What is the Vacant Home Tax?

The Toronto Vacant Home Tax is not something to ignore as a condo owner. The city requires an annual declaration from residential property owners every year, and if no declaration is filed by the deadline, the property can be deemed vacant automatically. For the 2026 taxation year, declarations are due by April 30, 2027.

This guide covers what Toronto’s vacant home tax rules actually require, when a unit is considered vacant, how the tax is calculated, and when a Toronto vacant home tax exemption may apply.

What is the Toronto Vacant Home Tax?

The City of Toronto created the Vacant Home Tax to discourage homes from being left empty and to push more housing back into use. The program was approved in 2021, took effect for the 2022 taxation year, and the first declarations were filed in 2023 for 2022 occupancy. A residential property is generally considered vacant if it was unoccupied for more than six months during the previous calendar year, unless it qualifies for an exemption.

Even if the unit is clearly lived in, rented, or qualifies for a Toronto vacant home tax exemption, the owner still has to file the declaration to let the city know. 

Who Has to File a Declaration

Every Toronto residential property owner has to submit a declaration each year.

That includes owners whose unit is:

• Owner-occupied
• Tenant-occupied
• Vacant
• Potentially exempt from the tax

The city’s current guidelines say that most owners will not owe the tax as long as the declaration is received by the deadline, but a missed filing can still result in the property being deemed vacant.

Key Dates Condo Owners Should Know

The city says the 2026 Vacant Home Tax declaration must be filed by April 30, 2027. If no declaration is received by then, a Vacant Home Tax Notice of Assessment can be issued.

How Much Is the Tax?

The current Toronto vacant home tax rate is 3% of the property’s Current Value Assessment (CVA) for the 2024 taxation year and onward. City Council increased the rate from the original 1% to 3%, which makes the dollar amount much more significant for higher-value condos.

When a Property Is Considered Vacant

The city says a property can be considered vacant if it was not used as the principal residence of the owner or a permitted occupant, or if it was unoccupied for a total of six months or more during the previous calendar year, unless an exemption applies. The city also notes that principal residences are not considered vacant, even if the owner is away for stretches of time, as long as the property remains the owner’s principal residence.

Common Exemptions

Some situations may qualify for a Toronto vacant home tax exemption, but the exemption is not automatic. It still has to be claimed through the annual declaration, and the city may later ask for supporting documentation.

Common exemptions include:

• Major renovations or repairs: Where the property cannot reasonably be occupied because substantial work is underway.
• Hospitalization or long-term care: Where the principal resident is in hospital or long-term care.
• Death of the registered owner: Where the property is part of an estate situation during the permitted period.
• Newly constructed homes not yet occupied: In qualifying situations involving new construction.

If you’re looking to take advantage of Toronto’s vacant home tax exemption, file the declaration anyway, claim the exemption directly, and keep records that support it.

If the declaration is not submitted by the deadline, the city can deem the property vacant and issue a tax bill automatically. 

For condo owners with multiple units, this gets even riskier. One missed filing can create a large tax bill on a unit that may have been tenanted or exempt all along.

What to Keep Track of as a Condo Owner

Make sure you have:

• Your customer number and assessment roll number
• Tenancy or occupancy records for the year being declared
• Documents supporting any Toronto vacant home tax exemption
• A record of when the declaration was submitted

The city’s declaration portal asks owners to have identifying property information ready before filing.

How to Stay Clear of an Unnecessary VHT Bill

If you want to avoid unnecessary tax exposure, your next step should be to file the declaration on time every year, review whether a Toronto vacant home tax exemption applies, and keep the records needed to support it if the city asks questions later.

This resource is for general educational purposes and should not be taken as legal or tax advice.