Understanding Toronto’s Vacant Home Tax (VHT) for 2025: What Homeowners Need to Know and Do

Toronto’s Vacant Home Tax (VHT) aims to increase housing availability by encouraging property owners to occupy or rent their vacant homes. As we enter 2025, it’s essential for homeowners to understand the VHT requirements, key deadlines, exemptions, and how to complete the declaration process to avoid penalties.

What Is the Vacant Home Tax?

The VHT applies to Toronto residential properties that are left unoccupied for more than six months within the previous calendar year. Introduced as part of the City’s housing initiatives, this tax incentivizes property usage, helping free up homes for people who need them. Starting with the 2024 tax year, the VHT rate was increased from 1% to 3% of the property’s current value assessment (CVA), meaning it can significantly impact those who leave homes vacant without exemption.

Who Needs to Submit a VHT Declaration?

All Toronto residential property owners must file a VHT declaration, even if their property is not vacant. This includes owners whose homes are principal residences, rented out, or otherwise occupied. The declaration helps the City assess which properties are genuinely vacant and subject to the tax.

Key Deadline for the 2025 Declaration

• Deadline: April 30, 2025
• This deadline is for declaring the occupancy status of your property for the year 2024. Missing this deadline may lead to automatic classification of the property as vacant, resulting in a 3% tax on the property’s CVA.

How to File Your VHT Declaration

Toronto offers multiple options to make the VHT declaration process accessible:

1. Online Portal: Visit the City’s updated portal to quickly and easily declare your property status.
2. By Phone: Call 311 (within Toronto) or 416-392-2489 to declare by phone.
3. In-Person: You can also visit a Tax and Utility counter at Toronto City Hall or any civic center.

Exemptions from the VHT

Not every property left unoccupied is subject to the tax. Some common exemptions include:

• Principal Residence: If the property is your primary home or the main residence of someone permitted to live there.
• Specific Life Events: Properties left vacant due to the death of the owner, renovations, or medical-related reasons may qualify for exemptions.
• Court-Ordered Vacancies: If a court order prohibits occupancy, this may also provide grounds for exemption.

What Happens if You Don’t Declare?

If a property owner fails to submit a declaration by the deadline, the City will classify the property as vacant by default, and the owner will be subject to the 3% VHT on the property’s CVA. Additionally, late declarations or false information may lead to penalties, so it’s crucial to complete the process accurately and on time.

How the VHT Revenue Is Used

Funds raised through the VHT contribute to Toronto’s housing programs, such as affordable housing initiatives and projects managed by Toronto Community Housing Corporation (TCHC) and the Multi-Unit Residential Acquisition (MURA) program. This tax supports efforts to keep housing accessible and affordable across the city.

Conclusion

Toronto’s Vacant Home Tax is a crucial part of the city’s plan to improve housing availability, so it’s essential for homeowners to understand their responsibilities under this policy. Completing your declaration by April 30, 2025, ensures you stay in compliance and avoid costly penalties. For more details, visit the

ps://www.toronto.ca/news/2024-vacant-home-tax-declaration-period-opens-as-part-of-improved-program-to-increase-housing-supply/), or reach out directly if you have questions about your specific situation.

Staying informed on the VHT requirements not only helps homeowners avoid tax liabilities but also supports the city in addressing its housing needs.