The deadline for homeowners to file a declaration regarding the Toronto Vacant Home Tax (VHT) is fast approaching. Many homeowners may have forgotten this year’s declaration is due by February 29, 2024, while others are not aware it is an annual requirement, even for a principal residence (i.e. even if NOT VACANT).
Interesting statistics from last year:
- Last year’s filings (in 2023 for the 2022 tax year), 2,336 owners declared their homes as vacant.
- Additionally, the city deemed 44,902 homes as vacant because no declaration was made.
- Once all late declarations were filed, the above number was reduced to 17,437 vacant homes.
- The city collected about $54 million in its first year of implementation. The funds are slated for affordable housing initiatives.
Consequences for late submissions:
- The municipality charges a late filing fee of $21.24
- There is also a fine of $250 that may be applied
- Most concerning is if a homeowner does not file a declaration, the city deems the property vacant by default and imposes a lien of 1% of the home’s assessed value (On a $1million home, that is $10,000).
- False declarations of occupancy status or failure to provide information when requested may result in a fine of up to $10,000, in addition to payment of the tax.
- For those who owe the tax and pay late, Interest charges will apply to any overdue amount at a rate of 1.25% each month for as long as taxes or charges remain unpaid.
Vacant Home Tax Increase:
The VHT will increase from 1% to 3% of a home’s assessed value for the 2024 taxation year.
Click on the link below to access the online declaration form.