Toronto’s Vacant Home Tax: 5 Things Buyers Must Know (2026)
Rate now 3%, no declaration means deemed vacant, and unpaid tax follows the property to the buyer
What is Toronto’s Vacant Home Tax now, and why should a buyer care?
The current rate is 3% of the Current Value Assessment (CVA), beginning with the 2024 taxation year (it was 1% before). According to the City of Toronto (2026), a property is considered vacant if unoccupied for six months or more in a taxation year. Buyers should care because unpaid VHT becomes a lien that transfers with the property to the buyer.
Source: City of Toronto — Vacant Home Tax (2026).
When buying a resale home, most people focus on price, mortgage, and inspection — and overlook a tax that can land on them: Toronto’s Vacant Home Tax (VHT). If the seller didn’t declare, or declared vacant and owes tax, that debt becomes a lien that transfers to you. Here is the buyer’s-eye view of how to defuse it before closing.
→
→
→
→
The rate: up from 1% to 3% of CVA
What counts as “vacant”: six months or more
Annual declaration is mandatory — no declaration means deemed vacant
🚨The biggest trap: the seller forgets to declare → the property is deemed vacant → a 3%-of-CVA tax is assessed → it becomes a lien → and you, the buyer, inherit it after closing. Always have your lawyer check before you close.
The core buyer risk: unpaid tax follows the property
Shared responsibility: get a copy of the filed declaration
💡 Buyer due diligence in three steps: (1) have your lawyer verify the seller filed for the current and prior years; (2) confirm any VHT liability on the statement of adjustments at closing; (3) require a copy of the filed declaration as a condition of closing.
Frequently Asked Questions
What is Toronto’s Vacant Home Tax rate now?
According to the City of Toronto (2026), it is 3% of the Current Value Assessment (CVA), beginning with the 2024 taxation year, up from 1%.
When is a home considered vacant?
According to the City of Toronto (2026), a property is considered vacant if it is unoccupied for six months or more during the taxation year.
Can a seller’s failure to declare affect the buyer?
Yes. According to the City of Toronto (2026), unpaid VHT forms a lien that transfers with the property, and the purchaser is responsible. Have your lawyer check the declaration and any liability before closing.
How can a buyer protect themselves?
Have your lawyer verify the seller’s annual declarations, confirm no VHT liability on the statement of adjustments, and require a copy of the filed declaration as a condition of closing.
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · GUILD Elite
VP & Branch Manager, Bay Street Group Inc.
Get expert answers on buying, selling, and renting in the GTA
Discover more from GTA Real Estate Broker | Arthur Zhao
Subscribe to get the latest posts sent to your email.
