Stay informed about vacant home taxes in Canada for 2024 with this comprehensive guide. Understand the concept of vacant taxes, which aim to address housing affordability and encourage property occupancy. Properties are considered vacant if they remain unoccupied for defined periods, subject to specific criteria set by local regulations. Exemptions exist for certain properties or circumstances outlined by authorities. Utilize vacant home tax calculators to estimate potential taxes owed based on property status and regulations. Awareness of late declarations, fees, fines, and penalties is crucial to avoid additional charges. Explore various payment methods and deadlines for vacant home taxes to ensure compliance. Emphasize the importance of staying informed to avoid penalties and maintain financial responsibility as a property owner in Canada. #VacantHomeTax #PropertyTax #HousingAffordability #TaxCompliance #RealEstateCanada #FinancialResponsibility

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Real Estate and Taxes with
Lakshay

2. By: Lakshay Gandhi CPA, CGA
647-987-4025
Support@accountingops.ca

3. What’s Vacant tax?
For the 2022 and 2023 taxation years, a Vacant Home Tax of 1% of the Current Value
Assessment (CVA) will be levied on all Toronto residences that are vacant for more
than 6 months
Toronto’s vacant home tax was brought in at the end of 2021 to try and push
investors to either sell empty homes or put them on the rental market.
Torontonians owning a residential property are required to declare the occupancy
status of their property every year, even if they reside in there by Feb 29.
However, the tax does not apply to:
•properties that are the principal residence of the owner
•properties that are the principal residence of a permitted occupant or occupied by a tenant (including
business tenants)
•properties that qualify for an exemption

4. Property is
considered
Vacant if
• the property was not the
principal residence of the owner
or any permitted occupants or
was not occupied by tenants for
a total of six months or more
during the calendar year
• the property was not eligible
for an exemption
• the property was deemed vacant
because the owner failed to
submit a declaration of
occupancy status or any required
supporting documentation

5. You do not have to declare
if:
• your property is not yet
assessed
• the property is classed as
multi-residential, commercial or
industrial
• the property is classified by
MPAC as vacant land, parking
space or a condominium locker

6. Vacant home tax
calculation
• For example, if CVA = $1,000,000, the taxes
• = $10,000 (1% x $1,000,000).
• For 2024 and future taxation years its 3% if property is vacant for
more than 6 months during the previous year.
• For example, if the CVA = $1,000,000, the tax amount =
$30,000 (3% x $1,000,000).
• The tax is based on the property’s occupancy status and CVA for
the previous year. For example, if the home is vacant in 2023 the
tax will be calculated using the 2023 CVA and will become payable
in 2024.

7. Who is exempt?
• Death of a registered owner
• Repairs or renovations
• Court order
• Principal resident is in care
• Vacant new inventory (Builder)

8. Late
Declarations,
fees, fines and
Penalties
• Failure to declare or making a false
declaration may result in a fine of
$250 to $10,000.
• If no declaration is submitted =
assumed to be vacant
• Fee of $21.24 will be charged for
failing to submit a declation of
occupancy status
• Interest of 1.25% will be charged on
outstanding VHT (+1.25 per additional
month)

9. How to pay
• Due in 3 equal instalment amounts on the due
dates of
• May 15
• June 17
• July 15
• Can be paid via Financial institutions,
Mail-in Payment or “MyToronto Pay” service.

10. Conclusion
• Vaughan, Markham and York Regions have decided to
halt plants to more forward with a vacant home tax
in 2024.
• As of October 2023, $54 million in VHT (Vacant
Home Tax) is collected. In 2024 the projected
revenue is going to almost double to $105-110
million as projections from the Toronto City
Council.
• Vancouver and B.C has vacant home tax of 5.5% in
2023 (compared with 3% in 2021-2022)
• Underused Housing Tax – federally
• 1% tax on ownership of vacant or underused
housing in Canada
• Impacts non residents and foreign nationals
• Deadline is Apr 30, 2024

11. Thanks for
listening
• Lakshay Gandhi CPA, CGA
• 647-987-4025
• Support@accountingops.c
a
• Subscribe to my YouTube
channel – Real estate
and Taxes with Lakshay