The Toronto Vacancy Tax 2023 Information 

The Toronto Vacancy Tax is a tax on certain residential properties in Toronto that are left vacant for more than six months in a year. The tax is designed to encourage property owners to rent out their units, rather than leave them vacant.

The tax rate for the Toronto Vacancy Tax is 1% of the property's value, as determined by the Municipal Property Assessment Corporation (MPAC). The tax is based on the number of days in the calendar year that a unit was vacant. For example, if a unit was vacant for 180 days in a calendar year, the owner would be required to pay a vacancy tax of 1.8% of the property's value.

To be eligible for the Toronto Vacancy Tax, a property must be classified as a "residential property" by MPAC and must be located within the City of Toronto. The tax does not apply to units that are occupied by the owner, units that are used as a primary residence by the owner, or units that are used for commercial purposes.

Property owners who are required to pay the Toronto Vacancy Tax will receive a notice from the City of Toronto outlining the amount of tax that is due. The tax is due and payable by the last day of February of the year following the calendar year in which the unit was vacant.

The Municipal Property Assessment Corporation (MPAC) is responsible for classifying properties in Toronto for the purpose of the Toronto Vacancy Tax. MPAC assigns one of the following property status declarations to each property:

Residential: A residential property is a property that is used, or is intended to be used, primarily for residential purposes. This includes single-family homes, duplexes, triplexes, and multi-unit residential buildings.

Commercial: A commercial property is a property that is used, or is intended to be used, primarily for commercial purposes. This includes office buildings, retail stores, and industrial buildings.

Farm: A farm property is a property that is used for agricultural purposes, such as growing crops or raising livestock.

Managed Forest: A managed forest property is a property that is used for forestry purposes, such as the cultivation and management of trees.

Pipe Line: A pipe line property is a property that is used for the transportation of natural gas, oil, or other substances through a pipeline.

Recreational: A recreational property is a property that is used, or is intended to be used, primarily for recreational purposes. This includes campgrounds, parks, and golf courses.

Other: If a property does not fit into any of the above categories, it will be classified as "other" by MPAC.

If you are unsure of the property status declaration assigned to your property, you can contact MPAC directly for more information.

There are several exemptions from the Toronto Vacancy Tax that may apply to certain properties. Some of the exemptions include:

Primary Residence Exemption: If a unit is used as a primary residence by the owner or their spouse, the vacancy tax does not apply.

Owner-Occupied Exemption: If a unit is occupied by the owner or their spouse, the vacancy tax does not apply.

Commercial Property Exemption: If a unit is used for commercial purposes, the vacancy tax does not apply.

Hardship Exemption: If a unit is vacant due to hardship, the owner may be eligible for a hardship exemption. Hardship is generally defined as a situation where the owner is unable to rent out the unit due to circumstances beyond their control, such as a tenant who has been evicted due to criminal activity.

Temporary Exemption: If a unit is temporarily vacant due to renovations or other circumstances, the owner may be eligible for a temporary exemption.

Student Residence Exemption: If a unit is used as a student residence and is occupied by at least one student for at least nine months of the year, the vacancy tax does not apply.

Retirement Home Exemption: If a unit is in a retirement home and is occupied by a senior for at least nine months of the year, the vacancy tax does not apply.

Caregiving Exemption: If a unit is vacant due to the owner providing caregiving services to a relative, the vacancy tax does not apply.

It's important to note that these exemptions may have certain requirements or conditions that must be met in order to qualify. If you believe that your property may be eligible for an exemption from the Toronto Vacancy Tax, you should contact the City of Toronto directly for more information.

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