Don’t start the New Year on a tax note
If you are a landlord or own an investment property in Toronto, you need to declare the vacancy status of your property immediately. If not, you would soon be sent a hefty Vacant Home Tax bill.
The City of Toronto has implemented a Vacant Home Tax on all vacant residential properties and has sent letters and notices to all landlords.
All Toronto residential property owners must submit a declaration of their property’s 2022 occupancy status by February 2, 2023.
Owners who fail to make a declaration by the due date will be subject to pay the Vacant Home Tax, at a rate of 1% of the property’s 2022 Current Val Assessment (CVA). For example, the tax on a $1 million home will be $10,000. There is a $250 fine for late submissions.
A property is considered vacant if it is not used as the principal residence by the owner(s) or any permitted tenant / occupant(s), or if it was unoccupied for a total of six months or more during the previous calendar year.
The goal of the City of Toronto’s Vacant Home Tax (VHT) is to increase the supply of housing by discouraging owners from leaving their residential properties unoccupied. Homeowners who choose to keep their properties vacant will be subject to this tax.
How to make a Vacant Home Tax property status declaration (in less than 5 minutes)
- Visit Toronto.ca/Vacant Home Tax
- Select Submit Declaration Online (You may opt to download and submit a completed paper declaration form instead)
- Enter your 21-digit assessment roll number and customer number from your tax bill or property tax account statement.
- Input your contact details.
- Answer the questions related to your property and provide the tenant’s information.
- Review your declaration.
- Select “Declare” to submit.
False declaration may also lead to a penalty of up to $10,000. This will certainly not be the smartest way to start the new year.