What is it?
As of January 1, 2023, all properties deemed vacant for more than 6 months during the previous year will be charged a one per cent tax on the current value assessment (CVA) of the home. More information is on the City of Toronto’s website here.
Key Points
- All Toronto homeowners will need to declare the status of their property by February 2nd, 2023 even if it’s not vacant. (This can be done by mail or online)
- If vacant in 2022, the tax is to be paid in 2023.
- Each year, a vacant home tax notice will arrive in the mail in March/April with payment due on May 1st.
- Exemptions include the death of the owner, repairs/renovations, resident in care, transfer of legal ownership, occupancy of full-time employment outside GTA, or court order.
- Penalties range from $250 to $10,000.
- Audits by the City may be conducted.
- Notice of Complaint process available to owners.
Important Information To Know:
- The declaration can be made online or by mail.
- To make a declaration, homeowners will need to provide the 21-digit assessment roll number and customer number from their property tax bill or property tax account statement.
- Documents required for exemption are outlined on the website.
- If the City conducts an audit, owners may be required to submit information or
- documentation about tenants and/or permitted occupants to confirm occupancy during the taxation period.
- The Vacant Home Tax will form a lien on the property, and any unpaid taxes will become the purchaser’s responsibility.
- If a closing occurs between January 1 and the closing of the declaration period on February 2, the vendor must complete the declaration prior to the closing, as only the vendor will know the property’s occupancy status for the prior year.
- If a closing occurs after the declaration period – February 3 to December 31 – the purchaser must submit a declaration in the following year.
- The purchaser qualifies for the “transfer of legal ownership” exemption.
- Vendors should provide a copy of the statutory declaration at closing and the completed and filed property status declaration to the purchaser.
