Toronto charges a Vacant Home Tax (VHT) on residential properties that are not occupied as a principal residence or by a tenant. The part most owners trip over is not the tax but the declaration.
Everyone declares
According to the City (as of October 16, 2026), residential owners must declare their property's occupancy status every year by April 30, even if they live in it. An owner of several properties declares each one. If no declaration is received, the City deems the property vacant and taxable. An authorized representative can declare on the owner's behalf.
The City lists some properties that do not need to declare, including those assessed entirely as multi-residential, commercial or industrial, vacant land without a structure, and parking spaces and condominium lockers. That last point matters in lofts and condos where parking and storage are titled as separate units.
The rate
From the 2024 taxation year the rate is 3% of the property's Current Value Assessment (as of October 16, 2026). The assessment is MPAC's figure, not the market price (see property tax and assessment).
Exemptions the City lists
- Death of a registered owner
- The principal resident is in hospital or a care facility for at least six months
- Major repairs or renovations preventing occupancy for at least six months
- Transfer of legal ownership (a purchase closed in the taxation year)
- The owner or spouse works full-time in Toronto and lives outside the GTA
- A court order prohibits occupancy for at least six months
- Newly constructed units held by the developer
- A secondary residence needed for medical reasons, where the principal residence is outside the GTA
Each exemption has its own conditions and evidence requirements on the City's site.
When you buy
If you are buying a unit that a seller has not lived in, it is reasonable to ask through your lawyer whether the seller declared for the relevant years. Ask the lawyer how an unpaid or disputed VHT charge would be handled on closing.