Updated October 3, 2026 · DF Property Management
What the tax is
The Vacant Home Tax (VHT) is an annual City of Toronto levy on residential properties that sat empty for six months or more in a calendar year. It was introduced for the 2022 taxation year. Revenue goes toward affordable housing — the City points to its Multi-Unit Residential Acquisition program and capital repairs to Toronto Community Housing units.
The tax is separate from your regular property tax bill. It arrives as its own notice, a year after the occupancy period it relates to.
The rate: 3% of assessed value
Beginning with the 2024 taxation year, the rate rose from 1% to 3% of the property's Current Value Assessment (CVA). The 2025 taxation year, billed in 2026, is also at 3%.
That is real money. A condo assessed at $600,000 that was vacant for most of the year would owe $18,000 — or would be billed that amount simply because the owner forgot to declare.
Who has to declare
Almost every residential owner must declare their property's occupancy status every year — including owners who live in the home and landlords whose units were rented all year. A declaration of "occupied" costs nothing. No declaration means the City may deem the property vacant and send a bill.
Declarations are not required for:
- Properties assessed fully as multi-residential, commercial or industrial — so a purpose-built apartment building assessed as multi-residential is outside the declaration requirement
- Vacant land with no structure on it
- Parking spaces and condo lockers
Individual condo units, houses, semis, plexes assessed as residential and mixed-use properties with a residential component generally do need a declaration. If you hold several properties, each has its own declaration.
Deadlines for the 2025 occupancy year
- November 3, 2025 — the declaration period for 2025 occupancy opened, online, by phone through 311 or in person.
- April 30, 2026 — deadline to declare 2025 occupancy status.
- June 2026 — VHT notices issued to properties deemed or declared vacant.
- September 15, October 15 and November 16, 2026 — the three instalment dates for 2025 VHT bills.
- December 31, 2026 — deadline to dispute a 2025 bill by filing a Notice of Complaint.
The City has followed a similar rhythm for the 2026 occupancy year — declarations opening in the fall, a spring deadline — but confirm the dates on toronto.ca when the period opens. Late payments attract interest of 1.25% on the first day of default and on the first day of each month after.
What counts as "occupied"
A property is occupied for VHT purposes if, for at least six months of the year, it was:
- Your principal residence — where you live, receive mail and pay bills. You can only have one.
- Rented to tenants under written agreements of at least 30 days, adding up to at least six months in the year.
- Occupied by family or friends as their principal residence.
The tenant test matters for investors. Short-term rentals of a few nights at a time do not count toward the six months. A furnished unit let on 30-day-plus agreements does, as long as the paperwork exists.
The exemptions
A property that was vacant may still be exempt. Each exemption has conditions and documentation requirements:
| Exemption | Key condition |
|---|---|
| Death of the registered owner | Available for up to three consecutive years; death certificate required |
| Principal resident in care | Owner in a hospital, long-term care or supportive care facility for six months or more; up to two consecutive years |
| Repairs or renovations | Work preventing occupancy for six months or more, with all permits issued and work actively under way |
| Transfer of ownership | Sale closed in the taxation year and 100% of ownership transferred |
| Full-time occupant for employment | Owner or spouse worked in Toronto for six months or more, with a principal residence outside the GTA |
| Court order | Order prohibiting occupancy for six months or more |
| Vacant new inventory | Unsold developer units actively marketed for sale; time-limited |
| Secondary residence for medical reasons | Needed for medical treatment, with a principal residence outside the GTA |
The renovation exemption is the one landlords most often get wrong. Permits must be issued, not just applied for, and the work must be actively under way. A unit sitting empty between tenants while you "plan a refresh" does not qualify.
Audits, records and fines
The City audits declarations. If your property is selected, you have 60 days to provide supporting documents — leases, tenant identification, insurance, utility bills, permit records. Records supporting a declaration or exemption must be kept for at least three years.
A false declaration, or failing to provide information when asked, can lead to a fine of up to $10,000, on top of the tax itself. If you disagree with an audit decision, you can file a Notice of Complaint within 90 days.
Where landlords get caught
- Long vacancies between tenants. A unit empty from March to October is vacant for VHT purposes unless an exemption applies.
- Assuming the property manager declared. The obligation is the owner's. Confirm in writing who files.
- New purchases. The transfer-of-ownership exemption covers the year of closing, but the next year's status still has to be declared.
- Corporate owners. A holding company that owns a condo still has to declare it.
Two examples
A Liberty Village condo, rented with a gap. The tenant moves out on March 31 and the next lease starts on June 1. The unit was tenanted for ten months under written leases, so it is occupied for the year. Declare it, and keep both leases.
A Riverdale semi under renovation. The owner buys in January, pulls permits in April, and the work runs until November with nobody living there. The repairs exemption may apply — but only for the period with issued permits and active work. Keep the permit, contractor invoices and dated site photos, because that is exactly what an audit will ask for.
How we help
For managed properties we track occupancy month by month, keep signed leases on file, and remind owners — or file on their instruction — before the deadline. Short vacancies are the best defence, which is why tenant placement and fast turnovers matter. For properties that must sit empty during a renovation, our vacant property management keeps the permit and site records the exemption depends on. Owners across Toronto also get the paperwork in their monthly statements.
General information, not legal advice. Vacant Home Tax rules, rates and deadlines are set by the City of Toronto and can change; confirm the current year's requirements on toronto.ca.