Vacant home tax (Toronto / Ottawa)
Toronto and Ottawa charge an annual vacant home tax on residential properties left unoccupied. Toronto's rate climbed to 3% of CVA; Ottawa's is 1%.
Your scenario
Result
Owner-occupied homes, tenanted homes, and a few exemptions (snowbird, repairs, etc.) skip the tax with an annual declaration.
Toronto Vacant Home Tax
Toronto's Vacant Home Tax (VHT) applies to residential properties that have been unoccupied for more than 6 months in the prior calendar year. The rate climbed from 1% to 3% of CVA (Current Value Assessment) for the 2024 tax year, making it one of the most aggressive vacant-property taxes in Canada.
Ottawa Vacant Unit Tax
Ottawa charges 1% of CVA on vacant residential units following Toronto's model. Same 6-month occupancy threshold, similar exemption structure. The declaration is mandatory every year for every residential property — even if you live there.
Common exemptions (annual declaration required)
- Principal residence: your full-time home — most homeowners declare this and pay $0
- Tenanted property: rented for 6+ months in the prior year with a written lease
- Snowbird / seasonal absence: owner spends winters elsewhere but the home is otherwise their principal residence — usually no tax
- Active renovation / repairs requiring vacancy with building permits in place
- Death of owner: estate has a grace period
- Owner moved to care facility: long-term care exemption
- Court order or transfer of legal ownership: short-term vacancy during transfer
- New construction: properties that haven't had a first occupancy yet
The declaration matters more than the tax
Even if your property is fully occupied, you must file an annual declaration. Missing the declaration deadline triggers the maximum tax automatically — even on owner-occupied homes. Deadlines are typically early in the year (Toronto: end of February; Ottawa: March deadline) for the prior calendar year.
What counts as “vacant”
- Unoccupied for 6+ months in the calendar year without an applicable exemption
- Both Toronto and Ottawa count days throughout the year — not consecutively
- Multiple short occupancies (e.g., Airbnb stays without a long-term tenant) typically still count as vacant
- Properties owned by non-residents face additional scrutiny under the BC Speculation Tax and Federal Underused Housing Tax — see related calcs
How it interacts with other vacancy taxes
Toronto homeowners can be exposed to BOTH the city VHT (3% of CVA) AND the federal Underused Housing Tax (1% — see UHT calc) if owned by a non-Canadian. BC residents face the BC Speculation and Vacancy Tax (SVT calc) on top of any municipal VHT. The taxes stack — they don't replace each other.
Worked example
$1,000,000 CVA Toronto home left vacant 12 months in 2024:
- Toronto VHT: $1,000,000 × 3% = $30,000
- If owned by non-Canadian: federal UHT also applies at 1% = $10,000
- If owned by foreign-controlled entity: 35% NRST may apply on the next transaction
- Total potential annual tax: $40,000 on top of regular property tax