TORONTO COMPLIANCE

Toronto's Vacant Home Tax: the annual declaration every residential owner has to file

Every residential property owner in Toronto must declare occupancy status every year — even an occupied home — or the property is automatically deemed vacant and taxed at 3% of its assessed value.

Updated 8 August 2026
Share:LinkedInEmail
Rules, rates and fees change — this page reflects publicly published sources as of 8 August 2026 and isn't legal or tax advice. Confirm current requirements against the sources linked below, or with a licensed professional, before making a compliance decision.

The rate: 3% of assessed value

The Vacant Home Tax applies at 3% of a property's Current Value Assessment for any residential unit vacant more than six months in the taxation year. It started at 1% when the programme launched in 2022 and rose to 3% starting with the 2024 taxation year — a full tripling in two years, which is the kind of change worth checking for annually rather than assuming stays put.

Filing is mandatory even when the property is occupied

Every residential owner has to submit a declaration each year confirming occupancy status — the tax isn't self-reporting-optional the way it sounds. Miss the declaration and the property is automatically deemed vacant and taxed accordingly, regardless of whether anyone actually lived there. The tax becomes a lien on the property if unpaid.

As of 8 August 2026, the declaration window for the 2025 taxation year (deadline 30 April 2026) has closed; the City has not yet announced the 2026 taxation year's declaration dates. Multi-residential, commercial, industrial, vacant land without structures, and parking-space assessments are excluded from the requirement entirely.

Exemptions exist, but none are automatic

A property that's genuinely vacant can still avoid the tax under a defined list of exemptions — each one has to be claimed on the declaration with supporting documentation, and most carry a duration limit (typically two to three years) rather than applying indefinitely.

  • Death of a registered owner
  • Principal resident in hospital or a care facility for 6+ months
  • Major repairs or renovations under permit
  • Legal ownership transferred during the taxation year
  • Owner or spouse's full-time employment requires them elsewhere
  • Court order prohibiting occupancy
  • New construction — developer inventory
  • A secondary residence needed for medical reasons

Why this belongs on a portfolio operator's calendar, not just an owner's

A condo manager or vacation-property operator with off-season inventory, a unit between tenants, or a listing paused for renovation is exactly the profile this tax is built to catch. Miss one declaration across a portfolio of units and it isn't a rounding error — it's 3% of that unit's assessed value, for a property that may well have been rented most of the year.