Toronto Home Owners: Beware New Vacant Home Tax effective in 2023

By Slonee Malhotra

Find our most recent article on this topic here. 

In a further effort to increase the supply of housing, the City of Toronto has announced a new annual tax which will be applicable beginning in 2023 for all vacant Toronto residences. The amount of the tax shall be 1% of the property’s current assessed value.

To be considered “vacant”, the residence must have been unoccupied for at least 6 months in the previous calendar year. There are situations in which a property will be exempted from paying the tax.

All residential property owners in Toronto will be required to declare the status of their property or properties 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 and is payable.

Declarations of occupancy status should be made through Toronto’s secure online declaration portal. If required, homeowners can receive a paper declaration form by contacting 311. 

For residential properties that are occupied, but not by the homeowner(s), owners will be required to submit information about tenants and/or permitted occupants when making the declaration.

Residential properties will be deemed vacant if the owner fails to make the annual declaration by the deadline and/or provide supporting documentation.

The deadline for submission is February 2. There are penalties associated with filing late as well as with making a false declaration.

Contact our real estate lawyers to learn more today.