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As introduced in 2022, all Toronto residential property owners are required to submit an annual declaration, outlining their residential property's status for the previous year. Homeowners who decide to keep their Toronto residential properties vacant will be subject to Toronto’s Vacant Home Tax (VHT).
Who will need to file a VHT occupancy declaration?
All property owners in Toronto are required to declare the occupancy status of their residential property annually (including Canadian citizens and permanent residents). The exceptions for not filing are:
your property is not yet assessed (new properties)
the property is classed as multi-residential, commercial or industrial
the property is classified as vacant land, parking space, or condominium locker
Understanding Vacancy Criteria – a property is deemed vacant if: the property is not the owner’s primary residence and was unoccupied by tenants/permitted occupants for a cumulative period exceeding six months.
2023 Vacant Home Tax (VHT) = 1% * the taxable value of the property * the percentage of ownership
2024 Vacant Home Tax (VHT) = 3% * the taxable value of the property * the percentage of ownership
Failure to submit a declaration by the February 29, 2024 deadline will result in a property being deemed vacant and subject to the Vacant Home Tax. Additionally:
Overdue Vacant Home Tax amounts incur interest at a rate of 1.25% per month and will be integrated into the property tax roll, collected concurrently with property taxes.
Failure to submit a declaration of occupancy status by the deadline may result in a $250 fine.
False declarations of occupancy status or failure to provide requested information may result in a fine up to $10,000.
As always, we are here to assist you with your filing and tax compliance requirements. If you are unsure of your requirement to file or if you would like our assistance in filing the declaration, please do not hesitate to contact our office for further details.
For more information on the Vacant Home Tax and related exemptions, please visit: https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/
For IMPACT CPA’s announcement about the Federal Underused Housing Tax, please visit: https://www.impactcpas.ca/post/the-underused-housing-tax-return-and-election-form-uht-2900
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