Property Tax Reminder: Toronto Vacant Home Tax Portal Is Now Open

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The City of Toronto’s Vacant Home Tax portal officially opened on November 1, 2024, for the purposes of declaring the occupancy status of residential properties for the 2024 taxation year.

As was announced last year, the Vacant Home Tax has increased from 1% to 3% of a property’s assessed value for the 2024 taxation year. Owners must file a declaration confirming their property’s occupancy status in 2024, even if the property was occupied or subject to an exemption and no tax will be payable.

By way of reminder, a property is considered occupied if:

• It is the owner’s principal residence for at least six months of the year – even if the owner is away from the residence, leaving it vacant for extended periods of time due to travel or work.
• It is occupied by someone else – this includes any occupant who occupies the property as their principal residence for at least six months of the year; or tenants (residential or business) who occupy the property pursuant to a written agreement for a term of at least 30 days and there is occupancy by such tenant(s) for at least six months of the year.

In addition, a property may be excused from paying the Vacant Home Tax if it falls under one of the eligible exemptions, including if the property is undergoing repairs or renovations; the registered owner is in the hospital, a care facility or deceased; or the property is required for residential purposes because the owner or their spouse is employed full time in Toronto for at least six months during the year and their principal residence is located outside the Greater Toronto Area ("GTA").

Earlier this fall, the City of Toronto adopted several changes to the Vacant Home Tax, including the following:

• The deadline date for filing a declaration has been extended and now runs from November 1, 2024, to April 30, 2025.
• An exemption may be claimed if the property is required by the owner, spouse or dependent for medical reasons and their principal residence is located outside the GTA. A form, signed by a medical practitioner, is required to be filed together with the declaration.
• Property owners can now obtain a confirmation of declaration filing by email, mail or over the phone.
• The late declaration fee is waived for 2024. However, interest charges will continue to apply to overdue tax payments, and false declarations of occupancy status or failure to provide information when requested may result in a fine of up to $10,000, in addition to payment of the tax.

Click here for a full list of Vacant Home Tax changes adopted by Toronto City Council on October 9, 2024.

The Municipal & Land Use Planning Group at Aird & Berlis will continue to monitor developments in municipal taxation. Please contact a member of the group if you have questions or require assistance.