A Toronto home assessed at $950,000 that sits vacant for the year faces a Vacant Home Tax of $28,500. That is 3% of the assessed value, or $2,375 a month. Two years of vacancy would cost $57,000. Homes that are lived in or rented for at least six months pay nothing.
What the tax is
The City of Toronto charges the Vacant Home Tax on homes that sit empty for more than half of the year. Bringing more housing into use is the aim. It is a percentage of the property’s assessed value, and the rate is 3%.
Which value the City uses
The rate applies to the assessed value on your property tax bill. That figure can sit below what the home would sell for today. Use the number from the bill, not a listing price, if you want an accurate answer.
When a home counts as vacant
A home is not vacant if the owner or a tenant lives in it for at least six months of the year. One that is empty, or holds only occasional guests, can count as vacant. So can a furnished home nobody uses. A short-term rental may not count as occupied, so check the City’s rules.
Declaring every year
Owners must tell the City each year whether the home was occupied, even when no tax is due. The City’s page gives April 30 as the usual deadline. Miss it and the tax can be charged. Keep records such as a lease or utility bills.
Exemptions
The City lists several. They include the death of an owner, an owner in a care facility, major repairs and renovations, a change of ownership during the year and court orders that stop occupancy. Each one needs paperwork. Choose the exempt option in the calculator and the result drops to zero.
Comparing the options
At 3%, leaving a home empty gets expensive fast. Renting it for six months of the year avoids the tax and brings in income. Selling ends the cost. The calculator shows the tax for up to five years, so you can set it against those choices.
With an empty home you can rent it, sell it, live in it or pay. At $28,500 a year on a $950,000 assessment, the tax is often higher than the rent you would give up by renting for six months. Run the numbers for each before the April declaration.
If the bill arrives anyway
A Notice of Assessment can arrive when a declaration was missed or filed late. You can dispute it through the City’s online portal with proof that the home was lived in or rented, or that an exemption applied. Leases, utility bills and permits all help. The Vacant Home Tax dispute guide lists the deadlines and the appeal steps. Keep records for three years, since the City may audit a declaration for that long.
Where to go next
See your regular yearly bill in the Toronto property tax calculator. Test the income from renting in the rental property calculator. Work out the cost of a purchase with the land transfer tax calculator, and the tax on a sale with the capital gains tax calculator.
Frequently asked questions
What is the Toronto Vacant Home Tax rate?
3% of the property's assessed value.
Which homes pay the tax?
Homes left vacant for more than half of the year, unless an exemption applies.
Do I need to declare if I live in the home?
Yes. Owners must declare occupancy status every year.
What is the declaration deadline?
The City's page gives April 30 as the usual date.
Which exemptions exist?
Examples are death of an owner, care facility, major renovation and court orders.
Does renting the home avoid the tax?
Renting it for at least six months of the year means it is not vacant.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.