Vacant Home Tax
The City of Toronto has implemented an annual tax to be levied on Toronto residences that were unoccupied for a total of six months or more during the previous calendar year. The first calendar year in which this rule applies is 2022, with the tax payable in 2023. Owners of properties that are vacant for more than six months during the calendar year will be liable to pay a tax equal to 1 per cent of the current assessed value of the home. There are certain deeming rules and exemptions that could apply. All Toronto resident property owners are required to submit a declaration of their property’s 2022 occupancy status by February 2, 2023, regardless of whether the property was occupied or unoccupied during the year.
The City of Vancouver implemented a similar Empty Homes Tax in 2019. In 2022, the tax is 3 per cent of the property’s assessed value. For 2023, the City of Vancouver has increased the Empty Homes Tax to 5 per cent of the assessed taxable value. The declaration due date for 2022 is February 2, 2023. Any tax owing for 2022 is due by April 14, 2023.
The province of British Columbia also has a separate annual speculation and vacancy tax. The annual tax could be up to 2 per cent of the assessed value of the residential property located in certain areas within the province.
In addition to the above, other Canadian cities, such as Ottawa and Hamilton, have implemented a similar vacancy tax.