Toronto Vacant Home Tax Deadline Extended

An In-Depth Guide for Property Owners

Toronto, one of the largest cities in Canada, is known for its diverse and thriving communities. In an effort to encourage property owners to put their empty residential properties back into use, the City of Toronto has implemented the Vacant Home Tax. This tax applies to all homes in Toronto that are unoccupied for more than six months in a year and is calculated as 1% of the property’s assessed value. To avoid paying the Vacant Home Tax, property owners must declare their property's occupancy status each year by completing a declaration form and submitting it to the City of Toronto.

What is the Vacant Home Tax in Toronto?
The Vacant Home Tax is a tax applied to all homes in Toronto that are unoccupied for more than six months in a year. It is calculated as 1% of the property’s assessed value and is due annually. The tax was introduced in 2017 and has since helped bring many empty homes back into use, encouraging property owners to rent out or sell their properties. The Vacant Home Tax applies to all residential properties in Toronto, including single-family homes, townhouses, apartments, and condominiums.

Why was the Vacant Home Tax introduced in Toronto?
The Vacant Home Tax was introduced in Toronto as a way to address the problem of empty homes in the city. Empty homes can contribute to declining neighborhoods and decreased community vitality, and they also reduce the number of available rental units in a city where the rental market is already tight. The Vacant Home Tax aims to encourage property owners to put their empty homes back into use, either by renting them out or selling them. By doing so, the tax helps to create vibrant and thriving communities and ensures that empty homes are not left to deteriorate.

How to avoid paying the Vacant Home Tax in Toronto?
To avoid paying the Vacant Home Tax, property owners must declare their property's occupancy status each year by completing a declaration form and submitting it to the City of Toronto. The declaration form is available on the City of Toronto's website, and property owners must submit it by December 31st of each year. If the property is occupied for more than six months in a year, it is not subject to the Vacant Home Tax. Property owners who falsely declare their property as occupied will face significant fines and penalties, as well as having to pay the tax retroactively for the previous year

What do you need to know about the extended deadline for the Vacant Home Tax declaration?
The deadline for homeowners in Toronto to declare if their residential property is occupied or vacant has been extended until the end of February, the city’s mayor says.
John Tory made the announcement during an unrelated press conference on Thursday.The deadline was initially set for Feb. 2, but has now been extended until the end of the month.

“There’ll be no fines issued during that time for not filling out the form,” Tory said. “I hope what this will encourage people to fill out the form so that they won’t have to pay this tax and declare happily for us that their unit is occupied.”
According to the city, an annual tax will be levied on vacant Toronto residences, payable beginning in 2023.

What happens if you don’t complete the Vacant Home Tax declaration in Toronto?
If a property owner fails to complete the Vacant Home Tax declaration by the deadline, they will be subject to late fees and penalties. The City of Toronto will also conduct an investigation to determine the property’s occupancy status, and if it is found to be vacant, the property owner will be required to pay the Vacant Home Tax retroactively for the previous years. In addition, the property owner may face additional penalties, including fines and court action. To avoid these penalties, it is important for property owners to complete the Vacant Home Tax declaration by the deadline each year.


Conclusion
The Vacant Home Tax in Toronto is an important tool in addressing the issue of empty homes in the city. By encouraging property owners to put their empty homes back into use, the tax helps to create vibrant and thriving communities and ensures that empty homes are not left to deteriorate. Property owners must declare their property's occupancy status each year by completing a declaration form and submitting it to the City of Toronto by the deadline. the deadline for the 2023 Vacant Home Tax declaration has been extended to February 28, 2023, providing property owners with additional time to complete the declaration form. Property owners who fail to complete the declaration by the deadline will face late fees, penalties, and potential court action.