Have you heard about the Toronto Vacant Home Tax and have you taken the time to declare the occupancy status of your home? If your home is occupied and you haven’t declared as such, you could end up paying a lot of extra money when the tax bill arrives.
A Vacant Home Tax of one per cent of the Current Value Assessment (CVA) will be imposed on all Toronto residences that are declared, deemed or determined 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).
https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/?accordion=exemptions
The original deadline to declare the status of you home was February 2, 2023. This deadline has been extended and is now the end of February.
The tax was introduced as a measure to get unused potential units bank on the rental and real estate markets. As John Tory stated, “Even people who go to Florida for a few months are living in their homes, they’re not vacant, we’re looking for those homes that are completely empty.”
See below for more details directly from the City Of Toronto website.
Vacant Home Tax
Mandatory Declaration of Occupancy Status
All residential property owners in Toronto are required to declare the occupancy status of their property annually. Even if they live there. Declarations must be made by the homeowner or someone acting on behalf of the owner. The declaration will determine whether the Vacant Home Tax applies.
Vacant Home Tax Calculation
A Vacant Home Tax of one per cent of the Current Value Assessment (CVA) will be imposed on all Toronto residences that are declared, deemed or determined 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).
The tax is based on the property’s occupancy status for the previous year. For example, if the home is vacant in 2022 the tax will become payable in 2023.
How to Declare
To make a declaration you will need your 21-digit assessment roll number and customer number from your property tax bill or property tax account statement.
Declarations of occupancy status should be made through the City’s secure online declaration portal. If required, homeowners can complete a paper declaration form . The paper form must be completed in full and received by the City of Toronto before the deadline to avoid being issued a fine and having your property deemed vacant. Incomplete forms will not be accepted. The submission address is on the bottom of the declaration form. Please be aware of Canada Post delivery times. For the best user experience, use the free Adobe Acrobat Reader software to complete and save the fillable form.
For residential properties that are not occupied by the homeowner, an audit may be required. If the City conducts an audit, owners may be required to submit information or documentation about tenants and/or permitted occupants to confirm occupancy during the taxation period.
For residential properties declared as vacant for six months or more during the taxation year and without an eligible exemption, owners will be required to pay the Vacant Home Tax.
Owners of properties subject to the tax will be issued a Vacant Home Tax Notice in March/April and payment will be due on May 1.
Residential properties will be deemed vacant if the owner fails to make the annual declaration by the deadline and/or provide supporting documentation.
If there is an error in the declaration you submitted, you can:
- submit a new declaration prior to the February 2 declaration deadline
- file a Notice of Complaint if it is after the declaration deadline
Failure to declare or making a false declaration may result in a fine of $250 to $10,000.