We found no official record of a proposed Vacant Commercial Property Tax in Toronto, and no such tax is in force. The City’s Vacant Home Tax covers homes only. Here is what the City’s pages confirm about vacant commercial property, what Council has asked staff to study and what a levy could cost.
The claim and the record
A story says councillors introduced a proposal on March 2, 2026, with a rate of 2% to 3% of assessed value and a six-month vacancy test. We searched the City’s property tax, budget and Council pages and found none of that. Motions can be hard to search, so it may exist, but we cannot state the date, rate or test as fact. Any figure below for a possible tax is a what-if.
How commercial property is taxed now
The 2026 commercial class rate is 2.301986%: a City rate of 1.411477%, an education rate of 0.88% and a City Building Fund rate of 0.010509%. Commercial and industrial vacant land is taxed about 30% lower than the full rate. That applies to land, not to an empty building. A small business subclass gives eligible properties a 20% reduction, but it has nothing to do with vacancy.
The City’s rates page mentions no vacancy rebate for commercial buildings. A help page on rebates for vacant commercial and industrial buildings did not load usable content, so we cannot say what it covers.
A storefront assessed at $2,000,000
The City part is $28,229.54, the education part is $17,600 and the Building Fund part is $210.18. The total is $46,039.72 a year. The same value as vacant land, taxed about 30% lower, would owe roughly $32,228, an estimate because the discount is approximate. For a home, the property tax calculator runs the matching split.
Comparing the Vacant Home Tax
From the 2024 tax year the rate is 3% of assessed value. Owners of residential property declare occupancy each year by April 30, and no declaration means the City assumes vacancy and sends a Notice of Assessment. Complaints go through the City portal, and an appeal must come within 90 days of the decision. A home assessed at $1,000,000 deemed vacant would owe $30,000. Try it in the vacant home tax calculator.
The City says the tax does not apply to property assessed fully as commercial, industrial or multi-residential, to vacant land without buildings, or to parking spaces and lockers. A shuttered shop is outside it. The Vacant Home Tax dispute guide covers the residential steps.
A levy of 2% or 3% as a what-if
On the $2,000,000 storefront, 2% would add $40,000 and 3% would add $60,000, taking the yearly bill to $86,039.72 or $106,039.72. For an owner of three units assessed at $1,500,000 each, ordinary tax is $34,529.79 a unit, or $103,589.37 in all. A 2% levy on all three empty units would add $90,000. These rates have not been announced. They only show scale.
Questions Council has put to staff
In 2020, Council asked the Chief Financial Officer and Treasurer to report on the feasibility of a vacant storefront tax, looking at how long a vacancy should last, possible amounts, other cities and staffing. A later motion, item 2025.MM28.36, asks staff to review ways to animate vacant storefronts with Business Improvement Areas and to report on a tax reduction for owners who host pop-ups and art. We could not open either full text, so we do not know the outcome.
A motion asks staff to look at something. Staff reports offer options. Only after a Council vote and a by-law does a tax exist. We also did not confirm what authority a commercial vacancy tax would need.
Help that does exist
The Commercial Space Rehabilitation Grant Program offers 50% matching funds for interior renovations of vacant storefronts, or in limited cases those at risk of vacancy. The program page did not load for us, so check its cap and rules. Under the 50% figure, a $60,000 renovation could draw up to $30,000. In the what-if, one year of a 2% levy on the $2,000,000 unit would cost $40,000, more than that match. That comparison is our own construction.
Steps for owners and tenants
Owners should check their assessment first, since any tax would depend on it. Watch Council agendas for items with vacant storefront or vacant commercial in the title, and read the staff report, which holds the numbers. Landlords can test yearly costs in the rental property calculator. For your own numbers, try the Land Transfer Tax calculator, or browse the real estate calculators.
Sources
- City of Toronto, Property Tax Rates and Fees
- City of Toronto, Vacant Home Tax
- City of Toronto Council, item 2025.MM28.36
Common questions
Does Toronto have a vacant commercial property tax?
Does the Vacant Home Tax apply to shops?
How is commercial property taxed in 2026?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.