Toronto’s Vacant Home Tax (VHT): The Annual Declaration Every Homeowner Must File
Occupied or not, every Toronto residential property owner declares each year — miss it, and the City assumes your home is vacant.
What is Toronto’s Vacant Home Tax, and do I have to declare?
The Vacant Home Tax (VHT) is a City of Toronto levy that requires every residential property owner to file an annual declaration of their home’s occupancy status. According to the City of Toronto, a home left vacant for six months or more in a tax year is taxed at 3% of its Current Value Assessment (CVA) — and even owners of an occupied principal residence must declare, or the home is automatically deemed vacant.
Source: City of Toronto (2025)
Every year, GTA clients ask me the same thing: “My home clearly has people living in it — why did I get a Vacant Home Tax bill?” The answer is almost always the same: they forgot to declare. Here’s exactly how Toronto’s VHT works — the deadline, the rate, the exemptions, and the penalties — so you never pay a bill you didn’t need to.
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What the tax is — and why everyone has to declare
The Vacant Home Tax is not simply “a tax on empty houses” — it is an annual declaration obligation for every residential owner. According to the City of Toronto, owners of residential property must declare the occupancy status of their home every year, covering January 1 to December 31 of the prior year — even if it is the home you live in every single day. The policy exists to push chronically vacant homes back onto the rental and resale market. The key distinction: the tax applies only to vacant homes, but the declaration applies to everyone.
Who must declare — and who is exempt from declaring
Properties that do not need to declare: those assessed as multi-residential, commercial, industrial, vacant land, or parking spaces.
In practice, if you own an ordinary detached house, townhouse, or condo unit, you cannot skip this once-a-year step — occupancy status doesn’t change that.
Where and by when to declare
🚨The most common — and most avoidable — bill comes from simply forgetting to file. No declaration = deemed vacant. Even if you live there full-time, make sure your declaration is in by April 30.
When a home counts as "vacant"
According to the City of Toronto, a residential property that was occupied for fewer than six months during the tax year (i.e., vacant for six months or more) is considered vacant. “Occupied” means lived in by the owner, a family member, or a tenant under a genuine lease. Occasional visits, storing belongings, or simply “keeping it for later” do not count as continuous occupancy. Critically, a home with no declaration filed on time is automatically deemed vacant — the single most common reason owners get billed.
💡 According to the City of Toronto, beginning with the 2024 taxation year the VHT rate increased to 3% of a property’s Current Value Assessment (CVA), and it remains 3% for the 2025 year. CVA is set by the Municipal Property Assessment Corporation (MPAC) and is often below market value — but it is still a substantial base. On a home with a $1,000,000 CVA, a 3% vacant home tax is $30,000 for a single year. That is why this is never a small oversight.
Vacant but exempt: the common exemptions
• Death of the registered owner (up to 3 years)
• Owner in a hospital or long-term care facility (up to 2 years)
• Repairs or renovations under an active permit
• Transfer of legal ownership during the year
• Occupancy required for full-time employment
• A court order prohibiting occupancy
• A developer’s new, unsold inventory (up to 2 years)
• A secondary residence used for medical reasons
The catch: exemptions are not automatic — you must actively select the applicable exemption when you declare and keep supporting documentation.
⚠️Exemptions don’t apply automatically. If your home is vacant but qualifies (renovations, owner’s death, care facility, etc.), you must select the exemption when you declare and keep proof — otherwise you’ll still be taxed.
The cost of missing or faking a declaration
It’s not the same as Ontario’s NRST
Clients routinely confuse the two. According to the Government of Ontario, the Non-Resident Speculation Tax (NRST) is a one-time 25% tax on the purchase price of Ontario residential property bought by foreign buyers, paid at closing alongside Land Transfer Tax. The Vacant Home Tax, by contrast, is an annual, ongoing municipal tax on empty homes that has nothing to do with the buyer’s nationality — only with whether anyone lives there. One is a one-time charge at purchase; the other is filed every year of ownership. Both can apply to the same property.
Not just Toronto: other cities have their own
Toronto isn’t alone. According to the City of Ottawa, Ottawa runs a Vacant Unit Tax on homes left empty for more than 184 days in a year, with its annual declaration typically due on the third Thursday of March (a late-declaration fee applies after that). Hamilton and other municipalities have introduced comparable taxes as well. Notably, Peel Region — which includes Mississauga — paused its planned vacant home tax amid the region’s restructuring (peelregion.ca). If you own property across several GTA municipalities, check each city’s rules separately.
Frequently Asked Questions
My home is my occupied principal residence — do I still have to declare?
Yes. According to the City of Toronto, every residential owner must declare occupancy status each year, principal residences included. Living there means you owe no tax — but skipping the declaration means the home is automatically deemed vacant and billed.
What is the current Toronto Vacant Home Tax rate?
According to the City of Toronto, the rate has been 3% of a property’s Current Value Assessment (CVA) since the 2024 taxation year and remains 3% for 2025. Your CVA is set by MPAC and appears on your property tax bill or MPAC notice.
When is the annual declaration deadline?
According to the City of Toronto, the annual deadline is April 30. For the 2025 occupancy year, declarations are due by April 30, 2026, through the City’s online Vacant Home Tax portal.
If my home is deemed vacant, can I dispute it?
Yes. After receiving a Notice of Assessment you can file a Notice of Complaint within the set window, providing proof of occupancy such as utility bills or a lease. But the appeal process is slow — declaring accurately and on time is always the easier route.
How is the Vacant Home Tax different from the Non-Resident Speculation Tax?
According to the Government of Ontario, the NRST is a one-time 25% tax paid by foreign buyers at closing, alongside Land Transfer Tax. The Vacant Home Tax is an annual municipal tax on empty homes, regardless of who owns them. One is about who buys; the other is about whether anyone lives there.
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · CLHMS & GUILD Elite · REAIS
VP & Branch Manager, Bay Street Group Inc.
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