Are you considering buying a home in Toronto? As a local realtor, I’m here to guide you through the intricacies of the city’s real estate landscape. The Vacant Home Tax (VHT) is designed to address housing shortages and encourage property utilization.
1. What is the Vacant Home Tax?
The VHT aims to boost housing availability by discouraging property owners from leaving their residential properties vacant. Revenue generated from this tax is channeled into affordable housing initiatives.
2. How Does it Work?
Property owners must declare the occupancy status of their properties annually. While certain exemptions apply, properties deemed, declared or found vacant for over six months during the previous year are subject to the tax.
3. Vacant Home Tax Calculation
For 2022 and 2023, the tax is set at 1% of the property's Current Value Assessment (CVA) for each year of vacancy. From 2024 onwards, this increases to 3% of the CVA. Payments are made in three installments.
4. Declaration Process
Utilize the City's secure online portal for a hassle-free declaration process. Ensure you have your assessment roll number and customer number on hand for quick submission.The deadline to declare is February 29, 2024.
Here is the link to submit your declaration if you haven’t already done so:
5. Exemptions and Appeals
Certain situations, such as property undergoing renovations or the death of an owner, may qualify for exemptions. If you disagree with a tax assessment, you can file a Notice of Complaint or Appeal.
6. How do I get around vacancy tax?
Vacancy tax can be avoided if the owner occupies the property themselves or has a tenant, for at least six months per year.
Get Started Today
Ensure compliance and peace of mind by understanding and fulfilling your obligations under the Vacant Home Tax regulations.
Looking to Buy or Sell? Contact me today for a free consultation.
Alim Sovani | Sovani Realty
647-963-1799
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