Toronto Home Owners MUST Declare by Feb 2nd: Toronto's New 'Vacant Home Tax'

A new City of Toronto tax called the Vacant Home Tax (VHT) will be levied, annually, on vacant Toronto residences beginning this year. All Toronto residential property owners must submit a declaration of their property's occupancy status by February 2, 2023.  VHT on vacant homes will be calculated at 1% of the property's current assessed value (not market value). The goal of the Vacant Home Tax is to increase the supply of housing by discouraging owners from leaving their residential properties unoccupied.

If you own a home in Toronto, you are required to submit a declaration as to whether your residence is occupied or vacant. A property is considered vacant when it was/is not used as a principal residence by the owner. or any permitted occupants, or was unoccupied, for a total of 6 months or more, during the calendar year. Homeowners who choose to keep their properties vacant will be subject to the new VHT.

There are exemptions though:

1) Properties that are/were vacant for 6 months or more in the previous year due to the death of an owner

2) The vacant property is undergoing repairs or renovations and normal use of the vacant property is prevented by these repairs/renovations. All necessary permits must have been issued and the City's Chief Building Official believes the repairs/renovations are being done without unnecessary delay.

3) The principal residence of the vacant property is in a hospital, long term/supportive care facility for at least 6 months during the taxation year. This claim can be made for up to 2 consecutive tax years.

4) The property was purchased in the previous year and the sale involved a 100% transfer of interest to an unrelated individual or corporation. However, this excludes name changes, adding a 2nd owner and removing a 2nd owner.

5) The property is required for occupation for employment purposes for at least 6 months in the tax year, by its owner who has a principal residence outside of the GTA.

6) There is a court order in force which prohibits occupancy of the vacant property for at least 6 months of the taxation year

The goal of this tax is to increase housing supply by discouraging owners from leaving their residences unoccupied. 

So that you can make your mandatory declaration by Feb 2nd, here is the City of Toronto portal so you can download the form and submit it. If you don't, the City will assume your property is vacant and you will be charged this VHT tax. In order to complete the form, you will need your Assessment Roll Number, as well as your Customer Number, both of which are located on the right-side panel of your property tax bill. 

City of Toronto portal:  https://www.toronto.ca/ services-payments/property- taxes-utilities/vacant-home- tax/

If you have any questions, or need help with this, please let me know either by phone 416-721-6041 or email: nbiderman@rogers.com    I am always here to help you.