Toronto charges a Vacant Home Tax (VHT) on residential properties left empty for half the year or more. In short: Toronto's Vacant Home Tax is 3% of the Current Value Assessment of a residential property that was vacant for 6 months or more in the taxation year: every residential owner declares the property's status each year, even if they live in it, and a property with no declaration by April 30 is assumed vacant and billed.
This page covers the rate, the rules and the exemptions, all from the City of Toronto. It is part of the real estate tax hub. For other cities’ vacancy taxes, see vacant home taxes in Canada; for British Columbia’s provincial tax, see the B.C. speculation and vacancy tax.
The rate
Since the 2024 taxation year the tax is 3% of the property's Current Value Assessment. It is charged on top of regular property tax.
Two hypothetical assessments:
| Current Value Assessment | Vacant Home Tax |
|---|---|
| $700,000 | $21,000 |
| $1,000,000 | $30,000 |
The 2025 tax is payable in three instalments: September 15, October 15 and November 16, 2026.
Who must declare, and when
If the City doesn't receive a declaration by April 30, it assumes the property was vacant and sends a Vacant Home Tax bill, which can be disputed with a Notice of Complaint. You don’t need to declare for property assessed fully as multi-residential, commercial or industrial, vacant land without a structure, or a parking space or condo locker. A separate declaration is needed for each property you own.
What counts as occupied
A property is vacant if it was vacant for 6 months or more during the taxation year, unless it counts as occupied:
- A home counts as occupied if it is the owner's principal residence for at least 6 months of the year, even if the owner is away for long periods for travel or work.
- It also counts as occupied if tenants or business tenants with written agreements of at least 30 days occupy it for a total of at least 6 months, or family or friends live there as their principal residence for at least 6 months.
Exemptions
A vacant property still has to be declared, but it is exempt, with supporting documents, if one of these applies:
- Death of a registered owner: the property was vacant 6 months or more because an owner died, claimable for up to 3 consecutive taxation years.
- Principal resident in care: the principal resident is in a hospital, long-term or supportive care facility for at least 6 months of the year, claimable for up to 2 consecutive taxation years.
- Repairs or renovations: major work prevents occupancy for at least 6 months, all necessary permits have been issued, and the City considers the work to be moving without unnecessary delay.
- Transfer of legal ownership: the sale closed in the taxation year and transferred the whole property (name changes and adding or removing a second owner don't count).
- Full-time employment: the owner or their spouse works full-time in Toronto for at least 6 months and the owner's principal residence is outside the Greater Toronto Area.
- Court order: an order in force prohibits occupancy for at least 6 months of the year.
- Vacant new inventory: a developer's newly built unit that has never been occupied and was offered for sale to the public during the year, claimable for up to two consecutive years.
- Secondary residence for medical reasons: the unit is needed by the owner, their spouse or a dependant for medical reasons, and the principal residence is outside the Greater Toronto Area.
Penalties and buying a property
- A false declaration, or not providing information when asked, can bring a fine of up to $10,000 on top of the tax.
- Unpaid Vacant Home Tax is a lien on the property, so a buyer can be held responsible for tax on a property the seller never declared.
The City says buyers and sellers are responsible for making sure the declaration is filed, and that a seller should give the buyer a copy of it. If the previous owner didn’t declare, it encourages the new owner to contact their lawyer and have the seller document the occupancy or exemption status.
The federal Underused Housing Tax no longer applies for 2025 and later years; see the Underused Housing Tax.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and October 1, 2026. How we check facts.
- Canada Revenue Agency: Introduction to the Underused Housing Tax
- City of Toronto: Vacant Home Tax – City of Toronto