Vacant Home Tax in Toronto: 2025 Updates and Key Details

The Vacant Home Tax (VHT) in Toronto is a policy initiative designed to address the city’s housing crisis by increasing the availability of residential properties. Introduced in 2021, this tax encourages property owners to rent or sell unoccupied homes, while generating funds to support affordable housing initiatives. Below, we’ll explore everything you need to know about the Vacant Home Tax Toronto program, its updates for 2024, and its impact on housing supply.

What is the Vacant Home Tax?

The Vacant Home Tax applies to residential properties in Toronto that remain unoccupied for more than six months within a calendar year, unless they meet specific exemption criteria. Key features include:

• Principal/Main Residences Excluded: Homes that are the owner’s principal residence—where daily affairs are conducted—are not considered vacant, even if they remain unoccupied.
• Annual Declarations Required: All residential property owners, regardless of occupancy status, must submit an annual declaration of their property’s occupancy status.

Revenue from the tax funds affordable housing programs under Toronto’s HousingTO Plan, aiming to increase the supply of permanent, affordable homes.

Key Facts About the Vacant Home Tax Program

1. Properties Covered:
   • Approximately 820,000 residential properties in Toronto are subject to the annual occupancy declaration.
2. Revenue Generated:
   • In 2022: $56.5 million
   • In 2023: $50.6 million (budgeted at $55 million annually)
   • For 2024, the VHT rate increases from 1% to 3%, with estimated revenue of $105 million.
3. Use of Funds:
   • Supports programs like the Toronto Community Housing Corporation (TCHC) and the Multi-Unit Residential Acquisition (MURA) program.
   • MURA provides capital funding to non-profit housing providers to preserve at-risk rental housing as permanently affordable.
4. Current Vacancy Rate:
   • Estimated between 1% and 1.2% of residential properties.

TD Bank Accelerates CEO Transition, Canada Faces Trump’s Tariff Threats, and CPP Growth Slows in 2025

Disability Tax Credit 2025: Amount & Medical Conditions Qualify for it

CPP Contribution 2025: Key Rates, Maximums, and Exemptions You Need to Know

Updates to the Vacant Home Tax Program for 2025

Several enhancements have been introduced to improve the efficiency and accessibility of the Vacant Home Tax Toronto program:

Longer Declaration Period

• The declaration period for the 2024 tax year runs from November 1, 2024, to April 30, 2025.

Revamped Declaration Portal

• A new user-friendly portal will launch on November 1, 2024, allowing property owners to declare occupancy status easily online.
• Options for receiving confirmation:
  • Via email (if provided during the declaration process).
  • Printable confirmation pages with reference numbers.
  • Phone declarations through 311, with mailed confirmations if needed.

Customer Care Enhancements

• A dedicated Customer Care Centre will assist property owners via 311 in 180 languages, starting November 2024.
• In-person submissions will be accepted at Tax and Utility counters at Toronto City Hall and civic centres.

Late Declaration Fee Waiver

• While late declaration fees remain waived for now, the City may reinstate them in future years based on program evaluations.

Data-Driven Billing Process

• The updated process allows the City’s CFO to delay issuing tax bills if declaration rates fall below expectations, ensuring accurate billing.

Important Dates for the Vacant Home Tax Toronto Program

• November 1, 2024: Declaration period for 2024 occupancy status opens.
• April 30, 2025: Deadline for submitting occupancy declarations.
• June 1, 2025: Planned mailout of 2024 VHT bills.
• September 15, October 15, November 17, 2025: Deadlines for VHT payments.
• December 2025: Deadline to file a Notice of Complaint for disputes related to the 2024 program.

Exemptions and Compliance

Exemptions: Certain properties may qualify for exemptions if they meet specific criteria. Visit the City’s Vacant Home Tax webpage for detailed exemption information.

Utility Data Usage: While utility data was considered for verifying property occupancy, challenges—such as the absence of individual meters in 45% of properties—mean it will only be used during audits.

How the Vacant Home Tax Supports Housing Supply

The Vacant Home Tax Toronto program is part of a broader strategy to combat the city’s housing challenges. By discouraging prolonged property vacancies, the tax:

• Encourages owners to rent or sell unused properties.
• Generates substantial funds for affordable housing initiatives, such as:
  • Repairing and maintaining TCHC units.
  • Funding MURA to safeguard at-risk rental housing.

With the 2024 rate increase to 3%, the program aims to further incentivize the occupancy of vacant homes, making more housing available to Toronto residents.

How to Declare Occupancy Status

Property owners can declare occupancy status using one of the following methods:

1. Online:
   • Use the revamped portal available from November 1, 2024.
2. By Phone:
   • Call 311 to declare and receive support in 180 languages.
3. In-Person:
   • Submit declarations at Toronto City Hall or civic centres.

The Vacant Home Tax Toronto program is a critical tool in addressing the city’s housing crisis by making better use of existing residential properties. The 2024 updates enhance accessibility and improve the program’s effectiveness, aiming to increase occupancy rates and support affordable housing initiatives. For more details, visit the City of Toronto’s Vacant Home Tax webpage or contact 311 for assistance.