RECENT UPDATE: Homeowners have until March 15 to submit a declaration of their property’s occupancy status. The deadline extension gives owners a final opportunity to avoid having their property deemed vacant and subject to the tax. Declare today: http://toronto.ca/VacantHomeTax

As the deadline for Toronto vacant home tax (VHT) declaration looms, homeowners are urged to act swiftly to avoid penalties. The city introduced the VHT as a measure to tackle housing scarcity, charging a tax on properties left vacant for more than six months within a year. For 2023, the rate is set at 1% of the property’s assessed value, equating to a $10,000 tax on a home assessed at $1 million.

Aimed at encouraging the utilization of vacant homes and increasing available housing, the Toronto Vacant Home Tax is set to escalate to 3% in 2024, significantly raising the stakes for property owners. Despite the majority of homeowners not being subject to this tax, a mandatory declaration of occupancy status by February 29 is required to avoid a $21.24 non-compliance fee.

The declaration process has been streamlined through an online portal provided by the city, ensuring accessibility for all property owners. For those whose properties are deemed or determined vacant, the city will issue Notices of Assessment, with provisions in place for disputing assessments via an online complaint system starting in early April.

For property owners without internet access, the city accommodates declarations through authorized representatives, ensuring no one is left behind. Additional resources and support for making declarations are available on the city’s official website, highlighting Toronto’s commitment to both enforcing the tax and assisting homeowners through the process.

This measure reflects a growing trend among major cities to utilize tax strategies as a means to address housing shortages and discourage property vacancy. As the deadline approaches, Toronto’s homeowners must navigate this new requirement, contributing to the city’s broader efforts to enhance housing availability for its residents.

It’s crucial for property owners to understand the broader implications of this policy. Beyond the immediate financial impact, the VHT aims to stimulate the local housing market by bringing more homes into use, potentially easing the city’s housing crunch. This tax serves as a prompt for homeowners to either rent out their vacant properties, sell them, or occupy them, thereby contributing to the city’s vibrancy and livability.

More information, including how to get in-person help submitting your declaration, can be found here.