A Toronto home assessed at $950,000 that sits vacant for the year owes a Vacant Home Tax of $28,500. That is 3% of the assessed value, or $2,375 a month. Two vacant years would cost $57,000. Homes that are lived in, or rented as a principal residence for at least six months, pay nothing.
Who has to declare
Owners of residential property in Toronto declare their occupancy status. Multi-residential, commercial and industrial properties are outside the tax. The rate has been 3% of the Current Value Assessment since 2024, and the City says the revenue goes to affordable housing initiatives.
What the calculator does
Enter your assessed value and the number of vacant years, and it shows the tax for each. Choose the exempt option and the result drops to zero. It is a planning tool, so the City’s own bill is what counts.
Which value the City uses
The rate applies to the Current Value Assessment on your property tax bill. That figure can sit well below what the home would sell for today. Use the number from the bill, not a listing price.
When a home counts as occupied
A home is occupied if it is the owner’s principal residence. It also counts if someone else lives there as their principal residence for at least six months of the year, such as a tenant or a family member. Exemptions cover some absences, such as employment requirements or a stay in a care facility.
Declaring every year
Do it early. The form is short, and a missed deadline costs far more than the time it takes.
Every owner declares occupancy each year, even when no tax is due. The deadline is April 30. Skip it and the City assumes the home is vacant and sends a Notice of Assessment. False information can bring a fine of up to $10,000 on top of the tax, and the City can audit a declaration for three years, so keep leases and utility bills.
Exemptions
The City lists several. They include the death of an owner, an owner in a care facility, major renovation, a transfer of ownership in the year, a court order and a secondary residence held for medical reasons. Each needs paperwork. The City’s list also includes new inventory held by developers. If your case doesn’t fit a listed exemption, the tax applies, so read the City page before you file.
A second worked example
Take the average assessed home in Toronto’s 2026 budget figures, $692,140. Left vacant for a year, it owes 3%, which is $20,764.20, or about $1,730 a month. Rent it out to a tenant under a written agreement of at least 30 days, for a total of six months or more as their principal residence, and the home counts as occupied. The tax is nil, whatever the rent.
That doesn’t make renting free money. You still need to weigh rent against costs and the time the home sits between tenants. But it shows why the calculator lists up to five years: the bill compounds fast against any plan to wait for the market.
Paying the bill and late interest
The City lists three instalments for the 2025 Vacant Home Tax: September 15, October 15 and November 16, 2026. Late payments accrue interest at 1.25% on the first day of default and on the first day of each month after. On a $28,500 bill, one month of interest is $356.25.
Comparing the cost with your options
At 3%, an empty home 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 up to five years so you can compare. Test the rent side with the rental property calculator, and see your regular yearly bill in the Toronto property tax calculator.
If you receive a bill you disagree with
You can file a complaint through the City portal. For the 2025 bill the deadline is December 31, 2026. Appeals follow within 90 days of the complaint decision. Our Vacant Home Tax dispute guide covers the steps. See also the Cap Rate calculator, and the full set of tax calculators.
Sources
Common questions
How is the Vacant Home Tax calculated?
When must I declare?
Who pays nothing?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.