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The vacant tax Toronto homeowners hear about is the city’s Vacant Home Tax, and it costs 3% of your property’s assessed value for a year in which the home sat vacant six months or more. On a home assessed at $900,000 that’s $27,000. We’re assuming you mean this tax, not a tax on empty land, and we’ll come back to land below.
Who pays the vacant tax in Toronto?
The owner of a residential property that was vacant for six months or more in the taxation year. The rate applies to the property’s Current Value Assessment, the figure MPAC sets, and it has been 3% since the 2024 taxation year. It’s not your purchase price and it’s not what a realtor would list at.
Owners declare each year whether the home was occupied. If you don’t declare, the City treats the property as vacant and taxes it. That’s the part that catches people out, because a house that was lived in all year can still get a bill if the declaration never went in.
So declare, even if you lived there all year. The same goes if you think you qualify for an exemption: the City still wants the declaration.
What does 3% cost on a real assessment?
Multiply the assessed value by 0.03. That’s it. The property tax calculator does the same with a rate you type in, so you can try your own assessment.
| Assessed value | Tax at 3% | Each of three instalments |
|---|---|---|
| $600,000 | $18,000 | $6,000 |
| $900,000 | $27,000 | $9,000 |
| $1,200,000 | $36,000 | $12,000 |
The instalment column is our own division. For the 2025 taxation year, the City says payment is due in three equal instalments on September 15, October 15 and November 16, 2026. Today the first of those has passed, so if you haven’t paid, the next two dates matter. Miss a date and interest of 1.25% is added at once, then again each month the balance stays unpaid. On a $9,000 instalment that’s $112.50 for the first month, a few bucks a day you didn’t need to spend.
Which homes are exempt from the vacant tax?
The City lists eight situations that count as exempt:
- the registered owner died (up to three consecutive years)
- the principal resident is in a hospital or care facility (up to two consecutive years)
- major repairs with permits kept the home from being lived in for six months or more
- ownership changed hands during the year, for a 100% transfer
- the owner or spouse worked full time in Toronto for six months or more while living outside the GTA
- a court order barred occupancy for six months or more
- new inventory a developer is actively offering for sale (up to two years)
- a secondary residence needed for medical reasons
Each has conditions, and most need paperwork such as a death certificate, permits or a court order, so read the City’s page for the exact test before you rely on one.
What about vacant land and rentals?
Vacant land with no building on it doesn’t need a declaration, according to the City. Neither do properties assessed entirely as multi-residential, commercial or industrial, or parking spaces and condo lockers. So an empty lot isn’t caught by this tax, though we didn’t confirm whether other city charges apply to it.
A rented home still has to be declared. As the City describes it, a home isn’t taxed when a tenant lives there under a written agreement of at least 30 days and the tenancies add up to at least six months in the year. Family or friends staying there can count too, but only if it’s their principal residence for six months or more. If you do rent, the rental income tax calculator shows what the rent does to your return. If you’re weighing whether to keep or sell an empty house, the home sale proceeds calculator shows what you’d walk away with, and the condo ownership cost calculator adds up the yearly cost of holding a unit.
What if the bill looks wrong?
Start with a Notice of Complaint. For the 2025 bill the City gives December 31, 2026 as the date to file it, and a notice after an audit has its own 90-day window from the date on the bill. If the result doesn’t satisfy you, the next step is an appeal to the Deputy Treasurer within 90 days, decided in a written hearing. The City says that decision is final.
Keep the bill date. The clock starts there.
Unpaid vacant tax is added to the property tax roll and becomes a lien on the property, and the City says a buyer can be held responsible for it. If you’re purchasing in Toronto, ask for confirmation that the vacant tax is dealt with.
The 2025 declaration portal has closed. We couldn’t find deadlines for the 2026 taxation year, which would be declared in 2027, so watch the City’s page rather than counting on last year’s dates.
Where the numbers come from
The rate, the six-month test, the instalment dates, the interest, the exemptions, the rental rule and the complaint process are all taken from the City of Toronto’s own Vacant Home Tax page. The examples are our own multiplication. Nothing here is advice on a specific property, and we have no link to the City.
Frequently asked questions
What is the vacant tax in Toronto?
It's the City's Vacant Home Tax, 3% of the property's Current Value Assessment when a home is vacant for six months or more in the taxation year.
What happens if I don't declare?
The City says an undeclared property is deemed vacant and taxed.
When is the 2025 vacant home tax due?
In three equal instalments on September 15, October 15 and November 16, 2026, according to the City.
Does vacant land pay the tax?
The City says vacant land without a structure doesn't need a declaration. We didn't confirm other charges on land.
How do I dispute a bill?
File a Notice of Complaint within 90 days of the bill date. A further appeal to the Deputy Treasurer must be made within 90 days.
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