When Do You Have to Declare Vacant Home Tax and Vacant Unit Tax? Key Dates and Deadlines You Need to Know

As part of efforts to address housing shortages and increase the availability of housing in cities like Toronto, the Vacant Home Tax (VHT) and Vacant Unit Tax (VUT) have been implemented. Both taxes require property owners to report their vacant properties annually, but the deadlines for reporting and paying can vary. Missing these deadlines could lead to significant fines or penalties. In this blog, we’ll explain when you need to declare these taxes, the key dates involved, and how Ana Bastas Realty can help you stay on track.

What is the Vacant Home Tax (VHT)?

The Vacant Home Tax is a levy that applies to residential properties left unoccupied for more than six months in a calendar year. Introduced by the city of Toronto, the tax is aimed at increasing the availability of housing by discouraging homeowners from leaving their homes vacant.

• Who Needs to Declare: Homeowners who own residential properties in Toronto (or any other municipality with a Vacant Home Tax in place) and leave their properties vacant for more than six months in a year must declare whether the property is vacant or occupied.
• Exemptions: Primary residences are exempt from the Vacant Home Tax. Other exemptions can apply for properties under renovation or homes that are temporarily uninhabitable due to special circumstances like long-term care.

What is the Vacant Unit Tax (VUT)?

The Vacant Unit Tax applies to individual rental units in multi-unit buildings, like apartment complexes and condominiums. If a rental unit is left vacant for more than six months in a year, landlords must report it to the municipality. The goal is to ensure that rental units are actively used for housing rather than left vacant for speculative purposes.

• Who Needs to Declare: Landlords who own vacant rental units in municipalities where the Vacant Unit Tax applies need to report these properties, particularly if the unit has been vacant for over six months.
• Exemptions: Units that are under renovation, legally uninhabitable, or vacant due to special circumstances may be exempt from the tax, but you’ll need to provide documentation to prove this.

When Do You Have to Declare the Vacant Home Tax (VHT)?

In Toronto, the declaration process for the Vacant Home Tax follows an annual cycle. Property owners must declare the status of their property for the previous calendar year.

• Declaration Deadline: The deadline to submit your declaration for the Vacant Home Tax is typically February 2nd of the following year. For example, to declare for the 2023 calendar year, your declaration must be submitted by February 2, 2024.
• Consequences of Missing the Deadline: Failure to submit the declaration by the deadline may result in a fine, and your property will be presumed to be vacant. This could lead to being taxed based on the assumption that your property has been vacant for more than six months, which means additional costs.

When Do You Have to Declare the Vacant Unit Tax (VUT)?

The Vacant Unit Tax declaration follows a similar timeline to the VHT but specifically applies to rental properties. Landlords must declare whether their rental units are vacant or occupied for the previous calendar year.

• Declaration Deadline: For rental units, the declaration deadline is also February 2nd of the following year. For example, to declare the status of rental units for 2023, the deadline would be February 2, 2024.
• Consequences of Missing the Deadline: Just like with the Vacant Home Tax, if landlords miss the declaration deadline for the VUT, the unit will be assumed vacant, and the tax will apply accordingly.

Key Dates and Deadlines for Both Taxes

How Ana Bastas Realty Can Help You Meet Deadlines

Keeping track of tax deadlines can be overwhelming, but Ana Bastas Realty is here to ensure that you stay on top of your responsibilities and avoid costly penalties. Here’s how we can help:

1. Timely Declaration Assistance: We’ll help you ensure that your properties are accurately declared, so you avoid fines for missing the February 2nd deadline. We can assist with all aspects of the reporting process, ensuring that your forms are submitted on time.

2. Expert Advice on Exemptions: If you believe your property or rental unit may be eligible for an exemption (for example, if it’s undergoing renovations or temporarily uninhabitable), we can help you gather the necessary documentation and submit it for approval.

3. Property Management Services: If you're worried about your rental unit being vacant, we offer professional property management services to help you keep your units occupied year-round, thereby avoiding the Vacant Unit Tax. We can also help you market your property and find tenants quickly.

4. Ongoing Compliance Support: We’ll keep you informed of any updates or changes in the tax regulations and help ensure that your properties remain compliant with all municipal rules, year after year.

5. Strategic Advice for Property Owners: Whether you own a single property or multiple, we’ll help you develop strategies to keep your properties occupied and avoid unnecessary taxes, ensuring your real estate investments stay profitable.

Final Thoughts

Staying compliant with the Vacant Home Tax and Vacant Unit Tax is essential for property owners in Toronto and other municipalities that have implemented these measures. With Ana Bastas Realty, you don’t have to worry about missing important deadlines or navigating the complexities of these taxes. We’re here to ensure that your property remains occupied and your investments are well-managed, saving you time, money, and stress.

Mark your calendar: February 2, 2024 is the key deadline for declaring your properties for both taxes. If you need assistance with declarations, exemptions, or property management, contact Ana Bastas Realty today. We’re here to help you stay on track and keep your real estate portfolio thriving.