Toronto's New Vacant Home Tax: Everything You Need To Know

Toronto is implementing a new vacant home tax starting from January 2022, where property owners will have to pay 1% of their property's current value assessment if their home has been unoccupied for more than six months during the previous calendar year and is not the resident's principal residence. However, some exemptions apply, including death of the owner, if the homeowner is under medical care, or the home is undergoing renovation. Property owners will have to self-declare their residential property status each year to determine whether the vacant home tax is payable. The prime objective of the tax is to reduce the prevalence of residential properties left vacant, which might otherwise be used to increase housing availability and affordability. The tax could create more rental homes, and the desired outcome is not to have tax collected but to have vacant properties used as someone's home. The federal government has also announced its implementation of a nationwide tax on vacant properties owned by non-Canadian, non-residents.