The basics
Toronto's Vacant Home Tax (VHT) charges 3% of a property's Current Value Assessment (CVA) for each year a home sits vacant more than six months without qualifying for an exemption. Note the base: CVA is MPAC's assessed value, not your market value — but on any Toronto property the bill is real money. A condo assessed at $500,000 that sits empty draws a $15,000 charge. Every year.
Everyone declares — not just owners of empty homes
The part that still catches people: every residential property owner in Toronto must file an occupancy declaration each year, usually early in the year for the previous calendar year, even if you live in the home yourself. Miss the declaration and the city can deem the property vacant and bill you first, leaving you to dispute it afterwards. Check toronto.ca for the current deadline and to file — it takes minutes.
The main exemptions
- It was your principal residence (or a permitted occupant's, or a tenant's) — occupied homes aren't the target.
- Death of the owner, or the owner in care.
- Major repairs or renovations with permits, making occupancy impractical.
- A court order prohibiting occupancy, or a sale of the property that year.
If you're an investor
The strategy of letting a unit sit empty and riding appreciation now has a 3%-per-year headwind on top of carrying costs. Two clean exits: rent it — a properly papered tenancy removes the VHT question entirely and produces income — or sell into a market where priced-right homes still transact. We can run both numbers for you honestly; sometimes the answer genuinely is "keep it and lease it," sometimes it isn't.
If you're a renter
This tax exists partly for you: its whole design pushes empty units back into the rental pool. Units surfacing to avoid the VHT tend to appear ahead of declaration season — worth knowing when you time a search.
Own a Toronto property that's sitting empty?
Lease it or sell it — we'll give you the straight math on both, from real comparables, before you decide anything.
Sources: City of Toronto — Vacant Home Tax program (rate 3% of CVA); exemption categories per the City's published criteria. Verify current-year deadlines at toronto.ca. Originally published on this site; rewritten and refreshed June 2026. This article is general information, not legal or financial advice — speak with a Realtor®, or a lawyer where noted, about your situation. NestAbode · Right at Home Realty, Brokerage.