Toronto’s Vacant Home Tax set to increase to 3% in 2024.
Tuesday Oct 10th, 2023
For 2024 taxation year the Toronto Vacant Home Tax is set to increase from 1% to 3% annually of the assessed property value. In addition to the increase of the tax rate the following changes have been approved:
- Change to payment due dates.
- Change to the definition of the current value assessment.
- Clarification of the six months period which means 183 days.
- Expansion of the definition of the tenant to include business tenant in situations where the property is assessed as residential but occupied by business tenants.
- Addition of new exemptions for newly built housing that is vacant for up to two consecutive years taxation years.
- Reduce the complaint period.
- Extension of the declaration deadline to the last business day of February of the following year.
- Change to the requirements for the exemption for repairs and renovations.
2022 was the first year of the implementation of the Vacant Home Tax in Toronto, the city reports 95% compliance rate, of which 2,336 were declared vacant resulting in $16,458,338 of tax revenues with 44,902 properties deemed vacant by March 16, 2023. This number was reduced down to 17,437 properties as of August 1, 2023. The final number won’t be known until April 15, 2024 (this may be further extended to December 31, 2025) which is the deadline for filing the notice of complaint.
For 2023 the declaration portal is expected to open late October/early November 2023.
For more details of the approved changes, past results and projections for the future, please visit the Update On The Vacant Home Tax Status and let us know if you have any questions.