The City of Toronto is introducing a vacant home tax in 2023 as a measure to increase the supply of housing in the city. The City of Toronto vacant home tax is meant to discourage owners from leaving their residential properties unoccupied or face a hefty tax bill. The vacant home tax is paid in addition to existing property taxes.
The Toronto vacant home tax can be substantial. If you own a property in the City of Toronto and the property is vacant for more than six months, you could face a tax liability of 1% of the assessed value of the property. For example, if your property is assessed at $1M, your vacant home tax bill would be $10,000 for the year. Again, that is in addition to your property taxes.
Beginning February 2023, all residential property owners in Toronto will be required to declare the status of their property(s) annually using a portal that the city will be launching in December of 2022. Declarations must be made by the homeowner or someone acting on behalf of the owner and will determine whether the Vacant Home Tax applies and is payable.