Toronto charges a Vacant Home Tax on residential properties left empty for half the year or more. Every residential owner has to declare their property’s status each year, even if they live in it. This page covers the rate, the rules and the exemptions, all from the City of Toronto. For other cities’ vacancy taxes, see vacant home taxes in Canada.
The rate
Since the 2024 taxation year, the tax is 3% of the property’s Current Value Assessment (CVA), on top of regular property tax.
| CVA | 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
Residential owners must declare their occupancy status each year. If the City doesn’t receive your declaration by April 30, it assumes the property was vacant and sends a Vacant Home Tax bill. You can dispute a bill 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.
What counts as vacant or occupied
A property is vacant if it was vacant for 6 months or more during the taxation year. It counts as occupied if:
- it’s your principal residence for at least 6 months of the year, even if you travel for long periods, as snowbirds do; or
- it’s occupied by tenants or business tenants under written agreements of at least 30 days, for a total of at least 6 months.
Exemptions
A vacant property still has to be declared, but it can be exempt, with supporting documents, if:
- a registered owner died: for up to 3 consecutive taxation years
- the principal resident is in care (hospital, long-term or supportive care) for at least 6 months: for up to 2 consecutive years
- major repairs or renovations prevent occupancy for at least 6 months, all necessary permits have been issued, and the work is moving without unnecessary delay
- the property was sold (a full transfer of ownership) with closing in the taxation year
- the owner or spouse works full-time in Toronto for at least 6 months, with a principal residence outside the Greater Toronto Area
- a court order prohibits occupancy for at least 6 months
Penalties
A false declaration, or failing to provide information when asked, can bring a fine of up to $10,000 on top of the tax. When a property changes hands, the City says buyers and sellers are responsible for arranging the declaration. 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 recent rule changes.