Toronto Vacant Home Tax: What is Vacant Home Tax? Amount of Tax, Last Date & More

Discover detailed information on the Toronto Vacant Home Tax, including its definition, rates, declaration requirements, and exemptions. This page provides a detailed summary to assist Toronto homeowners in successfully navigating the Vacant Home Tax system.

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What is the Toronto Vacant Home Tax?

Toronto homeowners may be subject to the Vacant Home Tax if their property is classed as a “Vacant Unit.” To comply with requirements, residential property owners must disclose the occupation status of their home on a yearly basis, regardless of whether they live there.

The major goal of establishing the Vacant Home Tax is to increase housing supply in the city.

The Purpose Behind the Tax

Toronto, like many other thriving cities, experiences a tremendous demand for housing. When homes are empty, it reduces the available housing stock and raises prices. The Vacant Home Tax encourages homeowners to occupy or rent out their properties, improving the city’s housing supply.

How Much is the Vacant Home Tax?

The actual amount of the Vacant Home Tax varies, however it is typically a percentage of the property’s assessed value. For example, if your property is worth $1 million and the tax rate is 1%, you would pay $10,000 each year.

Declaring Occupancy Status and Payment Deadlines

The Vacant Home Tax applies to property owners who register their occupancy status as “Vacant.” There are precise dates for declaring occupancy and paying the unoccupied tax, and the 2024 deadline is February 29, 2024. Property owners can make their declarations via mail or online at the official City of Toronto website.

How to Submit the Declaration Online?

Online submission through the City of Toronto’s website is the most convenient way to declare occupancy status. To begin the procedure, property owners should go to the “Submit Declaration Online” section of the Vacant Home Tax page. Before proceeding, please study and agree to the terms of use and notice of collection provided on the site.

What is Vacant Home Tax? Amount of Tax, Last Date & More

Required Documents for Online Declaration

Property owners should have the following documentation with them when filing their declaration online:

  • Assessment Roll Number
  • Vacant Home Tax Exemption documents (if applicable)
  • Customer Number

The customer number, which appears on the property tax bill, is normally 6 to 9 digits. To start the online declaration application, enter your customer number and assessment roll number.

Determining Vacancy and Exemptions

What Characterizes a Vacant Property?

A property is considered vacant if it has been unoccupied for six months or more throughout the tax year. Failure to record occupancy status or submit supporting documentation will also result in the property being declared unoccupied.

Exemptions from the Vacant Home Tax

Exemptions are available for properties subject to the Vacant Home Tax, including:

  • The registered owner died.
  • Property being repaired or renovated
  • Primary resident receiving care
  • Court order.
  • Vacant fresh inventory.
  • Full-time employment occupancy

To claim an exemption, property owners must provide appropriate documentation at the time of declaration. For example, when claiming an exemption because the registered owner died, a copy of the death certificate is required.

Vacant Home Tax Rates in Toronto

Toronto’s Vacant Home Tax rate is currently set at 1% of the Current Value Assessment (CVA). The tax rate is expected to rise to 3% of the CVA in 2024.

Calculation Examples

  • Current Rate: For a property with a CVA of $1,000,000, the Vacant Home Tax would be 1% of $1,000,000, resulting in a tax of $10,000.
  • 2024 Rate: With the new 3% rate for 2024, the Vacant Home Tax for a property valued at $1,000,000 would be 3% of $1,000,000, amounting to $30,000.

Payment Details

The Vacant Home Tax is determined using the property’s CVA from the prior year. For example, if a property is empty in 2025, the tax will be determined based on the 2025 CVA, with payment due in 2026.

Understanding the Vacant Home Tax system enables homeowners to comply with legislation and make informed decisions about their homes.

FAQs on Toronto Vacant Home Tax

Who is required to pay the Toronto Vacant Home Tax?

Property owners with residential properties that are vacant for a certain period are required to pay the tax.

What is the purpose of the Toronto Vacant Home Tax?

The primary purpose is to increase the availability of housing by encouraging property owners to rent out or sell their vacant properties.

How can I apply for an exemption from the Toronto Vacant Home Tax?

Property owners can apply for an exemption through the city’s website or by contacting the municipal tax office with supporting documentation.

How has the Toronto Vacant Home Tax impacted housing affordability?

The tax has helped to stabilize and reduce rental and housing prices by increasing the supply of available properties.

Are there any exemptions to the Toronto Vacant Home Tax?

Yes, certain properties, such as those under renovation or part of a deceased estate, may qualify for exemptions.

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