February 26, 2024 | Homeownership
Homeowners in Toronto are reminded to submit their 2023 occupancy status by February 29th. If you fail to submit a declaration of occupancy status by the deadline, your property will be considered vacant and subject to the Vacant Home Tax. Starting from January 1, 2024, a fee of $21.24 will be charged for not submitting the declaration on time. The city’s vacant home tax (VHT) imposes a 1% taxation rate on properties valued at $1 million or more by Toronto’s Current Value Assessment (CVA) that are left vacant for more than six months in a calendar year. The tax aims to increase housing in the city by discouraging owners from leaving their residential properties unoccupied. It is in its second year, and starting in 2024, the tax rate will be 3% following council approval in October, amounting to $30,000 on a $1 million home.
Homeowners can make their declaration online at the city’s portal. While most homeowners won’t have to pay the tax, the city mandates that every homeowner must declare their occupancy status by February 29th or pay a fee. The city will send “Notices of Assessment for Vacant Home Tax” to homeowners who have declared, deemed, or determined vacant residences. Those who fail to declare their properties will be deemed vacant, and they will receive notifications by the end of March.
Homeowners who disagree with the VHT assessment can file a complaint through the online portal starting in early April. The city ensures that property owners without computer access can authorize someone to submit their declaration online on their behalf. Additionally, more information, including how to get in-person help submitting your declaration, can be found on the city’s website.