Toronto extends vacant home tax declaration deadline to boost housing availability

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Toronto homeowners have been granted an additional two weeks to declare the occupancy status of their properties, as the city moves to extend the deadline for its vacant home tax declaration to March 15.

The initiative, aimed at increasing housing availability by penalizing the underuse of residential properties, targets owners leaving homes vacant for more than six months within a year.

 

Initially set for February 29, the extension comes after the City's Executive Committee noted that only 63% of residential properties had met the declaration requirement.

Toronto City Council is expected to review and decide on the proposal in its upcoming session.

 

The vacant home tax, introduced as a strategy to make more homes available in the city, imposes a 1% tax rate on the assessed value of vacant properties for the year 2023.

This means owners of properties valued at $1 million will incur a $10,000 tax.

However, starting in the 2024 tax year and onwards, the tax rate will escalate to 3%, tripling the tax imposition to $30,000 for a property of the same value, following the council's approval last October.

 

While the majority of homeowners are unlikely to be affected by the tax, all are mandated to declare their property's occupancy status.

Failure to comply results in a $21.24 fee. This move underscores Toronto's effort to discourage property vacancy and encourage the utilization of homes to alleviate the city's housing shortage.

 

Homeowners are encouraged to fulfill their declaration duties via the city's online portal, ensuring compliance and contributing to Toronto's broader initiative to enhance housing availability for its residents.