Currently the Toronto City Council is working to implement Vacant Home tax from 2022 with some exemptions. Find more details under the following link:

https://www.toronto.ca/legdocs/mmis/2021/ex/bgrd/backgroundfile-168674.pdf

The recommended initial tax rate for Toronto’s vacant home tax is 1.0% of the property’s Current Value Assessment (CVA) for the reference year. Under the definition being proposed by the City, a residential unit is “vacant” if it has been unoccupied for more than six months during the prior calendar year or it is deemed to be vacant in accordance with a by-law. Some exemptions will be including:

  • Principal residence;
  • Snowbirds;
  • Rental restriction or prohibition;
  • Death of a registered owner – in year of death and one subsequent year only;
  • Residential unit is undergoing redevelopment or major renovation that makes occupation impossible for a period of 6 months or longer – with permits issued and actively being pursued;
  • Registered owner is in care, institutionalized or hospitalized – allowable for 2 consecutive years;
  • Residential unit is subject to a restriction or prohibition on rental – i.e., a condo building with restrictions on allowing condominium units to be made available for rental;
  • Legal ownership of residential unit has been transferred to an arm’s length transferee – during year of sale only;
  • Occupancy for full-time employment – the residential unit is occupied by a registered owner with a principal residence outside of a defined Greater Toronto Area and the property is required for employment purposes in Toronto for an aggregate of at least 6 months per year; and
  • Court order is in place prohibiting occupancy of the residential unit.