Toronto Vacant Home Tax Declaration: A Comprehensive Guide
- Understanding the Vacant Home Tax (VHT)
- How to Submit Your Toronto Vacant Home Tax Declaration
- Determining Your Property's Occupancy Status
- Other Residency Situations
- Eligible Exemptions for the Vacant Home Tax
- Change of Ownership and the Vacant Home Tax
- Paying the Vacant Home Tax
- Disputing Your Bill and Responding to Audits
- Reporting a Suspected Vacant Property
- Terms of Use and Privacy
- Conclusion
The City of Toronto has implemented a Vacant Home Tax (VHT) to address housing availability and affordability. This tax is designed to encourage homeowners to either rent out or sell their unoccupied properties, thereby increasing the housing supply. Understanding the requirements and procedures for the Toronto Vacant Home Tax declaration is crucial for all residential property owners in the city.
The Toronto Vacant Home Tax declaration is an annual requirement for all residential property owners in Toronto. This mandatory declaration requires homeowners to inform the City of Toronto about the occupancy status of their property for the preceding year. Failure to submit this declaration by the deadline will result in the property being deemed vacant and subject to the tax.
Understanding the Vacant Home Tax (VHT)
The Vacant Home Tax (VHT) is a key component of Toronto's strategy to improve housing availability. The primary objective is to dissuade homeowners from leaving their residential properties unoccupied for extended periods. The revenue generated from this tax is specifically allocated to fund affordable housing initiatives within the city.
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The VHT program requires that all Toronto homeowners declare the occupancy status of their property. This declaration must be submitted every year, notifying if the residence was occupied or vacant. The submission deadline for declaring the property's 2024 occupancy status is April 30, 2025.
How to Submit Your Toronto Vacant Home Tax Declaration
Submitting your annual declaration is a straightforward process. The City of Toronto offers several convenient methods to ensure every homeowner can comply with the requirement. To complete your declaration, you will need your property's assessment roll number and customer number, which can be found on your property tax bill, property tax account statement, or Vacant Home Tax notice.
Online Declaration (Recommended)
The City of Toronto's online portal provides the quickest and most secure method for submitting your declaration. Simply visit the City's designated website and follow the instructions. The online system is designed to be user-friendly and efficient.
Declaration by Phone
For properties that were occupied, homeowners can declare their occupancy status by phone. You can call 311 or 416-392-2489. This method is exclusively for those declaring their property as occupied; those claiming exemptions or declaring a property vacant must use the online portal or in-person options.
In-Person Declaration
In-person declaration services are available at designated City locations. Check the official City of Toronto website for the addresses and operating hours of these locations.
Determining Your Property's Occupancy Status
Understanding the different occupancy classifications is essential for accurately completing your Toronto Vacant Home Tax declaration. The City defines several categories, each with specific implications for the tax.
Residential property owners must declare annually, regardless of their occupancy situation or eligibility for exemptions. The majority of homeowners, who reside in their homes or have them legitimately tenanted, will not owe the tax. It's crucial to declare by the April 30, 2025, deadline to avoid automatic assessment of the tax. A Vacant Home Tax Notice will be dispatched in May 2025 to those whose properties are subject to the tax.
Principal Residence
If the property is your primary residence, where you live, receive mail, and pay bills, it is considered occupied, and the tax does not apply. You can only have one principal residence. This holds true even if you are away for extended periods due to travel or work (e.g., snowbirds), provided the property remains your primary residence for at least six months of the taxation year.
Occupied by Someone Other Than the Owner
If the property is occupied by tenants, family members, or friends, it is generally not subject to the tax. Tenants must have a written agreement for a term of at least 30 days, totaling at least six months within the year. Family or friends must occupy the property as their *principal residence* for at least six months of the year to qualify.
Vacant with an Eligible Exemption
If your property is vacant but qualifies for a specific exemption, you must still declare its status and provide the necessary supporting documentation. The City of Toronto recognizes several valid exemptions, which are detailed below.
Vacant
A residential property is considered vacant if it was unoccupied for six months or more during the taxation year and does not qualify for any exemption. Crucially, a property will be *deemed* vacant if the owner fails to submit a declaration of occupancy status by the deadline, regardless of its actual occupancy status.
Other Residency Situations
Several specific scenarios require clarification within the context of the Vacant Home Tax.
- Snowbirds and Extended-Stay Travelers: The VHT allows homeowners to be away from their principal residence for travel, work, or other reasons. As long as the property remains your principal residence, you declare it as occupied.
- Condo Units: Each condo unit owner must submit a separate declaration. Tax applicability depends on the individual unit's occupancy status.
- Properties with Multiple Units (Single Roll Number): For properties like duplexes or triplexes with one roll number, only one declaration is required. If at least one unit was occupied for six months or more, the entire property can be declared as occupied.
- Owners of Multiple Properties: A separate declaration must be submitted for each property owned.
- Principal Resident Away Due to Medical Reasons: If the principal resident is receiving outpatient care or caring for a sick family member, the property remains their principal residence and can be declared occupied. If admitted to a care facility for over six months, refer to the "Principal Resident in Care" exemption.
- Residential Property Used for Business Operations: A residential unit used for business can be declared as occupied. The definition of "tenant" includes business tenants, covering situations where the owner or a tenant operates a business from the unit.
Eligible Exemptions for the Vacant Home Tax
Even if a property is vacant, it may be exempt from the tax if it meets specific criteria. It is essential to provide supporting documentation when claiming an exemption.
Important Note: Avoid submitting personal medical documents or photographs as supporting documentation. Focus on the required documentation specified for each exemption.
| Eligible Exemption | Criteria | Supporting Documentation Required |
|---|---|---|
| Death of a Registered Owner | The property was vacant for six months or more due to the death of an owner. Can be claimed for up to three consecutive taxation years if the owner died in the taxation year or the two preceding years. | Copy of death certificate. |
| Principal Resident in Care | The principal resident is in a hospital or long-term care facility for at least six months of the year. Can be claimed for up to two consecutive taxation years. | Signed letter from the healthcare facility on letterhead; and proof of principal residence at the subject property prior to entering care. |
| Repairs or Renovations | Major repairs or renovations prevent occupancy for at least six months of the year. All necessary permits must be issued, and the City must deem the work to be actively carried out without unnecessary delay. | Description of the project preventing occupancy, along with supporting documents (e.g., work orders, contractor receipts); and a copy of building permits (if applicable). |
| Transfer of Legal Ownership | The closing date of the property purchase was within the taxation year being declared. The sale involved a 100% transfer of the property (excluding name changes or adding/removing owners). | Copy of land transfer deed. |
| Occupancy for Full-Time Employment | The vacant unit is required for the owner or their spouse's full-time employment in Toronto for at least six months of the year. The owner must have a principal residence outside the Greater Toronto Area. | Proof of residency outside the Greater Toronto Area; and a signed letter from the employer on company letterhead, or an employment contract confirming the requirement of physical presence in Toronto for work. |
| Court Order | A court order prohibits occupancy of the property for at least six months of the taxation year. | Copy of court order. |
| Vacant New Inventory (Beginning 2023) | This exemption can be claimed by the developer of a newly constructed residential unit for up to two consecutive years if it wasn't occupied, wasn't used as a residence, was actively offered for sale, and the owner is the developer. | Sales listing from the taxation year; and proof that the registered owner is the developer. |
| Secondary Residence for Medical Reasons (Beginning 2024) | The vacant unit is required by the owner, their spouse, or a dependent for medical reasons, and their principal residence is outside the Greater Toronto Area. | Proof of residency outside the Greater Toronto Area; and a completed Vacant Home Tax Medical Treatment Certificate Form (PDF). |
Change of Ownership and the Vacant Home Tax
Property transactions have specific implications regarding the Vacant Home Tax. Both purchasers and vendors need to be aware of their responsibilities.
- It is the responsibility of both parties to ensure the declaration of occupancy status is submitted.
- Vendors should provide purchasers with a copy of the completed and filed declaration.
- Purchasers should conduct due diligence to be aware of any potential tax liabilities.
Who Should Submit the Declaration Based on Sale Timing?
- Scenario A: Property Sold Within the Taxation Year: Either the vendor or purchaser can submit the declaration. The property qualifies for the "transfer of legal ownership" exemption.
- Scenario B: Property Sold After the Taxation Year: The vendor must submit the declaration, as only they know the occupancy status for the prior year. Purchasers of undeclared properties should contact their solicitor.
Consequences of No Declaration
If no declaration is submitted, the property is deemed vacant, and the tax applies. The Vacant Home Tax forms a lien on the property, and the purchaser becomes responsible for payment.
Power of Sale Considerations
Buyers purchasing a property through power of sale acquire it "as is" and are responsible for associated taxes, including the Vacant Home Tax. Power of sale does not constitute an exemption. New owners should contact their lawyer and obtain documentation from the vendor proving occupancy or exemption status.
Paying the Vacant Home Tax
The tax rate for the 2022 and 2023 taxation years was 1% of the property's Current Value Assessment (CVA). Starting with the 2024 taxation year, the tax rate increases to 3% of the CVA. Vacant Home Tax payments for 2024 are due in three equal installments on September 15, October 15, and November 17, 2025.
Payment Methods
- Financial Institutions: Pay through online banking, telephone banking, ATM, or in person. Use your 21-digit assessment roll number to register for online banking. Refer to the provided list of payee listings for various banks (BMO, CIBC, National Bank, RBC, Scotiabank, TD Canada Trust). Contact your institution if it's not listed.
- MyToronto Pay: Pay by electronic funds transfer (no fee) or credit/debit card (convenience fee applies). Note: Pre-authorized payments only cover property taxes; VHT must be paid separately.
- Mail-In Payment: Send a post-dated cheque payable to "Treasurer, City of Toronto" to the specified address.
- Inquiry & Payment Counters and Drop Box Services: Visit the City's Property Tax and Utilities Inquiry & Payment Counters. Payment options include cash, cheque, money order, or debit card. Drop boxes accept cheques or money orders.
Late Payments and Fees
Late payments incur interest charges of 1.25% on the first day of default and the first day of each subsequent month. Unpaid amounts are added to the property tax roll. Dishonored/failed payments incur an NSF fee. False declarations or failure to provide requested information can result in fines up to $10,000, plus payment of the tax.
Disputing Your Bill and Responding to Audits
Homeowners have the right to dispute a Vacant Home Tax bill and may be subject to audits.
Disputing Your Bill
Submit a Notice of Complaint if you believe your property was incorrectly assessed for the tax. You can dispute the bill if your property was occupied, qualifies for an exemption, or if the assessment value has changed.
- Disputing 2022 or 2023 Bills: File a Notice of Complaint online. The deadline is December 31, 2025.
- Disputing 2024 Bills: Notices of Complaint for 2024 cannot be submitted until Vacant Home Tax Notice of Assessments are issued (June 2025). The deadline to file a complaint for 2024 will be December 31, 2025.
If a declaration isn't received by the April 30 deadline, the property will be assumed vacant. You may be asked to provide supporting documentation after submitting your Notice of Complaint. You have 60 days to submit documents through the online portal.
Appealing the Notice of Complaint Decision
If you disagree with the decision, you can file an appeal within 90 days. The Appellate Authority will review your declaration and evidence. A decision letter will be issued within 30 days of the review. Appeal decisions are final.
Audits
If your property is selected for an audit, you may need to provide further information and evidence. You will be notified by mail if documentation is required. If the property is determined vacant, a Supplementary Vacant Home Tax Notice of Assessment will be issued. You can dispute the audit decision by filing a Notice of Complaint within 90 days.
Examples of supporting documentation for audits include:
- Ontario vehicle registration and insurance.
- Government-issued ID (driver's license, Ontario Identity Card).
- Income tax notices of assessment.
- Lease agreements.
- Wills, grants of probate, or grants of administration.
- Employment contracts, pay statements, or records of employment.
- Homeowner's or tenant's insurance certificates.
Retain all records and documents related to occupancy or exemptions for three years.
Reporting a Suspected Vacant Property
To report a property you believe to be vacant, leave a voice message at 416-395-1098. Messages will not be returned. Do *not* use this hotline to declare your own property's status.
Terms of Use and Privacy
The city is not liable and will not be held responsible for any type of damages that might occur whether they be direct, indirect or special damages that could arise from your use or misuse of the application.
When using the application, you are agreeing that you will not submit personal information for anyone else, without their prior consent to submit the data to the city. You will also confirm that they have seen and understood the city of Toronto's Notice of Collection.
Conclusion
The Toronto Vacant Home Tax declaration is a mandatory annual requirement for all residential property owners in Toronto. Understanding the process, deadlines, and potential exemptions is crucial to avoid unnecessary tax liabilities. By submitting your declaration accurately and on time, you contribute to the City's efforts to increase housing availability and support affordable housing initiatives. Remember, failure to declare by the deadline of April 30, 2025, will result in your property being deemed vacant and subject to the tax. For further questions, consult the City of Toronto's official website or contact 311.
What steps will you take to ensure your property's occupancy status is accurately declared for the Vacant Home Tax?
If you want to know other articles similar to Toronto Vacant Home Tax Declaration: A Comprehensive Guidey ou can visit the category Tax Benefits by Province.
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