated towards affordable housing initiatives, including the Multi-Unit Residential Acquisition (MURA) program.

You can get information about the Vacant Home Tax and how to declare occupancy status or file a complaint in any language. Click on “Translate” in the blue bar at the bottom of this webpage and select a language.

If you would like to report a residential property that you believe to be vacant, you can leave a message on the vacant property reporting hotline at 416-395-1098. This hotline is not for declaring a property’s occupancy status and messages will not be returned.

How It Works

Owners of properties in Toronto that are classified within the residential property tax class are required to declare the occupancy status of their property every year, even if they reside there. However, the tax does not apply to:

properties that are the principal residence of the owner
properties that are the principal residence of a permitted occupant or occupied by a tenant (including business tenants)
properties that qualify for an exemption

As outlined in the bylaw, a property is considered vacant if:

the property was not the principal residence of the owner or any permitted occupants or was not occupied by tenants for a total of six months or more during the calendar year
the property was not eligible for an exemption
the property was deemed vacant because the owner failed to submit a declaration of occupancy status or any required supporting documentation

Declarations of occupancy status can be submitted through the online portal or by mail, either by the property owner or an authorized representative acting on their behalf.

Owners of properties subject to the tax will be issued a Vacant Home Tax Notice at the end of March and payment will be due in three instalments in May, June and July.

You do not have to declare if:

your property is not yet assessed
the property is classed as multi-residential, commercial or industrial
the property is classified by MPAC as vacant land, parking space or a condominium locker

Vacant Home Tax Calculation

For the 2022 and 2023 taxation years, a Vacant Home Tax of one per cent of the Current Value Assessment (CVA) will be levied on all Toronto residences that are declared, deemed or determined to be vacant for more than six months during the previous year. For example, if the CVA of your property is $1,000,000, the tax amount billed would be $10,000 (1% x $1,000,000).

For 2024 and future taxation years, a tax of three per cent of the CVA will be levied on all Toronto residences that are declared, deemed or determined to be vacant for more than six months during the previous year. For example, if the CVA of your property is $1,000,000, the tax amount billed would be $30,000 (3% x $1,000,000).

The tax is based on the property’s occupancy status and CVA for the previous year. For example, if the home is vacant in 2023 the tax will be calculated using the 2023 CVA and will become payable in 2024.

How to Declare

The City’s secure online portal is the best way to submit a declaration. It’s quick and easy to declare online – and helps prevent potential errors and readability issues that sometimes occur with declarations completed by hand. If a property owner or their representative does not have access to apply online, a hardcopy form will be provided.

To make your annual declaration, you will need the 21-digit assessment roll number and the customer number from your property tax bill or property tax account statement.

Please do not submit any personal information by email as it is not a secure form of file transfer.

If there is an error in the declaration you submitted and it is not past the declaration deadline, you can re-file a new declaration.

Definitions of Occupancy Status

The following occupancy types may be selected when completing your declaration:

Occupancy Status	Description	Subject to VHT?
Occupied as principal residence of homeowner	The property is where you reside and conduct your daily affairs, receive mail, pay bills, etc. You can only have one principal residence. This applies even if you leave for extended periods of time due to travel (for example, snowbirds who spend more than six months away from their principal residence) or work. The property must be your principal residence for at least six months during the taxation year to claim this type of occupancy status.

Snowbirds and other extended-stay travellers

The Vacant Home Tax allows for owners to be away from their principal residence due to travel, work and other reasons for extended periods of time.

The declaration form asks if the property was the principal residence of the owner for at least six months. The six-month stipulation refers to the property being your principal residence for this period of time and not your physical occupancy of the property. As long as a property remains your principal residence you can declare the occupancy status as occupied.

Co-ops and multi-unit residential dwellings

Properties in the residential property tax class that have a single roll number and multiple units must be declared annually. Only one declaration for the entire building is required. If at least one unit was occupied for six months or more, you can indicate that the property was occupied.

Submission Trouble Shooting Tips

If you are having difficulty using the online declaration portal, please try again after updating your web browser or by using a different browser.

Exemptions

A property may be left vacant and be exempt from the Vacant Home Tax if one of the following criteria is met:

Eligible Exemption	Description	Supporting Documentation
Death of a registered owner	The property was vacant for six months or more in the taxation year due to the death of an owner. This exemption may be claimed for up to three consecutive taxation years if the owner of the vacant unit died in the taxation year or in the two previous taxation years.	Copy of death certificate.
Repairs or renovations	The vacant property is undergoing repairs or renovations, and all the following conditions have been met:

Occupation and normal use of the vacant property is prevented by the repairs and renovations for at least six months of the taxation year.
All necessary permits have been issued for the repairs and renovations.
The City is of the opinion that repairs or renovations are being actively carried out without unnecessary delay.

The residential unit was not occupied as a residence at the end of the last business day of the taxation year for which the property is being declared, and was not occupied for residential purposes since it was constructed.
The residential unit was actively offered to the public for sale in the taxation year for which the property is being declared.
The owner of the residential unit is the developer of the residential unit.

Late Declarations, Fees, Fines & Penalties

If a declaration is not submitted by the deadline, the property will be deemed vacant and will be subject to the Vacant Home Tax. Effective January 1, 2024, a fee of $21.24 was implemented for failing to submit a declaration of occupancy status by the declaration deadline. This fee is being waived for all applicable properties for the 2023 taxation year. The City will credit the property tax account of owners who have already paid the fee.

Interest charges will apply to any overdue Vacant Home Tax amount at a rate of 1.25 per cent on the first day of default and on the first day of each month thereafter, for as long as taxes or charges remain unpaid.

Upon default of payment, the unpaid amount will be added to the property tax roll for the residential property and will be collected in the same manner as property taxes.

A Dishonoured Cheque Processing / Non-Sufficient Funds (NSF) fee will be applied to all payments that are not honoured by a financial institution.

False declarations of occupancy status or failure to provide information when requested may result in a fine of up to $10,000, in addition to payment of the tax.

Change of Ownership & the Vacant Home Tax

The Vacant Home Tax has implications for property transactions, both for purchasers and vendors:

It is the responsibility of purchasers and vendors to make appropriate arrangements to ensure that the declaration of occupancy status has been submitted.
Vendors should provide a copy of the completed and filed declaration of occupancy status to the purchaser.
Vendors should provide a statutory declaration at closing confirming the filed property status declaration is true and correct.
Purchases should do their due diligence to ensure they are aware of property tax liabilities.

Who is responsible for making the occupancy status declaration?

For property transferred prior to December 31 of the year being declared, the purchaser must submit a declaration. The purchaser qualifies for the “transfer of legal ownership” exemption.
For property transferred between January 1 and the closing of the declaration period on the last business day of February, the vendor must complete the declaration prior to the closing. This is because only the vendor will know the property’s occupancy status for the prior year.

What happens if the previous owner did not make a declaration?

The property will be deemed vacant and subject to the tax and fee.
The Vacant Home Tax forms a lien on the property, and the purchaser will be held responsible for the payment of the tax.

Paying the Vacant Home Tax

Vacant Home Tax payments are due in three equal instalment amounts on the due dates of May 15, June 17 and July 15, 2024.

To ensure your payment reaches the City on or before the due dates, we suggest making your payment electronically through MyToronto Pay or through your financial institution’s online banking portal.

Financial Institutions

You can pay the Vacant Home Tax at banks or financial institutions through online banking, telephone banking, at an automated teller machine (ATM) or in-person.

To register and pay through online banking:

You will need your 21-digit assessment roll number from your Vacant Home Tax Notice.
Sign in to your financial institution’s secure website and select the payee “Vacant Home Tax Toronto (City)”. If your bank does not have this payee listed or you are having difficultly, please contact your financial institution for information.

Payee information is subject to change without notice. If you require assistance, please contact your bank or financial institution.

MyToronto Pay

MyToronto Pay is a new service from the City of Toronto in collaboration with our trusted partner PayIt. Using MyToronto Pay, Vacant Home Tax payments can be made by electronic funds transfer with no convenience fee, or by credit card or debit card with a convenience fee charged by the company.

Mail-In Payment

The City accepts post-dated cheques payable to the Treasurer, City of Toronto:

Treasurer, City of Toronto
PO Box 5000, Willowdale STN A
Toronto, ON M2N 5V1

Inquiry & Payment Counters and Drop Box Services

The City’s Property Tax and Utilities Inquiry & Payment Counters have reopened.

You can make payment by cash, cheque, money order or debit card. If making payment via drop box, cheque or money order is accepted.

Notice of Complaint & Appeal

A two-stage process is available to property owners who wish to have the outcome of their declaration reviewed. The first step is to file a Notice of Complaint. The second process, an appeal request, is available to property owners who disagree with the decision about their Notice of Complaint.

To file a Notice of Complaint or Appeal you will need your 21-digit assessment roll number and the customer number from your property tax bill or property tax account statement.

A Notice of Complaint or Appeal should be made through the City’s secure online portal. If unable to submit online, you can submit your complaint and/or appeal by mail.

Please do not submit any personal information by email as it is not a secure form of file transfer.

You may be required to submit additional information or documentation. If you receive a letter requesting additional evidence, you will have 60 days to submit documents that support your occupancy or exemption claim. Failure to provide this information will result in the complaint or appeal not being considered. Once all required information is received and a determination is made, the City will send a written response by regular mail to the address on file.

Notice of Complaint

You may file a Notice of Complaint if:

you failed to make a declaration of occupancy status by the deadline
you made an error on your declaration and it is past the declaration deadline
you disagree with the Vacant Home Tax Notice of Assessment or Supplementary Assessment
your property was deemed vacant through an audit or otherwise and you wish to dispute the Vacant Home Tax that was levied in the Supplementary Vacant Home Tax Notice of Assessment

Submitting a Notice of Complaint through the online portal is quick and easy. Based on the options you select, you may or may not need to provide supporting documentation. If you are submitting your complaint in writing it must include:

assessment roll number and customer number
complainant’s full name and contact details (telephone number or email)
information that specifies your authority to act on the behalf of the owner, if this applies and you are a complainant acting on someone’s behalf
reason(s) for the complaint and why the residential property should not be subject to the tax
supporting documentation and evidence to substantiate the reason(s) for the complaint

Your complaint must be received within the following time frames:

The deadline to file a Notice of Complaint for the 2022 and 2023 taxation years is December 31, 2024.
For Supplementary Vacant Home Tax Notice of Assessment, a submission must be filed within 90 days of the date on your notice.

Once all required information is received and a determination is made, the City will send a written decision letter to the owner by regular mail, at the mailing address on file at the time the decision is made.

Continue to pay the Vacant Home Tax as billed. If you do not pay the balance of the Vacant Home Tax prior to the due dates and your Notice of Complaint is not accepted, the tax will be due along with any applicable interest, penalties and fees.

If the property is determined not to be subject to the Vacant Home Tax:

The Vacant Home Tax will be cancelled, along with any applicable interest and penalties.
Any credits will be refunded or transferred to property tax.

Note that failure to pay the Vacant Home Tax by the due dates will result in interest and possible fees being added to the property tax account. Notice of Complaint decisions may not be finalized by the due date.

Appeal

If you disagree with the decision made regarding your Notice of Complaint, you will have 90 days to submit an appeal request. The grounds of your appeal are limited to the same issues raised in your initial complaint, unless the outcome of your complaint resulted in a reassessment or varied assessment.

Submitting an appeal through the online portal is quick and easy. If you are submitting your appeal in writing it must include:

assessment roll number and customer number
requestor’s full name and contact details (telephone number and/or e-mail address)
if acting on behalf of owner, information regarding your relationship to the owner and your authority to act on their behalf
statement of the grounds for the appeal and why the property should not be subject to the tax on these grounds
supplementary information and evidence to substantiate the grounds for the appeal

Upon receipt of your appeal request, your submission will be reviewed within 90 days by the Appellate Authority. The Appellate Authority will make a determination to allow or dismiss the appeal in whole or in part.

Following the determination the City will, if required, make any adjustments to the assessment within 30 days. The City will send a written decision letter to the owner by regular mail, at the mailing address on file at the time the decision is made. The appeal decision is final.

Supporting Documentation

Examples of supporting documentation include but are not limited to:

Ontario vehicle registration and vehicle insurance documentation showing subject address
government-issued personal identification showing subject address, including driver’s license and Ontario Identity Card
income tax notices of assessment showing subject address
tenancy agreement(s) for the residential property
bank statements showing reoccurring rental income
copy of death certificate of the registered owner
employment contracts, pay statements or records of employment showing subject address
insurance certificates for homeowner’s or tenant’s insurance at subject address
court orders prohibiting occupancy of the subject property
signed letter from health care facility on letterhead with contact details for the care facility
description of the type of project at the subject address along with any supporting documents (for example, work orders, contractor receipts) that demonstrate the occupation and normal use of the vacant unit was prevented by the repairs or renovations for at least six months in the taxation year
copy of any building permits issued to the subject address related to repairs or renovations land transfer deed for the subject address

Submission Trouble Shooting Tips

If you are having difficulty using the online portal, please try again after updating your web browser or by using a different web browser.

City of Toronto, Revenue Services
Vacant Home Tax Complaints/Appeals
5100 Yonge St.
Toronto, ON M2N 5V7

A property may be selected for audit on a random or specific criteria basis. If selected for audit, the City may require the owner to provide information and evidence to substantiate their claim of occupancy of a residential property or any exemption.

If further information or evidence is required, the City will send you a letter by mail advising what you need to do. Once an audit is complete, you will be notified by mail of the outcome.

Supporting Documentation

If your property is selected for audit you may be required to submit supporting documentation. Examples of supporting documentation include but are not limited to:

Ontario vehicle registration and vehicle insurance documentation of any occupant and owner
government-issued personal identification, including driver’s license and Ontario Identity Card of any occupant and owner
income tax notices of assessment of any occupant and owner showing subject address
lease agreements for the residential property
wills, grants of probate, or grants of administration in respect of an owner or an owner’s estate
employment contracts, pay statements or records of employment of any occupant and owner
insurance certificates for homeowner’s or tenant’s insurance
statutory declarations or affidavits regarding the occupancy of the residential property and any exemption

All records and documents pertaining to the occupation of the residential property or any exemption claimed must be retained for a period of three years.

Background

In 2019, City Council asked for information related to the possible implementation of a vacant home tax in Toronto. At their December 2020 meeting, City Council asked City staff to develop key tax design features and administrative structures to support a vacant home tax program and to report back with a recommended design for a vacant home tax by the end of the second quarter of 2021, for tax implementation in 2022.

At its meeting on July 14-15, 2021, City Council adopted EX25.3- Recommended Tax Design and Steps to Implement a Vacant Home Tax in Toronto, approving the development and implementation of a vacant home tax in Toronto. At its meeting on December 15, 16 and 17, 2021, City Council adopted EX28.2 – Final Tax Design and Steps to Implement a Vacant Home Tax in Toronto, amending the City of Toronto Municipal Code, adding Chapter 778, Taxation, Vacant Home Tax.

Vacant Home Tax Updates

Subscribe to receive updates about the Vacant Home Tax, including reminders to submit an annual declaration of your residential property’s occupancy status and notices of important due dates.

Type (don’t copy and paste) your email into the box below and then click “Subscribe”. You will receive an email with instructions to confirm your request.

You can unsubscribe at any time.
Revenue Services collects your personal email address under the legal authority of the City of Toronto Act, 2006, Section 8 and Part XII.1, and the City of Toronto Municipal Code, Chapter 778, Taxation, Vacant Home Tax. The information will be used to inform subscribers through email about the Vacant Home Tax including reminders for important submissions dates and due dates. Questions about this collection can be directed to Manager, Customer Service, Revenue Services, 5100 Yonge Street, Toronto, Ontario, M2N 5V7 or by telephone at 416-395-1048.