If you own property in Toronto, this is something you cannot ignore. The Vacant Home Tax (VHT) isn’t “new” anymore—but every year, homeowners still miss the window and end up with a massive bill they didn’t expect.
Let’s break it down simply so you stay protected, avoid penalties, and know exactly what to do.
What is the Vacant Home Tax?
The City of Toronto introduced the VHT to push more housing back into the market.
The Rule: If your property is not your principal residence and sits empty for more than 6 months in a year, you could be taxed.
The Catch: Even if you live in your home full-time, you STILL have to declare it every year. > No declaration = the city may assume it’s vacant.
Key Dates for 2026
For the 2025 tax year (declared in 2026), the City has provided an extended window:
Portal Status: Currently OPEN.
Final Deadline: April 30, 2026.
Late Fee: Filing after the deadline usually incurs a fee ($21), but the real risk is being "deemed vacant."
Pro Tip: Don’t wait until April 30th. Grab your property tax bill now so you have your 21-digit roll number and customer number ready.
How Much Are We Talking?
The tax rate has tripled since the program started, making the stakes much higher.
Current Tax Rate: 3% of your home’s Current Value Assessment (CVA).
The Math: A property assessed at $1.2M = a $36,000 tax bill.
If you miss the deadline, the city can automatically send you that $36,000 bill. You then have to go through a lengthy "Notice of Complaint" process to prove you actually live there.
How to Declare (Takes 5 Minutes)
Visit the Portal: Go to the City of Toronto VHT portal.
Enter Details: Use your roll number + customer number.
Select Status: Principal residence, Tenanted, Vacant with exemption, or Vacant.
Save Your Receipt: Download the confirmation. Do not close the tab until you have a copy.
Common Exemptions
You may qualify for an exemption if the property was vacant because:
Death of the owner during the tax year.
Major renovations (with active building permits).
Medical care: Owner is in a hospital or long-term care facility.
Transfer of ownership: The home was bought or sold in 2025.
Work purposes: You live elsewhere but stay there for work (min. 6 months).
Missed the Deadline? Do This ASAP
If you’re reading this after April 30th, don't panic, but move fast:
File Late: Submit the declaration immediately. Paying the small late fee is better than the 3% tax.
Notice of Complaint: If you already received a "Vacant" bill, you must file a formal complaint through the City’s website to dispute it.
Audit Proof: Keep utility bills and ID ready; the city is increasing audits this year.
Quick FAQs
What about Airbnb? If it’s occupied for 6+ months total, it counts—but you must follow Toronto’s short-term rental rules.
Does this apply to condos? Yes. Any residential property with its own tax assessment is included.
What if someone lies? Fines range from $2,500–$10,000 plus the tax itself.
Final Thoughts
This really comes down to one thing: File it... or pay for it. Take 5 minutes today to get it done. If you aren't sure how this impacts your property value or your 2026 real estate strategy, reach out. I'm here to help you navigate the fine print.
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