City of Toronto – Vacant Home Tax (VHT) reporting and filing deadline.

UPDATE: the filing deadline for 2023 VHT is February 29, 2024.

The declaration portal is up and running.

By now every homeowner of a residential property in Toronto should have received a letter notification from the City of Toronto about filling out the questionnaire regarding the status of their property for the purpose of the Vacant Home Tax reporting. If you have not received the notice, you will still need to file the declaration or face fines.

The filing is mandatory for every residential property owner in Toronto!!

Background.

In December 2021 the City of Toronto approved the Vacant Property Tax Bylaws, the tax is intended to help with the reduction of empty units due to the housing crisis, and collect fees for empty units to be directed towards the affordable housing initiatives.

VHT calculation.

The Vacant Home Tax is calculated as 1% of the Current Value Assessment (CVA) in the previous year.

Penalties for late filing or not filing.

$250 late filing fee.

Properties without declaration will be deemed vacant and the tax will be assessed.

$250-$10,000 fines for failure to declare, false or deceptive statements, tax avoidance, bylaws non compliance.

How to file.

The filing of the declaration can be done via City of Toronto internet portal, or by mail by sending in a form that can be requested by calling 311.

21 digit assessment roll number from the property tax bill or statement is required.

Residential properties not subject to the VHT.

Most properties will not be subject to the tax, here is the list of exemptions:

• Principal residence of the home owner occupied for more than 6 months during the year.
• Principal residence of the occupant permitted to occupy the property for 6 months or more. The permitted resident is not a tenant or subtenant and may be, but it’s not limited to, family members or a friend.
• Property tenanted for 6 or months during the year.
• Eligible exempt properties.

Eligible exempt properties.

Below are reasons which qualify vacant properties for the exemption from VHT.

• Death of the registered owner – property was vacant for six month or more due to the passing of the registered owner.
• Repairs or renovations – the property is vacant due to renovations and all of the following conditions are met:
  • Occupation and normal use of the vacant property is prevented by the repairs and renovations.
  • All necessary permits have been issued for the repairs and renovations.
  • The City’s Chief Building Official is of the opinion that the repairs or renovations are being actively carried out without unnecessary delay.
• Principal resident is in care – the principal resident of the vacant property is in a hospital, long term care or supportive care facility for up to 6 months during the taxation year. This exemption may be claimed for up to two consecutive taxation years.
• Transfer of legal ownership – You purchased your property in the previous year, and the sale involves a 100% transfer of an interest in the property to an unrelated individual or a corporation. This excludes name changes, adding a second owner or removing an owner.
• Occupancy for full-time employment – The vacant property is required for occupation for employment purposes for a total of at least six months in the taxation year, by its owner who has a principal residence outside of GTA.
• Court order – There is a court order in force which prohibits the occupancy of the vacant property for at least six months of the taxation year.

For more information please contact us or visit City of Toronto Vacant Home Tax page.