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The Toronto vacant property tax is officially called the Vacant Home Tax, and it’s 3% of the property’s Current Value Assessment for the 2024 tax year onward. Assessed at $1,000,000, that means $30,000. Six months or more of sitting empty in the year makes it vacant.
What counts as vacant in Toronto?
The city calls a residential property vacant when it was unoccupied for six months or more of the taxation year. The tax targets residential properties. We didn’t confirm how it treats other property types, so check the city page if yours is a commercial or mixed building.
There’s a catch that surprises owners. Miss the annual declaration deadline and the city treats the property as vacant. You can owe the tax on a lived-in home just because the form never went in.
How much is the vacant home tax?
Three per cent of assessed value, every year the property is vacant. The table shows what that means at a few values. The figures are plain arithmetic on the city’s rate.
| Current Value Assessment | Vacant home tax at 3% | Regular tax at 0.767311% |
|---|---|---|
| $700,000 | $21,000 | $5,371 |
| $1,000,000 | $30,000 | $7,673 |
| $1,500,000 | $45,000 | $11,510 |
For comparison, the last column uses Toronto’s 2026 residential property tax rate. Vacant tax comes separately from your regular bill, and it’s about four times the normal yearly tax, which is the point. You can test your own regular figure in the property tax calculator.
Which vacant properties avoid the tax?
The city lists eligible exemptions. These include an owner’s death, a principal resident in a care facility, permitted major repairs or renovations, a transfer of legal ownership within the year, an employment requirement in Toronto, a court order that prohibits occupancy, new developer inventory for the first two years, and medical necessity for a secondary residence.
Each has conditions on the city’s page that we didn’t copy here. Read the exact wording before you rely on one, and keep the paperwork, such as permits or a court order.
What happens if you get it wrong?
A false declaration of occupancy status, or failing to give information when the city asks, may bring a fine up to $10,000 plus the tax. Late amounts are charged 1.25% interest per month.
Per the city’s page, tax for 2025 is paid in three instalments: September 15, October 15 and November 16, 2026. We haven’t seen the dates for later years, so watch for the city’s announcement.
If you own a vacant property, what are the options?
Run the numbers on each route before the year ends. Renting it out turns the empty months into income, and our rental property calculator tests whether rent covers your costs. Selling ends the carrying cost, and the home sale proceeds calculator estimates what you’d net. Any profit may be taxable, so look at the capital gains tax calculator too.
A change of legal ownership within the year is one of the listed exemptions, so the closing date matters.
Mistakes owners make
Missing the declaration is the top one. A second is assuming a short tenant stay, or a few weekends a year, fixes the problem. The test is six months or more of vacancy, and we didn’t confirm how the city treats partial occupancy, so ask before assuming. A third is treating the bill as optional because the house is “being sold soon.” Check the exemptions list, and the transfer rule in particular.
Where the numbers come from
Toronto’s Vacant Home Tax page gives the rate, definition, exemptions, fine, interest and instalment dates. For the regular residential rate we used the city’s 2026 property tax rates page. The dollar examples are our own arithmetic on those rates.
Frequently asked questions
How much is the Toronto vacant home tax?
It's 3% of the property's Current Value Assessment, from the 2024 taxation year. On a $1,000,000 assessment that's $30,000.
When is a home counted as vacant?
When it was vacant for six months or more during the taxation year. If no declaration is submitted by the deadline, the city deems it vacant.
What is the penalty for a false declaration?
A fine of up to $10,000 on top of the tax, per the city. Overdue amounts carry interest of 1.25% a month.
Are there exemptions?
Yes. They include the death of an owner, repairs with permits, care facility stays, court orders and medical necessity for a secondary residence.
When do I pay?
For the 2025 year the city lists instalments on September 15, October 15 and November 16, 2026.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.