Starting 2023 a new annual tax will be levied on vacant Toronto residences.
How the tax works
The tax is calculated based on 1% of the property’s assessed value and is based on the number of months the property was vacant in the previous calendar year.
Who is responsible for paying the tax
The person who is on title is responsible for paying this tax.
What is considered vacant
A property is considered vacant if it is not used as the principal residence by the owner(s) or any permitted occupant(s), meaning tenants, or if it was unoccupied for a total of six months or more during the previous calendar year.
Exceptions to the rule
- if your property is vacant for 180 days or less, you do not have to pay the tax
- vacant property is put on the market, or is in the process of being sold
- no one lives in the property because it is under construction
How does it work
All residential property owners in Toronto will be required to declare the status of their property(s) annually, even if they live there. Declarations must be made by the homeowner or someone acting on behalf of the owner. The declaration will determine whether the Vacant Home Tax applies and is pay.
Why is it being done
The goal of the Vacant Home Tax is to keep residential properties from being left unoccupied, which should have the positive effect of increasing the supply of housing and providing more options for people looking to buy or rent. Revenues collected from this tax will go toward affordable housing initiatives.
for more details visit https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/