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

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

The initial recommended tax rate for Toronto’s vacant home tax will be 1 percent of the property’s Current Value Assessment (CVA) in the reference year. Under the definition being proposed by the City a residential unit is considerent vacant if it has been unoccupied for more than six months during the prior calendar year or if it is deemed to be vacant in accordance with a by-law. Some exemptions will include:

• Principal residences
• Snowbirds
• Death of a registered owner – in the year of death and for one subsequent year only
• If a residential unit is undergoing redevelopment or major renovation that makes occupation impossible for a period of 6 months or longer – depending on the permits issued
• If the registered owner is in long term care, institutionalized or hospitalized – this is allowable for 2 consecutive years
• If the 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
• Cases where the legal ownership of residential unit has been transferred to an arm’s length transferee – during the year of sale only;
• Situations of occupancy for full-time employment – whe the residential unit is occupied by a registered owner with a principal residence outside of the defined Greater Toronto Area and the property is required for employment purposes in Toronto for an aggregate of at least 6 months per year
• Or in cases where a court order is in place prohibiting the occupancy of the residential unit.