Verified November 8, 2026. Checked against the City of Toronto Vacant Home Tax pages (modified November 2, 2026), the City’s November 2, 2026 news release, the Region of Peel and the Canada Revenue Agency.
Short answer: Every owner of a residential property in Toronto must declare its occupancy status to the City each year, even if you live in the home full time. The 2026 declaration period is open now, and the deadline is Friday, April 30, 2027. If you do not declare by then, the City treats the home as vacant and bills you the Vacant Home Tax, which is 3% of the property’s Current Value Assessment (CVA). Most owners declare “principal residence” or “occupied by a tenant” and pay nothing. The tax applies only to Toronto. Mississauga, Brampton and Caledon do not have one.
Who must declare
The City’s rule is simple: if you own a residential property in Toronto, you must tell the City whether it was occupied or vacant during the year. That includes people who live in the house or condo themselves. A declaration is about the calendar year, so the one you file now covers January 1 to December 31, 2026.
- One declaration per property. If you own a home and a rental condo, you file twice.
- New homes. A newly built home needs a declaration only if MPAC assessed it for that year.
- Not covered. Multi-residential buildings, commercial and industrial properties, vacant land with no structure, parking spaces and condo lockers do not need a declaration.
- Who can file. The owner, or someone authorized to act for the owner.
Participation is high. The City says more than 99% of owners completed their declaration for the 2025 calendar year. The roughly 1% who miss it are the ones who get a bill they did not expect.
The four occupancy categories
When you declare, you pick one of four categories. Three of them mean no tax.
| Category | Taxed? | What it means |
|---|---|---|
| Principal residence | No | The home was the owner’s principal residence for at least six months of the year. Long absences for work or travel are allowed. |
| Occupied by someone other than the owner | No | Tenants with written agreements of at least 30 days each, adding up to at least six months in the year, or family or friends who used it as their principal residence for at least six months. |
| Vacant with an eligible exemption | No | The home was vacant but one of the eight exemptions applies. Supporting documents are required. |
| Vacant | Yes | The home was vacant for six months or more in the year, with no exemption. |
A few situations people worry about still count as occupied, as long as the home stays the principal residence: wintering abroad, working outside Toronto or Canada for a stretch, temporary outpatient care or caring for a relative, and running a business from the home.
The 30-day rule matters for landlords. Short stays booked a few nights at a time do not count toward the six months of tenant occupancy. If you rent out part of your house, our guide to renting out a basement in Toronto covers the separate rules for a legal second unit.
How to declare
- Find your numbers. You need your customer number and either the property address or the 21-digit assessment roll number. Both are on your property tax bill.
- Choose a channel. The fastest route is the City’s online declaration portal. You can also call 311 (416-392-2489 from outside Toronto), which offers service in more than 180 languages, or go to a Tax and Utility Payment Counter at City Hall or a civic centre. The City says phone declarations are for occupied properties only.
- Pick your category and, if you claim an exemption, upload the documents it asks for.
- Keep your confirmation. Online filers get a confirmation number, and an email if they give one. Save it with your tax records.
Filing early avoids the risk of forgetting. The City sent a reminder at the halfway point last cycle, when about 80% of owners had filed.
The eight exemptions
An exemption applies only when the home was actually vacant for six months or more. Each one needs proof. The City asks owners not to send original documents, USB drives, medical records or photographs.
| Exemption | Main conditions | Proof |
|---|---|---|
| Death of a registered owner | Owner died in the tax year or the two years before. Up to three consecutive tax years. | Death certificate |
| Principal resident in care | At least six months in hospital, long-term care or supportive care in the year. Up to two consecutive years. | Signed letter from the facility and proof the home was their principal residence before care |
| Repairs or renovations | Work prevented occupancy for at least six months, permits were issued where required, and work went ahead without unnecessary delay. | Permits and related records |
| Transfer of legal ownership | Sale closed in the tax year and ownership fully passed to a new owner. Adding or removing an owner or changing a name does not count. | Land transfer deed |
| Full-time employment | Owner or spouse worked full time in Toronto for at least six months, used the home to be closer to work, and has a principal residence outside the GTA. | Proof of residence outside the GTA and an employer letter or contract for that year |
| Court order | A court order prevented anyone living there for at least six months and states the home could not be occupied, rented or sold. | Copy of the order |
| Vacant new inventory | Developer-owned new unit never occupied, still unoccupied at year end and actively listed for sale. Up to two consecutive years. | Sales listing and proof of developer status |
| Secondary residence for medical reasons | Owner, spouse or dependent needs the home for medical reasons, and the principal residence is outside the GTA. | Proof of residence outside the GTA and the City’s Vacant Home Medical Treatment Certificate Form |
The renovation exemption trips people up most. A long gut job with no permits, or a project that sat idle for months, may not qualify. If your work needs permits, get them before you start and keep the inspection records.
What the tax costs if you are billed
The Vacant Home Tax is 3% of the property’s CVA, the value on your MPAC assessment notice. The rate was 1% when the tax started and rose to 3% starting with the 2024 tax year. It is a separate charge on top of regular property tax. Our GTA property tax rates guide explains how the regular bill is worked out.
| Current Value Assessment | Vacant Home Tax for the year |
|---|---|
| $500,000 | $15,000 |
| $750,000 | $22,500 |
| $1,000,000 | $30,000 |
| $1,500,000 | $45,000 |
Quick estimate: enter your CVA from your MPAC notice.
Vacant Home Tax if billed: $0
For the 2025 tax, the City set three equal instalments: September 15, October 15 and November 16, 2026. Late payments get a 1.25% penalty on the first day they are overdue, then 1.25% interest on the first day of each month after that. Unpaid Vacant Home Tax is added to the property tax account and collected the same way. If you pay regular property tax in instalments, our guide to GTA property tax due dates and payment plans covers those dates.
Disputes, audits and fines
If you get a bill you think is wrong
You can file a complaint if the home was occupied or exempt, if you want to change your declaration, or if the assessment changed. For the 2025 Vacant Home Tax, the deadline to dispute the bill is December 31, 2026. If the City issues a supplementary bill after an audit, you have 90 days from the date on the bill to file a notice of complaint.
If you disagree with the decision on your complaint, you can appeal within 90 days of the decision. Appeals are heard in writing by the Deputy Treasurer, acting as the Appellate Authority. The City says the hearing is scheduled within 90 days of receiving the appeal, the decision letter follows within 30 days, and that decision is final.
Audits
Any declaration can be selected for audit. If the City asks for more documents, you have 60 days from the date of its letter to respond. Documents must relate to the year under review, and the City does not accept photographs as evidence. Keep your records for at least three years.
Fines
Making a false declaration, or failing to provide information the City requests, can lead to a fine of up to $10,000 plus any Vacant Home Tax owing. Missing the deadline is treated differently: the City deems the home vacant and issues a tax bill.
If a family member or tenant lives in a home you own, get the paperwork in place now: a written lease of 30 days or more for tenants, or proof that your relative uses the address as their principal residence.
Buying or selling a Toronto home
The City says both the buyer and the seller are responsible for making sure a declaration is filed, and the seller should give the buyer a copy. Who files depends on the timing.
- Sale closes in the year being declared (for example, a 2026 declaration and a 2026 closing). Either the buyer or the seller can file the declaration or a complaint, and the home qualifies for the transfer of ownership exemption.
- Sale closes after the year being declared (for example, a 2026 declaration and a closing in early 2027). The seller must file the declaration and can file a complaint.
If nobody declares, the home is considered vacant, the tax is charged, and the City says the new owner is responsible for any charges from the previous owner. For a sale closing between now and April 30, 2027, ask your lawyer to confirm the 2026 declaration has been filed and to get a copy of the confirmation. Power of sale is not an exemption, and buyers of those homes take on outstanding taxes.
Closing costs add up quickly, so it helps to know the full list before you make an offer. See how much cash you need to close on an $800,000 home in Ontario. Buying in the city? Start your home search with Local Toronto, or browse our Toronto real estate guide. Selling? Get a free home evaluation.
Outside Toronto: Peel and the federal tax
Mississauga, Brampton and Caledon. There is no vacant home tax in Peel. The Region of Peel studied one, but on July 6, 2023 Regional Council paused that work, including its request to the province for the authority to bring one in. The Region tied the pause to the provincial law that set out to dissolve Peel Region. The 1% rate that appeared in Peel's materials was a proposal and was never charged.
The federal Underused Housing Tax. This is a separate annual federal tax on certain owners of residential property, filed with the Canada Revenue Agency. Budget 2025 proposed eliminating it for the 2025 calendar year onward, so no tax would be payable and no return required for 2025 and later years. As of the CRA's January 2026 update, that change was in Bill C-15 and had not yet received Royal Assent. The 2022, 2023 and 2024 filing and payment rules still apply. Check the CRA's current guidance if this affects you. None of this changes Toronto's municipal declaration.
FAQ
Do I have to declare if I live in my Toronto home?
Yes. Every owner of a residential property in Toronto must declare its occupancy status each year, including owners who live there full time. You declare it as your principal residence and pay no Vacant Home Tax.
When is the 2026 Vacant Home Tax declaration deadline?
Friday, April 30, 2027. The declaration covers the 2026 calendar year, January 1 to December 31, 2026.
What happens if I miss the deadline?
The City treats the home as vacant and issues a Vacant Home Tax bill at 3% of the property's Current Value Assessment. You can then file a complaint if the home was actually occupied or exempt.
How much is Toronto's Vacant Home Tax?
Three per cent of the property's Current Value Assessment, the rate in place since the 2024 tax year. On a CVA of $1,000,000, that is $30,000 for the year.
Does renting out my condo count as occupied?
Yes, if tenants had written agreements of at least 30 days each and occupied it for a total of at least six months in the year. Short stays of a few nights do not count toward that total.
Is there a vacant home tax in Mississauga or Brampton?
No. The Region of Peel paused its vacant home tax work on July 6, 2023, and no tax is charged in Mississauga, Brampton or Caledon.
Sources
- City of Toronto, Vacant Home Tax (modified November 2, 2026).
- City of Toronto, Vacant Home Tax declaration of occupancy status and Complaint, Appeal and Audit.
- City of Toronto, news release, November 2, 2026, and reminder release, February 2, 2026.
- Region of Peel, Vacant Home Tax in Peel: on hold.
- Canada Revenue Agency, Excise and GST/HST News No. 121 (January 15, 2026).
Images: AI-generated illustrations created for this guide. They do not show real properties.
This article is general information about the City of Toronto Vacant Home Tax as published in November 2026. Rules and dates can change. It is not legal or tax advice. Confirm your situation with the City of Toronto or a tax professional.
Local Toronto, HomeLife Landmark Realty Inc., Brokerage.