This year Toronto introduced a new vacancy tax designed to discourage homeowners with multiple properties from leaving them vacant in an attempt to help increase the availability of housing supply in the city.
According to the City of Toronto’s website, “All residential property owners in Toronto will be required to declare the status of their property(s) annually, even if they live there. Declarations must be made by the homeowner or someone acting on behalf of the owner. The declaration will determine whether the Vacant Home Tax applies and is payable.”
Principal residences may be left unoccupied for periods of up to a total of six months throughout the taxation year without being subject to the tax.
If your property is appraised at $1M you will be taxed $10,000. The tax is 10%. If you need advice, reach out to your tax accountant or lawyer to make sure you understand it correctly, because false information could result in fines.
All Toronto residential property owners must submit a declaration of their property’s 2022 occupancy status by February 2, 2023.
To make a declaration you will need your 21-digit assessment roll number and customer number from your property tax bill or property tax account statement.
Declarations of occupancy status should be made through the City’s secure online declaration portal. If required, homeowners can complete a paper declaration form PDF. The paper form must be completed in full and received by the City of Toronto before the deadline to avoid being issued a fine and having your property deemed vacant.
For more information visit - http://www.toronto.ca/vacancytax