What is the vacant home tax in Toronto?

Toronto vacant home tax (VHT) is an annual tax on residential properties not used as a principal residence or occupied by tenants for at least 6 months of the year. The rate is 3% of the assessed value. All Toronto homeowners must declare their occupancy status annually.

How do I avoid paying vacant home tax?

To avoid the vacant home tax, your property must be occupied as a principal residence or rented to tenants for at least 6 months of the year. You may also qualify for exemptions such as death of owner, property under renovation, medical care, or legal ownership transfer.

Do I have to declare my home even if its not vacant?

Yes, in Toronto, Vancouver, and Ottawa, all residential property owners must submit an annual declaration of occupancy status, even if the property is occupied. Failure to declare results in the property being deemed vacant and taxed accordingly.

What is the vacant home tax rate?

Tax rates vary by city: Toronto charges 3% of assessed value, Vancouver charges 5% of assessed value, and Ottawa charges 1% of assessed value. These rates are subject to change annually.

Vacant Home Tax in Canada: Toronto, Vancouver, and Ottawa (2026)

What Is Vacant Home Tax?

Vacant home tax (VHT) is a municipal tax on residential properties that sit empty or underutilized. The goal is to increase housing supply by encouraging owners to rent or sell vacant properties.

City	Year Started	Current Rate	Declaration Required
Vancouver	2017	5%	Yes
Toronto	2022	3%	Yes
Ottawa	2023	1%	Yes

Toronto Vacant Home Tax

Tax Rate

Year	Rate
2022	1%
2023	1%
2024	3%
2025	3%
2026	3%

Who Must Declare

All residential property owners in Toronto must submit an annual declaration, even if:

You live in the property
The property is rented
You’ve owned it for less than a year

What Counts as “Vacant”

Status	Vacant?
Owner-occupied all year	No
Rented 6+ months	No
Rented less than 6 months	Yes
Empty all year	Yes
Used as storage	Yes
Occasional use (weekends)	Yes

Declaration Deadline

Tax Year	Declaration Due
2025	February 2026
2026	February 2027

Late declarations result in automatic vacant status and full tax.

Tax Calculation Example

Property Value	Tax Rate	Annual Tax
$500,000	3%	$15,000
$1,000,000	3%	$30,000
$1,500,000	3%	$45,000
$2,000,000	3%	$60,000

Toronto VHT Exemptions

Exemption	Details
Death of owner	Property of deceased within 2 years
Medical care	Owner in hospital/care facility
Renovations	Active permits, uninhabitable
Legal proceedings	Court-ordered vacancy
Transfer of ownership	Sale in progress
Occupancy restricted	Legal prohibition
Principal residence of owner	Full year
Tenant occupied	6+ months

Vancouver Empty Homes Tax (EHT)

Vancouver pioneered the vacant home tax in Canada in 2017.

Tax Rate

Year	Rate
2017	1%
2018	1%
2019	1%
2020	1.25%
2021	3%
2022	3%
2023	5%
2024	5%
2025–2026	5%

Who Must Declare

All residential property owners in Vancouver must declare annually.

What Counts as “Empty”

A property is empty if not:

Principal residence of owner for 6+ months
Rented 6+ months minimum in 30-day periods
Occupied by permitted occupier (family member)

Declaration Deadline

Tax Year	Declaration Due
2025	February 2026
2026	February 2027

Tax Calculation Example

Property Value	Tax Rate	Annual Tax
$1,000,000	5%	$50,000
$2,000,000	5%	$100,000
$3,000,000	5%	$150,000
$5,000,000	5%	$250,000

Vancouver EHT Exemptions

Exemption	Details
Limited-use residential	Strata-restricted rentals
Redevelopment	Active permits
Deceased owner	Estate property
Medical reasons	Care facility
Rental restrictions	Strata bylaws
Heritage property	Designated heritage
Principal residence	6+ months

Ottawa Vacant Unit Tax (VUT)

Tax Rate

Year	Rate
2023	1%
2024	1%
2025	1%
2026	1%

Who Must Declare

All residential property owners in Ottawa must declare annually.

Declaration Deadline

Tax Year	Declaration Due
2025	March 2026
2026	March 2027

Ottawa’s deadline is slightly later than Toronto and Vancouver.

Tax Calculation Example

Property Value	Tax Rate	Annual Tax
$500,000	1%	$5,000
$750,000	1%	$7,500
$1,000,000	1%	$10,000
$1,500,000	1%	$15,000

Ottawa VUT Exemptions

Exemption	Details
Principal residence	Owner-occupied 6+ months
Rented	Tenant occupancy 6+ months
New ownership	Purchased during tax year
Death of owner	Within 2 years
Renovations	Major construction
Court order	Occupancy prohibited
Property for sale	Listed for 6+ months

Comparison: Toronto vs Vancouver vs Ottawa

Feature	Toronto	Vancouver	Ottawa
Rate	3%	5%	1%
Start year	2022	2017	2023
Declaration deadline	February	February	March
Penalty for non-declaration	Deemed vacant	Deemed vacant	Deemed vacant
Minimum occupancy	6 months	6 months	6 months

Tax on $1M Property

City	Annual Tax
Vancouver	$50,000
Toronto	$30,000
Ottawa	$10,000

How to File Your Declaration

Toronto

Visit Toronto’s property tax portal
Log in with your property roll number
Complete the declaration form
Submit before the February deadline

Vancouver

Visit Vancouver’s Empty Homes Tax portal
Log in with your folio number
Complete the declaration
Submit before the February deadline

Ottawa

Visit Ottawa’s Vacant Unit Tax portal
Log in with your property roll number
Complete the declaration
Submit before the March deadline

Penalties for Non-Compliance

Failure to Declare

City	Consequence
Toronto	Property deemed vacant, full 3% tax
Vancouver	Property deemed vacant, full 5% tax
Ottawa	Property deemed vacant, full 1% tax

Late Declaration

City	Penalty
Toronto	$250 fine + deemed vacant
Vancouver	$250 fine + deemed vacant
Ottawa	Administrative fees

False Declaration

Consequence	Penalty
Fine	Up to $10,000
Back taxes	Full vacant tax + interest
Audit	Municipality may audit

How to Avoid Vacant Home Tax

Option 1: Owner Occupancy

Live in the property as your principal residence
Must occupy for 6+ months of the year
Register your address with CRA

Option 2: Rent the Property

Rental Type	Requirements
Long-term rental	6+ months occupancy
Short-term rental	May still be “vacant”
Airbnb	Often does NOT qualify

Option 3: Claim Exemption

If you qualify for an exemption (renovation, medical, death), declare promptly with supporting documentation.

Option 4: Sell the Property

Selling the property removes the vacant home tax obligation. Some cities have exemptions for properties actively listed for sale.

Other Cities Considering Vacant Home Tax

City	Status
Hamilton	Under consideration
London	Under consideration
Halifax	Under consideration
Calgary	Proposed
Regional municipalities	Various

BC Speculation and Vacancy Tax

Note: BC also has a provincial Speculation and Vacancy Tax that applies across most urban areas of BC, separate from Vancouver’s municipal Empty Homes Tax. See our BC Speculation and Vacancy Tax guide for details.

If you own property in Vancouver, you may owe both taxes:

Vancouver Empty Homes Tax (municipal)
BC Speculation and Vacancy Tax (provincial)

Key Tax Dates

2026 Calendar

Date	Event
January	Declaration period opens
February	Toronto/Vancouver deadline
March	Ottawa deadline
May–June	Tax notices issued
July–August	Payment due

Record-Keeping Tips

Document	Keep For
Lease agreements	7 years
Renovation permits	7 years
Medical documentation	7 years
Declaration confirmations	7 years
Utility bills (proof of occupancy)	3 years

Key Takeaways

All owners must declare annually, even if property is occupied
Vancouver has the highest rate at 5%
Toronto charges 3%, Ottawa charges 1%
Properties occupied 6+ months avoid the tax
Failure to declare = automatic vacant status + full tax
Short-term rentals often don’t qualify as “occupied”
Keep records to prove occupancy or exemptions