Help your clients navigate Toronto’s Vacant Home Tax (VHT) with this no-stress, detailed guide designed to prevent fines and ensure compliance. As professionals in the real estate and mortgage industry, you know that keeping clients informed is key—especially when it comes to turning potentially vacant properties into income-generating assets.
TL;DR Cheat Sheet for Your Clients:
• Declaration Deadline: Clients must declare their 2024 occupancy status by April 30, 2025—even if the property is occupied.
• Check for Exemptions: Valid exemptions include situations like death, major renovations, medical care, or newly built homes.
• Payment Breakdown: If taxed, payments are due in three installments (September, October, and November 2025).
Why It Matters:
Toronto’s Vacant Home Tax is designed to transform empty properties into living spaces, charging 3% of a home’s assessed value if it remains vacant for six months or more without an exemption. As agents and brokers, advising your clients to declare their property status—even if occupied—can save them from hefty fines and interest charges while contributing to affordable housing initiatives.
How to Guide Your Clients:
- Online Declaration: Direct clients to use the City of Toronto’s easy-to-use portal—it takes just a few minutes.
- Phone Option: Remind them they can call 311 (or 416-392-2489 if outside Toronto); the service is available in 180 languages.
- In-Person Support: Encourage visits to City Hall or a local Civic Centre, especially if they prefer face-to-face assistance.
Note: Your clients will need their customer number plus the address or 21-digit assessment roll number from their property tax bill, property tax account statement or Vacant Home Tax notice.
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Important Details to Share:
• Even if the property is used as a primary residence, rented out for six months, or occupied by family/friends, a declaration is still required.
• Clients should have on hand their customer number and either the property address or the 21-digit assessment roll number from their tax documents.
• For those with valid exemptions—such as cases of owner death (with documentation), major renovations (with permits), or extended medical care—proper paperwork is essential to avoid the tax.
• Failure to declare results in the property being deemed vacant, incurring the 3% tax bill, fines (up to $10,000 for false declarations), and monthly interest charges of 1.25%.
For Real Estate Agents & Mortgage Brokers:
When advising clients about buying or selling, remind sellers to confirm and declare their property’s occupancy status before closing, and encourage buyers to verify the VHT status to avoid inheriting any unpaid tax liabilities. By staying proactive, you can help clients avoid unnecessary penalties and secure smoother transactions.
Use this guide as a conversation starter with your clients, and position yourself as the knowledgeable expert who can help them turn compliance into a competitive advantage in Toronto’s real estate market.
Hey Toronto homeowners! Let’s talk about something slightly less fun than patio season but way more important: the Vacant Home Tax (VHT). Think of it as the city’s way of gently nudging vacant properties back into the housing market (and yes, you have to declare—even if your home is occupied). Here’s the lowdown:
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