If you are a homeowner in Toronto, even if your house is not vacant, you must file your ‘Vacant Home Tax’ report by the 2nd of February.
Vacancy tax is levied on houses that are vacant for more than six months in a year, but it is mandatory to report the state of occupancy even if the house is not vacant. If you miss the filing deadline, you could be fined $250, and the house may be considered vacant, and you may have to pay taxes.
Reporting is simple. It is available on the City of Toronto website (www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/) and requires the identification number (Assessment Roll Number and Customer Number) written on the property tax bill.
The vacant house tax is a tax levied by the city of Toronto from this year to prevent real estate speculation and increase rental supply, and the tax rate is 1%.
For example, if the owner of a $1 million home leaves the house vacant for an extended period of time, he or she will have to pay $10,000 in taxes per year. However, cases where the landlord has died, is in a hospital or long-term care facility, is undergoing major repairs or renovations, or is in the process of legal transfer of ownership are exempt from taxation.