Toronto's Vacant Home Tax: Who Has to File

Who actually has to file

Every owner of residential property in Toronto must file an occupancy status declaration each year, including owners whose home is obviously and continuously occupied as their principal residence — the filing requirement itself isn't limited to owners who suspect they might owe the tax. This is a genuinely easy step to miss, since it's simple to assume the declaration only applies to investors or absentee owners.

What the tax actually costs if a home is vacant

A property declared or deemed vacant for more than six months of the year is taxed at a percentage of the home's Current Value Assessment (the same assessed value used for annual property tax) — a meaningful cost given it applies to the full assessed value, not just a flat fee. The tax is specifically designed to encourage owners to occupy or rent out empty homes rather than leave them vacant in a tight housing market.

The filing deadline, and what happens if you miss it

The declaration deadline falls early in the following year, and missing it can result in your property being deemed vacant by default regardless of its actual occupancy status, along with a separate late-filing penalty — meaning the administrative miss itself has real consequences even for a home that was genuinely occupied all year.

Common exemptions

Legitimate exemptions exist for circumstances like the owner being in a hospital or care facility, the property undergoing renovations under permit, or a recent ownership transfer — but these need to be properly declared and documented, not assumed automatically. Check the current City of Toronto exemption criteria directly if any of these apply to your situation.

See how this compares to Vancouver's Empty Homes Tax and BC's Speculation and Vacancy Tax on the vacant home tax calculator.

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