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ARTICLE · 13 JANUARY 2023

Toronto's New Vacant Home Tax: A Brief Introduction

Gardiner Roberts LLP
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The City of Toronto has implemented a new annual tax on vacant residences, payable beginning in 2023.

CanadaTax
Ian Spiegel
Ian Spiegel
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The City of Toronto has implemented a new annual tax on vacant residences, payable beginning in 2023.1 A Vacant Home Tax of 1% of the current value assessment will be imposed on all Toronto residences that are declared, deemed or determined vacant for more than six months during the previous year. The tax is based on the property's occupancy status for the previous year. For example, if the home was vacant in 2022, the tax will become payable in 2023.

The stated goal of the City of Toronto's Vacant Home Tax is to increase the supply of housing by discouraging owners from leaving their residential properties unoccupied. Homeowners who choose to keep their properties vacant will be subject to this tax.2

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