Did you know that as a property owner in Toronto you are now required to annually declare to the government whether you occupy your home for six months or more? Toronto’s new Vacant Home Tax comes into effect on February 3rd, 2022, and prescribes that homeowners must make this declaration in order to avoid a 1% tax penalty (based on the MPAC value of the property). There are reasonable exemptions to the vacancy, such as:

• The death of the owner in the taxation year
• If the property is undergoing repairs or renovations (certain requirements must be met in this regard)
• If the homeowner is in the hospital or a long-term care facility
• If legal ownership has been transferred to an arm’s length transferee in the taxation year (e.g. waiting for closing on a sale)
• If the home is required for occupation for employment purposes, but the owner has a principal residence outside of the GTA
• A court order is in effect that prohibits occupancy of the home for at least six months during the taxation year.

I have used the word ‘home’ in my brief overview, but it should be noted that this applies to all property types. 

As a homeowner in Toronto, you MUST make this declaration annually. You may use the link below to do so if you have not already done so for your 2022 declaration. If you have questions about this new tax, or for greater clarity on the exemptions, please feel free to reach out to us at any time.

Link to the City of Toronto’s Vacant Home Tax page, including online filing.