Updated Checked by the Tax-Services.ca editorial team How we check
Ontario has no province-wide vacant home tax that we could find. The vacant home tax people mean is Toronto’s, and it charges 3% of your property’s Current Value Assessment (CVA) if the home sat empty for six months or longer. On a $1,200,000 assessment, that’s $36,000 added to your normal property tax.
What is the vacant home tax in Ontario?
It’s a city program, and the City of Toronto says it applies only to Toronto. We didn’t confirm what other Ontario towns charge, so if you own outside Toronto, ask your own municipality. Don’t assume the Toronto rules carry over. A cottage in Muskoka or a condo in Ottawa isn’t covered just because it’s in the same province.
The rate is 3% of the CVA from the 2024 taxation year. The city’s page says it stays at 3% for 2025 as well. We couldn’t find a published 2026 rate, so confirm the current rate with the city before you budget.
Do you have to declare if you live in the house?
Yes, and that’s the step people forget. Every owner of a residential property files a declaration of occupancy status each year by April 30, even when the family lives there all year. Multi-residential buildings, commercial and industrial properties, and vacant land are outside the program.
What happens if you forget? The city assumes the property was vacant and mails you a Notice of Assessment. So you could be charged 3% of the CVA for a house you occupied all year. For the 2025 year, the declaration period has closed, but the page gives December 31, 2026 as the deadline to dispute, so look there if you got a notice you don’t agree with.
Picture Raj, who lives in his Etobicoke bungalow all year and never opens a letter from the City. No declaration means no proof, and the City taxes the house as vacant. The fix for Raj is a complaint with evidence that he lived there, which is a lot more work than ticking a box in April.
What counts as vacant, and what is exempt?
A property is vacant if it was unoccupied for six months or longer in the taxation year. The city lists eight exemptions. They cover things like the death of an owner, an owner who lives in care, major repairs or renovations, a change of ownership, full-time work that keeps you away, court orders, new construction held as inventory, and medical reasons.
Each exemption has its own conditions, and we didn’t copy them all. Read the city’s list before you claim one, because a wrong claim is what the penalty rules are for.
Rented homes still need a declaration, but the city says a home isn’t taxed when tenants live there under a written agreement of at least 30 days, adding up to at least six months of the year.
What does the tax cost on a real house?
| Current Value Assessment | Vacant home tax at 3% |
|---|---|
| $800,000 | $24,000 |
| $1,200,000 | $36,000 |
| $1,500,000 | $45,000 |
It comes in addition to regular property tax. To see the regular bill, use the property tax calculator with your assessed value and mill rate.
An empty house has to be weighed against the alternatives. Rent it out and the income is taxable; the rental income tax calculator shows how much. If you’re thinking of selling, the home sale proceeds calculator shows what you’d keep. And the condo ownership cost calculator adds up the monthly cost of holding a unit.
What are the penalties, and what about the federal tax?
A false declaration or a refusal to give information when the city asks can cost you a fine of as much as $10,000 plus the tax itself. Pay late and interest builds at 1.25% each month. Unpaid tax also goes onto the property tax roll as a lien, so it follows the house.
The federal Underused Housing Tax is a separate thing, and it’s on its way out. The CRA says affected owners don’t file or pay it for 2025 and later calendar years, although filing and payment still apply to 2022, 2023 and 2024. If you missed one of those years, the CRA page is where to start.
Our sources
The rate, the six-month rule, the April 30 deadline, the exemptions, the rental rule and the penalties were read on Toronto’s own vacant home tax page, read in October 2026. The federal details come from CRA pages on the Underused Housing Tax. The table is plain arithmetic at 3%. This site has no link with the City of Toronto, the CRA or any other government body.
Frequently asked questions
Is there a vacant home tax across Ontario?
We found no province-wide tax. The Toronto program covers Toronto alone. Ask your own city about local rules.
How much is Toronto's vacant home tax?
3% of the property's Current Value Assessment since the 2024 taxation year.
When is the declaration due?
Each year by April 30. A missing declaration is treated as a vacant property.
How long must a home sit empty to count as vacant?
Unoccupied for six months or more of the taxation year, per Toronto's page.
Is the federal Underused Housing Tax still in force?
Not for 2025 and later years. Filing and payment still apply to 2022, 2023 and 2024.
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