Editor's note, October 6, 2026: this article was reviewed and rewritten in our accuracy check. An earlier version contained the wrong declaration deadline, invented penalty amounts, appeal and audit statistics, and a description of the federal Underused Housing Tax that is out of date; they have been removed or replaced with figures from the sources listed at the end of the article.
Toronto's Vacant Home Tax (VHT) is an annual tax on residential properties that sit empty for more than six months of a year. Since the 2024 tax year the rate is 3% of the property's current value assessment. On a home assessed at $1,000,000, that is $30,000 for a year of vacancy.
Every owner must declare, every year
The tax works on self-declaration. Every owner of a residential property in Toronto must declare its occupancy status for the previous year, whether they live in it, rent it out or leave it empty. For the 2025 occupancy year the deadline was April 30, 2026. A property with no declaration by the deadline is deemed vacant and billed. The City opens the declaration period each year (the 2025 period opened in November 2025) and publishes the dates on its VHT page.
A home counts as occupied if you, a permitted occupant or a tenant used it as a residence for at least six months of the year. The six months do not have to be consecutive.
Exemptions
A home that was vacant can still be exempt. The City lists the exemptions and the documents each needs; they include:
- Death of a registered owner (up to three consecutive tax years).
- Principal resident in care in a hospital, long-term care or supportive care facility (up to two consecutive years).
- Major repairs or renovations that prevent occupancy for six months or more, with permits issued and work actively under way.
- Transfer of legal ownership where the purchase closed in the year being declared.
- Secondary residence for medical reasons, where the owner's principal residence is outside the GTA.
The City can ask for proof of what you declared, so keep leases, utility bills, permits or care-facility letters for each year.
How the bill works
For the 2025 tax year, owners who owed the tax were sent notices in June 2026, payable in three instalments (September 15, October 15 and November 16, 2026). If you disagree with a notice, the City's VHT page explains how to file a complaint and the deadline for doing so.
Ottawa and Hamilton
Ottawa and Hamilton run their own vacant unit taxes, with their own rates, deadlines and exemptions. Hamilton's is 1% of assessed value on a residential unit vacant for more than 183 days in the previous year; for the 2025 year, declarations were due May 15, 2026. Ottawa's started at 1% and, from 2025, rises for each consecutive year a unit stays vacant. Check each city's page for the current year's rules before relying on them.
The federal Underused Housing Tax is ending
In Budget 2025 (November 4, 2025) the federal government moved to eliminate the 1% Underused Housing Tax starting with the 2025 calendar year: no UHT payable and no return required for 2025 or later. Obligations for 2022, 2023 and 2024 are unchanged, including penalties for late returns.
Other taxes for foreign owners
Separately from the VHT, Ontario charges a 25% Non-Resident Speculation Tax on purchases of residential property by foreign nationals, and Toronto adds a 10% municipal non-resident speculation tax on purchases in the city since January 1, 2025. These are one-time taxes paid on purchase, not annual taxes. See our NRST guide.
What to do
- Put the declaration window in your calendar each year, even if you live in the home.
- If you rent the home out, keep the lease and proof of rent for each year.
- If you're selling or buying a Toronto home, ask your lawyer how VHT for the current year will be handled on closing.
- Landlords: our For Landlords resources and Manage Rentals help keep lease records in one place.
Questions about a specific property? Ask Zara, Summitly's AI virtual agent, or contact the City of Toronto's VHT team for a ruling on your situation.
