So, Your Toronto Abode Took a Vacation? Brace Yourself for the Vacant Home Tax!
Living the dream, eh? Owning a piece of paradise in Toronto! But hold on there, jetsetter. What happens when your pied-�-terre decides to take a year-long sabbatical while you gallivant around the globe? That's where the dreaded Vacant Home Tax (VHT) comes in, folks, and it can hit your wallet harder than a rogue Tim Hortons hockey puck.
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| How Much Is Vacant Home Tax Toronto |
The Great Canadian Empty House Heist: How Much Booty Does the VHT Steal?
For 2022 and 2023, the VHT wasn't playing around, but it was kind of like a polite Canadian mugging. It chilled at a 1% rate of the home's current value assessment (CVA). Imagine! A million-dollar condo only setting you back a measly ten thousand bucks for leaving it empty. Peanuts, right?
But hold onto your maple syrup, because as of 2024, things got serious. The VHT went full-on hockey brawl, jumping to a whopping 3% of the CVA for any Toronto residence that sits vacant for more than six months of the previous year. That's a potential $30,000 tax bill on your million-dollar mansion! Enough to make even Drake shed a tear (or two, depending on the song).
Here's the bottom line: Leaving your Toronto home empty for too long can be a real drag on your bank account. Unless you're rolling in loonies like Scrooge McDuck, it might be time to consider renting out your place or selling it to someone who'll actually live there.
Tip: Use this post as a starting point for exploration.
Exemptions: Dodging the Vacant Home Tax Bullet
Now, before you pack your bags and head for the nearest Tim Hortons for a vat of coffee and a crisis meeting, there are some exemptions:
- Principal residence: If it's your main squeeze (your primary residence, that is), you're good to go. Even if you're snowbirding in Florida for half the year, it's exempt.
- Permitted occupant or tenant: Got a loyal roommate or a tenant who pays the rent on time? High fives all around! The place is exempt as long as it's occupied for more than six months.
- Other exemptions: There are a few other reasons your home might be exempt, like major renovations or if it's being used for palliative care. Check the City of Toronto website for the full scoop [link to City of Toronto Vacant Home Tax webpage].
Vacant Home Tax Toronto: FAQ
How to avoid the Vacant Home Tax in Toronto?
Make sure your property is occupied for more than six months a year by yourself, a tenant, or a permitted occupant.
Tip: Be mindful — one idea at a time.
How much is the Vacant Home Tax in Toronto?
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For 2024 and beyond, it's a hefty 3% of the Current Value Assessment (CVA) of your property if it's vacant for more than six months.
How do I declare the occupancy status of my Toronto property?
QuickTip: Stop scrolling, read carefully here.
The City of Toronto's online portal is the best way to submit a declaration [link to City of Toronto Vacant Home Tax webpage].
How long do I have to declare the occupancy status of my Toronto property?
There's usually a deadline in February of each year. Check the City of Toronto website for the latest information [link to City of Toronto Vacant Home Tax webpage].
Reminder: Take a short break if the post feels long.
What are some of the exemptions for the Vacant Home Tax in Toronto?
It applies to principal residences, properties with permitted occupants or tenants, and properties undergoing major renovations or used for palliative care. There might be other exemptions, so check the City of Toronto website for the full details [link to City of Toronto Vacant Home Tax webpage].
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