Toronto Vacant Home Tax in Effect January 1, 2023
Tuesday Jan 03rd, 2023
The City of Toronto's Vacant Home Tax (VHT) was created to improve the supply of housing in the city. Beginning in 2023, residential properties that are unoccupied for more than six months (cumulative) in a calendar year may be subject to the new tax, unless they meet one of the exemptions.
What you Need to Know
A declaration form will need to be completed by property owners by February 2, 2023.
A property is considered vacant if it is not the principal residence of the owner or any permitted occupants or was not occupied by tenants for at least six months during the previous calendar year or is otherwise deemed to be vacant under the Bylaw.
The tax is 1 per cent of the current value assessment (CVA) of the home.
Exemptions include: principal residence, death, repairs, units undergoing major renovation, owner is in care or hospital, court order, transfer of legal ownership and occupancy for full time employment is in place.
The goal of the VHT is to increase the supply of housing by discouraging owners from leaving their residential properties unoccupied. Homeowners who choose to keep their properties vacant will be subject to this tax.