Vacant Home Tax
Beginning in 2023, the City of Toronto will levy a tax on vacant and underused homes. The following criteria will apply when calculating eligibility for the new tax:- Homes must have been used as the principle residence by the owner or the permitted occument, or occupied by tenants for at least six months, in order to not be considered vacant.
- Occupancy status must be declared yearly
- The exact value of the levy may vary from year to year, but will always be a percentage of the Current Value Assessment (CVA)
Exemptions:
- Death of a registered owner
- Repairs or renovations
- Principal resident is in care
- Transfer of legal ownership
- Occupancy for full-time employment
- Court order
Implications for Buyers and Sellers:
- Purchasers and vendors must make appropriate arrangements themselves
- Any unpaid taxes become the responsibility of the purchases
- For closings occurring between February 3rd and December 31st, the purchaser qualifies for the "transfer of legal ownership exemption and must file the following year.
Underused Housing Tax Act
In effect since January 1, 2022, the Underused Housing Tax Act imposed a levy on unused or underused homes. Some key points:- In contrast to the Vacant Home Tax, the Act has been implemented across Canada
- It applies to properties owned by non-resident, non-Canadian individuals. However, many Canadian homeowners may find themselves affected
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