Toronto Vacant Home Tax: who pays 3%, and how to avoid it
Toronto charges 3% of a home's assessed value each year it sits empty for six months or more, and every owner must declare by April 30 or the City assumes it was empty. Enter your assessed value to see the tax, and what renting it out would bring in instead.
Updated October 6, 2026
Toronto Vacant Home Tax calculator
Empty for 12 months, the tax is $18,000 (about $1,500 a month): 7.2 months of rent. Renting it out for a year means $30,000 of rent and no tax, less the Monthly Subscription listing at $79 with HST. Toronto only; exemptions aside. An estimate, not tax advice.
Use the assessed value (Current Value Assessment) on your property tax bill, not today's market price: Ontario assessments are still based on January 1, 2016 values. The tax is 3% of it for any home empty six months or more in the year, or not declared by April 30. A tenant with a written lease of at least 30 days, for at least six months of the year, makes the home occupied.
How the Vacant Home Tax works
- Every owner declares, every year, even if you live there: online, with the customer number and assessment roll number from your property tax bill. The deadline is April 30 of the following year (the 2025 declaration closed April 30, 2026).
- No declaration means vacant. If the City doesn't receive it by April 30, it assumes the home was empty and sends a bill.
- Vacant means six months or more of the year without anyone living there as their principal residence.
- The bill is 3% of the assessed value. Owners who owe it get a notice in June. For the 2025 tax, payments are due in three instalments: September 15, October 15 and November 16, 2026.
- You can dispute a bill with a Notice of Complaint: for 2025 bills, by December 31, 2026. The City audits declarations, gives you 60 days to send documents, and can fine you up to $10,000 on top of the tax for a false declaration. Keep your records for three years.
The rate by year
The tax started with the 2022 taxation year at 1% and tripled from 2024. The money goes to affordable housing.
| Taxation year | Rate | On a $600,000 assessed value |
|---|---|---|
| 2024 and later | 3% | $18,000 |
| 2023 | 1% | $6,000 |
| 2022 | 1% | $6,000 |
What counts as occupied
- Your principal residence for at least six months of the year, even if you travel or work away for long stretches (snowbirds included).
- Tenants with a written agreement for a term of at least 30 days, adding up to at least six months in the year. Business tenants count. Short stays under 30 days don't.
- Family or friends living there as their principal residence for at least six months.
- Condo units are declared one by one. You don't declare a fully multi-residential, commercial or industrial property, vacant land, a parking space or a condo locker.
Exemptions (you still have to declare)
An empty home can be exempt, but only if you declare it with the documents the City asks for:
| Exemption | When it applies |
|---|---|
| Death of an owner | Empty 6+ months because an owner died; up to 3 years in a row |
| Principal resident in care | In hospital or long-term/supportive care 6+ months; up to 2 years in a row |
| Repairs or renovations | Work with all permits issued stops normal use for 6+ months, carried out without unnecessary delay |
| Transfer of ownership | The sale closed in that year (a 100% transfer, not adding or removing a name) |
| Full-time work in Toronto | You or your spouse work in Toronto 6+ months and your principal residence is outside the GTA |
| Court order | A court order bars anyone living there for 6+ months |
| New inventory | A developer's new, never-occupied unit offered for sale; up to 2 years |
| Medical second residence | Needed for you, your spouse or a dependant for medical reasons; principal residence outside the GTA |
Selling or buying an empty home
For the year the sale closes, either the seller or the buyer can declare, and the home qualifies for the transfer of ownership exemption. For the year before, only the seller knows, so the seller declares and should give the buyer a copy. A buyer of a home that was never declared should ask their lawyer to get proof from the seller: a power of sale isn't an exemption. Selling an empty Toronto home? List it for a flat fee and keep the commission: see selling a house privately in Ontario.
The federal Underused Housing Tax is going away
Separate from Toronto's tax, the federal government's 1% Underused Housing Tax applied mainly to foreign owners and some corporations. Budget 2025 proposed ending it from the 2025 calendar year; returns and tax for 2022 to 2024 are still owed. Toronto's Vacant Home Tax is unaffected.
Rent it out instead
On a $600,000 assessed value, a year empty costs $18,000: about 7 months of rent at $2,500. A tenant on a written lease of 30 days or more for at least six months of the year makes the home occupied, so the tax doesn't apply and the rent comes in. We list rentals on the MLS® System and realtor.ca for a flat fee from $69.99 a month, and you deal with tenants directly. Before you rent, read how to rent out your house in Ontario and the rent increase rules. Facts here are from the City of Toronto, checked October 2026; not tax advice.
Vacant Home Tax questions
What is the Toronto Vacant Home Tax rate?
3% of the property's assessed value (Current Value Assessment) from the 2024 taxation year. It was 1% for 2022 and 2023.
When is the Toronto Vacant Home Tax declaration due?
April 30 of the year after the taxation year: the 2025 declaration was due April 30, 2026. Every owner must declare, even if they live in the home. A missed declaration means the City treats the home as vacant.
How long can a house be empty before the Vacant Home Tax applies?
Less than six months in the year. A home that's empty for six months or more is vacant, unless an exemption applies.
Does renting out my home avoid the Vacant Home Tax?
Yes, if the tenants have a written agreement of at least 30 days and live there for at least six months of the year in total. Short-term stays under 30 days don't count.
Is there a Vacant Home Tax exemption for renovations?
Yes, if major work with all permits issued stops anyone living there for at least six months, and the City agrees the work is going ahead without unnecessary delay. You still have to declare and send the permits and a description of the project.
What happens if I don't declare?
The City assumes the home was vacant and bills you 3% of its assessed value. You can dispute the bill with a Notice of Complaint by the deadline on it (December 31, 2026 for 2025 bills).
Does the Vacant Home Tax apply to condos?
Yes. Each condo unit is declared by its owner, and the tax depends on whether that unit was occupied. Parking spaces and lockers don't need a declaration.
Flat fee MLS® prices
| Plan | Price | 🎁 With code FREEUPGRADE |
|---|---|---|
| Monthly Subscription | $69.99 / month | — |
| 2-month Listing | $99.99 | You get the 3-month Listing, free |
| 3-month Listing | $119.99 | You get the 6-month Listing, free |
| 6-month Listing | $149.99 | You get the MAX Exposure Listing, free |
| MAX Exposure Listing | $239.99 | — |
Plus 13% HST on Ontario listings; no tax on Alberta listings. The monthly plan can be cancelled any time.
More than one empty unit? Pay once for the next listings
Buy listing credits in My Account after your first listing: 2 credits save 10%, 3 save 25%. Credits never expire, keep today's price and work on any property, for rent or for sale.
| Plan | 1 listing | Each, when you buy 3 |
|---|---|---|
| 2-month Listing | $99.99 | $74.99 ($224.97 for 3) |
| 3-month Listing | $119.99 | $89.99 ($269.97 for 3) |
| 6-month Listing | $149.99 | $112.49 ($337.47 for 3) |
| MAX Exposure Listing | $239.99 | $179.99 ($539.97 for 3) |
Plus 13% HST on Ontario listings. Codes like FREEUPGRADE don't apply to bundles. Already listed with us? Buy credits in My Account.
Recently listed by sellers like you
75 Stevenson Street North, GuelphMLS® #X13861006
18 Cromarty Avenue, HaldimandMLS® #X13850856
$325,0000 Bayview Drive, RR1 WoodlawnMLS® #X13849844
C-12 Southwell Drive, TorontoMLS® #C13849080
1354 County Road 2, Leeds and the Thousand IslandsMLS® #X13835392
$595,0001-86A Bernick Drive BarrieMLS® #S13835166
$310,0002239 Southwood Rd, KilworthyMLS® #X13831964
$565,000112 Borland St E, OrilliaMLS® #S13585146What sellers say
“Rocket Listings saved me thousands in commission fees while still getting my property on MLS. Highly recommend!”
“Finally, an affordable way to list on MLS without paying outrageous realtor commissions. Game changer!”
“I was skeptical at first, but Rocket Listings delivered exactly what they promised. Professional service throughout.”
“Since discovering Rocket Listings I'll never go back to listing on FB Marketplace, the tenant pool is much better on Realtor.ca”
Empty home in Toronto? Rent it for a flat fee
Find a tenant on the MLS® System and realtor.ca from $69.99 a month. Use FREEUPGRADE at checkout to get the next plan up free.