In 2021, the City of Toronto introduced an annual tax to be levied on vacant Toronto residential property, payable beginning in 2023.
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 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.
Some of the eligible exemptions include the following:
- Death of the registered owner and where the principal resident is in a hospital, long-term or supportive care facility.
- Vacant property is undergoing repairs or renovations.
A VHT of one per cent (1%) of the Current Value Assessment of the property will apply to residences that are vacant or deemed vacant. The following is an example of how the VHT is calculated:
- Current Value Assessment is $1,000,000 x 1 % = $10,000
The tax is based on the property’s occupancy status for the previous year, therefore, if the property was vacant in 2022, the tax will be payable in 2023.
Making the declaration
The most efficient way to make the declaration is go to the following City of Toronto website:
To make the declaration, you will need the following information:
- Assessment roll number and customer number from you tax bill or property tax account statement. These numbers can also be found on the yellow notices sent by the City of Toronto
Alternatively, you can request a paper declaration by contacting 311 – Toronto at your Service and submit the completed declaration by February 2, 2023.
A late declaration or failure to make a declaration will result in a minimum fine of $250 and a maximum fee of $10,000. It may also result in your property being deemed vacant. Once deemed vacant, your property will be subject to the VHT, and you will be issued another notice.
If you have any questions or would like more information on the VHT, please contact a member of our Tax group.