Toronto Introduces Changes to Vacant Home Tax

Toronto city council is revamping its vacant home tax program in an effort to avoid another taxation tragedy.

Property owners will now have a longer time to declare occupancy, from Nov. 1 to April 30, up from Feb. 29 to April 30, and be able to do so through a more user-friendly online portal.

The city is also introducing a dedicated customer care centre, enabling homeowners to declare by phone through 311, with support available in 180 languages. There will be an option to submit declarations in person at tax and utility counters located at Toronto City Hall and the civic centres, too.

Property owners can provide their e-mail to receive a confirmation of their declaration by e-mail. If no e-mail address is provided during the online declaration, they can print or save the confirmation page, which now includes a confirmation number. Those declaring by phone will also receive a confirmation number. Property owners who declare by phone or those without access to a printer can call 311 to request a printed confirmation, which will be mailed to them.

City staff said the late declaration fee remains waived for now, though it may be reinstated in future years, as the city further evaluates the success of the program redesign.

In April, more than 160,000 Toronto homeowners received notice they owed thousands of dollars because their properties had been deemed vacant by the city, even though many of them were very much occupied. After strong backlash from residents about the program’s disastrous rollout, the city backtracked on more than 100,000 charges from the 2023 taxation year.

The vacant home tax was first introduced in 2022, to encourage homeowners to sell or rent their unoccupied residence instead of letting it sit empty, thereby creating more opportunities for affordable housing.