Toronto's Vacant Home Tax is an annual municipal tax on residential properties left unoccupied for more than six months in a calendar year. The current rate is 3% of the property's assessed value, and every residential property owner in Toronto must file an occupancy declaration each year, even if they live in the home.
The City of Toronto introduced the Vacant Home Tax in 2022 to increase housing supply by encouraging owners to occupy, rent, or sell properties rather than leaving them empty. Revenue collected through the program is directed toward affordable housing initiatives. The tax rate was originally 1% of the property's Current Value Assessment (CVA) for the 2022 and 2023 taxation years, then increased to 3% beginning with the 2024 taxation year. The CVA is set by the Municipal Property Assessment Corporation (MPAC), not by market sale prices, so the taxable value may differ from what a property would sell for today.
At the 3% rate, a property with a CVA of $800,000 would face a tax of $24,000 if deemed vacant. For a property assessed at $1,000,000, the bill would be $30,000.
The annual declaration covers the previous calendar year. For the 2025 taxation year, the declaration deadline is April 30, 2026, and the portal opened on November 1, 2025. Owners can submit their declaration online through the City's Vacant Home Tax portal, by calling 311, or in person at Toronto City Hall or a civic centre. If a property owner fails to declare by the deadline, the City may deem the property vacant and apply the tax regardless of actual occupancy.
Several exemptions exist. Properties that are the owner's principal residence are not subject to the tax. Other exemptions may apply in cases involving the death of the owner, major renovations with valid building permits, the owner's hospitalization or long-term care, court orders preventing occupancy, or occupancy by an eligible tenant or family member. Owners claiming an exemption must provide supporting documentation with their declaration.
False declarations or failure to provide requested information can result in fines of up to $10,000 in addition to the tax itself. Overdue amounts are charged interest at 1.25% on the first day of default and on the first day of each calendar month thereafter. All records related to occupancy or exemption claims must be kept for three years. Understanding the full picture of ownership costs, including closing costs when buying a home in Toronto, can help buyers and investors plan ahead.