Toronto – In 2021, Council approved the Vacant Home Tax (VHT) as a policy tool to help increase housing supply by encouraging residential property owners to rent or sell unoccupied properties. The Vacant Home Tax Program supports the increase of housing supply in Toronto, both by encouraging homes to be occupied and by investing funds collected from the VHT in housing initiatives.
The Vacant Home Tax applies to homes that remain unoccupied for more than six months within a calendar year unless they meet specific exemption criteria. The VHT does not apply to homes that are the principal/main residence of the owner (where they reside and conduct their daily affairs, receive mail, pay bills, etc.), and these properties can remain unoccupied and will not be considered vacant.
Property owners are required to declare the occupancy status of their property annually, even if they reside at the property. For more information on the declaration process and information on the Vacant Home Tax program visit the Vacant Home Tax webpage.
2024 program updates
- The Vacant Home Tax Program has a longer declaration period, from November 1 to April 30, 2025.
- The occupancy status of homes can be declared by property owners through a revamped, user-friendly portal that will be launched November 1, 2024.
- Property owners can provide their email to receive a confirmation of their declaration by email. If no email address is provided during the online declaration, they can print or save the confirmation page, which now includes a confirmation number. Those declaring by phone will also receive a confirmation number. Property owners who declare by phone or those without access to a printer can call 311 to request a printed confirmation, which will be mailed to them.
- Starting in November with the opening of the 2024 declaration period, the City will introduce a dedicated Customer Care Centre, enabling homeowners to declare by phone through 311, with support available in 180 languages. Homeowners will also have the option to submit their declarations in person at Tax and Utility counters located at Toronto City Hall and the civic centres.
- The late declaration fee remains waived though it may be reinstated in future years as the City does further evaluation of the success of the VHT program redesign.
- The process for issuing Vacant Home Tax bills has been updated to a more data-driven approach, allowing the City’s CFO to delay sending bills if the overall declaration rate falls short of expectations.
Important program information
- The Vacant Home Tax Program is designed to support Toronto’s housing crisis by encouraging owners to make vacant properties available for rent or for sale.
- Residential properties in Toronto are subject to the Vacant Home Tax if they are vacant for more than six months in the calendar year, unless exempt or the principal/main residence of the owner or someone they permit to reside there.
- All property owners must submit an annual declaration of their property’s occupancy status, even if they live there.
- Declarations can be made online when the portal opens November 1, 2024 on the City’s Vacant Home Tax webpage.
- Homes may be exempt if they are vacant under certain conditions, which are outlined on the City’s Vacant Home Tax webpage.
- The City explored using utility data for the VHT program but identified challenges, as approximately 45 per cent of residential properties do not have individual meters. City staff recommend that utility data not be used as the primary source but suggest it could be utilized in audits.
Important Dates
- November 1, 2024: Declaration period opens for 2024 occupancy status.
- April 30, 2025: Deadline to submit declaration of occupancy status.
- June 1, 2025: Planned mailout of VHT bills based on 2024 occupancy status.
- September 15, October 15, November 17, 2025: VHT bills for 2024 are due.
- December 2025: Deadline to submit a Notice of Complaint for 2024 Vacant Home Tax Program and property occupancy status.
Executive Committee and Council Dates:
- The staff report, Redesigning the Vacant Home Tax Program and Supporting Housing Supply, is available on the City’s Council & Committee Meetings webpage.
- The report will be presented at Executive Committee meeting on October 1.
- The report will be presented to Toronto City Council at its October 9 to 11 meeting.