Toronto Vacant Home tax: What is Vacant Home tax and How Much is it in Toronto?

The Vacant Home Tax, also known as the Vacant Home Rebate Program, is a policy implemented by the City of Toronto to address housing affordability and availability issues. The tax aims to encourage property owners to either occupy their properties or rent them out rather than leaving them vacant.

Under this tax, property owners are required to declare whether their property is vacant or not. If a property is deemed vacant for a certain period, the owner may be subject to a tax on the property’s assessed value. The exact amount of the tax and the criteria for determining vacancy may vary depending on the city’s regulations.

For specific details about the Toronto Vacant Home Tax, including how much it is and how it is implemented, I recommend consulting official sources such as the City of Toronto website or contacting relevant municipal authorities for the most accurate and up-to-date information.

Toronto Vacant Home Tax

In Toronto, homeowners are liable for the Vacant Home Tax if their property meets the criteria of a “Vacant Unit.” This means that residential property owners must annually declare the status of their property, regardless of whether they reside in it or not.

As a result, homeowners who opt to leave their properties vacant will be required to pay the Toronto Vacant Home Tax. The primary objective behind implementing this tax is to address the issue of housing supply by encouraging the utilization of available properties rather than leaving them unoccupied.

By incentivizing property owners to either occupy or rent out their properties, the Vacant Home Tax aims to contribute to a more efficient use of housing stock and potentially increase the availability of homes for residents in Toronto.

What is Vacant Home tax?

As an illustration, the deadline for declaring the occupancy status for the year 2024 is February 29, 2024. Individuals have the option to submit their declaration of occupancy status either by mail or online through the official website of the City of Toronto.

This deadline provides property owners with a specific timeframe to fulfill their obligation and ensures that the process is conducted efficiently and transparently. By offering multiple submission methods, the city aims to accommodate the diverse needs of property owners while enforcing compliance with the Vacant Home Tax regulations.

How to submit the Declaration Online?

To submit the occupancy status online, visiting the City of Toronto’s website is the most efficient method. Simply navigate to the Vacant Home Tax page and click on the “Submit Declaration Online” button.

Once you click on this button, you’ll encounter various terms of use and a notice of collection. It’s essential to carefully read through these terms before proceeding. After reviewing them, you’ll need to check the box indicating that you’ve read and agree to the declaration.

By ensuring that property owners are aware of and consent to the terms outlined by the city, this process aims to facilitate a transparent and legally compliant declaration of occupancy status.

Before starting the online declaration application for the Vacant Home Tax, make sure you have the following documents ready:

1. Assessment Roll Number
2. Vacant Home Tax Exemption documents (if applicable)
3. Customer Number

You can find your customer number on your property tax statement, and it typically ranges between 6 to 9 digits.

Once you have these documents prepared, you can begin the online declaration application by entering your customer number and assessment roll number.

After completing the declaration process, owners who have declared their occupancy status as “Vacant” can expect to receive a Notice by the end of March.

It’s important to note that you don’t need to make a declaration if:

1. Your home has not yet been assessed.
2. The MPAC has designated the property as either a parking space, vacant land, or a condominium locker.
3. The property falls into commercial, multi-residential, or industrial classes.

By adhering to these guidelines, property owners can ensure a smooth and accurate declaration process for the Vacant Home Tax.

What is a Vacant Property?

A vacant property is defined as one that has remained unoccupied for six months or longer during a tax year. If the owner fails to report the occupancy status or provide supporting documents, the property will be deemed vacant.

Therefore, a residential property is considered vacant if it meets any of the following criteria:

1. Hasn’t been occupied for six months or more.
2. Is not eligible for vacant home exemption.
3. Is deemed vacant due to the owner’s failure to submit the status or supporting documents.

However, certain exemptions exist that can exempt a property from this tax. These exemptions include:

1. Registered owner’s death
2. Undergoing repairs or renovation
3. Principal resident is in care
4. Court order
5. Vacant new inventory
6. Occupancy for full-time employment

Each type of exemption requires specific documents to be submitted by the owner when claiming the exemption. These documents must be submitted at the time of declaration submission. For example, if claiming an exemption for the registered owner’s death, a copy of the death certificate must be provided.

By adhering to these guidelines, property owners can ensure compliance with the Vacant Home Tax regulations and potentially qualify for exemptions where applicable.

How Much is Vacant Home Tax in Toronto?

Currently, the Vacant Home Tax in Toronto stands at 1% of the Current Value Assessment (CVA). However, there are upcoming changes for the 2024 tax year, where the Vacant Home Tax will increase to 3% of the CVA.

To illustrate, let’s consider a home with a CVA of $1,000,000:

• Under the current 1% rate, the Vacant Home Tax would be $10,000 (1% of $1,000,000).
• With the upcoming 3% rate for the 2024 tax year, the Vacant Home Tax would increase to $30,000 (3% of $1,000,000).

It’s important to note that the Vacant Home Tax is calculated based on the property’s CVA for the previous year. For instance, if a home is vacant in 2025, the tax would be calculated using the CVA for the year 2025, and the payment would be made in 2026.

These changes reflect the city’s efforts to address housing availability issues and encourage property owners to occupy or rent out their properties rather than leaving them vacant.