{"id":29032,"date":"2026-03-12T13:31:01","date_gmt":"2026-03-12T13:31:01","guid":{"rendered":"https:\/\/oneaccounting.webc.in\/latest\/?p=29032"},"modified":"2026-03-24T19:40:26","modified_gmt":"2026-03-24T19:40:26","slug":"what-is-toronto-vacant-home-tax","status":"publish","type":"post","link":"https:\/\/oneaccounting.webc.in\/latest\/what-is-toronto-vacant-home-tax\/","title":{"rendered":"What Is the Toronto Vacant Home Tax?"},"content":{"rendered":"\t\t
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What Is the Toronto Vacant Home Tax? Simple Guide for Property Owners<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The housing market in Toronto has been known for its own challenges. The demand for housing and the shortage thereof have been among the toughest challenges the city has faced. To address this, Toronto has introduced a new concept.
Unique and innovative, this new concept levies the Toronto Vacant Home Tax<\/a> on residents who keep their residential properties vacant. More than a revenue stream for the local body, the tax aims to push more units into rental or sale.
This guide helps you break down everything that property owners need to understand about the VHT, from declarations to penalties.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What Is the Toronto Vacant Home Tax?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The Toronto Vacant Home Tax is an annual municipal tax targeting residential properties left vacant for more than six months in a calendar year. The tax was introduced in 2022 and requires every property owner to declare the status of the occupancy status of their properties every year.\u00a0<\/span><\/p>

Revenue from this tax is used to fund affordable housing initiatives under the city’s HousingTO 2020\u20132030 Action Plan. A property will qualify as vacant if it remains unoccupied for more than 184 days (six months) in total, excluding brief periods under exemptions. Owners should file declarations for the previous calendar year.\u00a0<\/span><\/p>

If any properties are not declared, they will be automatically considered vacant, and appropriate taxes will be levied on them. The taxation is similar to the tax levied in Ottawa. These taxes are intended to boost housing availability in high-demand areas.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Vacant Home Tax Calculation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The VHT or Vacant Home Tax is calculated as a percentage of the property’s Current Value Assessment (CVA). The CVA is set by the Municipal Property Assessment Corporation (MPAC).\u00a0\u00a0<\/span><\/p>

The rate is 3% of CVA in 2026, up from 1% in 2022-23. The formula used for the calculation is quite easy and simple.\u00a0<\/span><\/p>

VHT=CVA\u00d70.03<\/b><\/p>

Let us say you have an unoccupied home with a CVA of $1,200,000, and assume it has been vacant for seven months. The tax you would be\u00a0<\/span><\/p>

VHT = $1,200,000 x 0.03 = $36,000<\/span><\/p>

In 2026, you can make the payment in three easy instalments – September 15, October 15, and November 16, 2026.<\/span><\/p>

The CVA will be updated every four years. It can also change earlier if you have taken up renovations. You can check the latest CVA of your property from your property tax bill or MPAC notice.\u00a0<\/span><\/p>

If the tax amount remains unpaid, interest will accrue at 1.25% monthly (15% annually) on any overdue amount. The outstanding amount is added to the property tax roll for collection. If you have multi-unit properties (e.g., duplexes) under a single roll number, one declaration covers all units if at least one unit meets the occupancy criteria.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Who Must Pay the Toronto Vacant Home Tax?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Every owner of a residential property should declare the property’s status annually. In fact, whether your property is occupied or vacant, you should declare the occupancy status. This includes single-family homes, condos, duplexes, and triplexes.<\/span><\/p>

However, this would exclude fully multi-residential, commercial, industrial, assessed properties, vacant land, or parking\/locker units.\u00a0<\/span><\/p>

If you own multiple units, you should file for each property using the 21-digit assessment roll number. If you are a new owner, you can file the declaration depending on the closing dates for the deal. You can consult your tax consultant, like One Accounting, to get a clear picture of who should file the declaration.\u00a0<\/span><\/p>

It may be noticed that even principal residences need a declaration to prove occupancy. If you are not available at the property, the declaration for the property can be filed by authorised representatives such as lawyers, family members, or other authorised representatives. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Current Vacant Home Tax Rate (2026 Tax Rate)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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As of February 2026, the Vacant Home Tax rate for 2025 (to be filed in 2026) is 3% of CVA. City Council confirms the rate, unchanged from 2024. This is up from 1% and should be a strong incentive to avoid keeping the properties vacant. In fact, that would solve the very purpose of the taxation.\u00a0<\/span><\/p>

There is no sliding scale applicable for VHT. It is flat 3%, unlike some speculation taxes. The rates are configured annually by law. If you have newly constructed and unassessed properties do not need to declare initially. However, they need to declare in the future years. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Which properties are considered vacant?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A property is considered vacant if it remains unoccupied for more than 6 months in a calendar year. The declaration of occupancy must state that the property is the principal residence of the owner through mail, bills, and other supporting documents. For tenants, there should be 30+ day agreements totaling 6+ months. Any rental under six months is not considered.\u00a0<\/span><\/p>

If a residential property is rented out or used for commercial purposes, it is considered to be occupied.\u00a0<\/span><\/p>

If you are a travelling worker, you can declare your principal residence even when you are away. But the residence should be maintained as a home base.\u00a0<\/span><\/p>

If you have a multi-unit property and one unit is occupied, the entire multi-unit property is considered occupied. If you do not declare a property, it will automatically be considered to be vacant, irrespective of whether it is actually occupied or vacant.\u00a0<\/span><\/p>

Of course, you can seek an audit, but these audits will require proof in the form of utility bills, leases, or tax returns.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Exemptions From the Vacant Home Tax<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Well, there are a few exemptions applicable to the Vacant Home tax in Toronto. However, they would need a proper declaration and subsequent audits.\u00a0<\/span><\/p>

Some of the exemptions available for the Toronto Vacant Home tax include<\/span><\/p>