Knock, knock - anyone home? Toronto's New Vacant Home Tax

This week, City Council will be voting on final recommendations for a new Vacant Home Tax (VHT), to come into effect on January 1, 2022. Using best practices from cities around the world, the purpose of the VHT is to bring unoccupied homes back onto the market and bolster Toronto's housing supply. There are an estimated 27,000 vacant homes in Toronto that sit off the market for years at a time, and that number doesn't even include condo units. Unlocking this existing supply is a simple way to increase housing availability in our city.

The recommended design sets the VHT at a rate of 1% of a given property's Current Value Assessment and will only apply to units which have been unoccupied for more than six months during the previous calendar year. The VHT does not apply to principal residences and includes several reasonable exemptions, including for snowbirds, college or university staff who take a sabbatical leave, and those who must temporarily care for an ill family member outside of Toronto.

Although the VHT would be in place next year, it would not be payable until 2023, based on unit occupancy throughout 2022. Property owners will be required to self-declare the status of their homes to determine whether the VHT is payable for each property.

For more information, visit the City of Toronto's Vacant Home Tax webpage.