Two Toronto taxes that catch Etobicoke owners out. The Vacant Home Tax is 3% of your property’s Current Value Assessment, and every residential owner must file a declaration annually — the deadline for the 2025 year was April 30, 2026, and if you do not declare, the City assumes your home was vacant and bills you. Payment for 2025 is in three instalments on September 15, October 15 and November 16, 2026. Separately, City Council approved graduated Municipal Land Transfer Tax rates on high-value homes containing one or two single-family residences, effective April 1, 2026 — properties over $3 million pay more, rising to a total of 8.6% at the very top of the market. Etobicoke is fully within Toronto, so both apply here.
These two taxes cause more unpleasant surprises among Etobicoke owners than anything else I deal with, and for opposite reasons.
The Vacant Home Tax catches people because it requires an annual declaration from everyone, including owners who live in their home full time. It is not a tax you only deal with if your property is empty — it is a filing obligation that applies to every residential property in Toronto. Miss it and you are deemed vacant and billed.
The Municipal Land Transfer Tax catches people because they forget Etobicoke is Toronto and budget only for the provincial tax. And as of April 2026 there is a new graduated structure at the top of the market that changes the numbers on higher-value homes — relevant across The Kingsway, Thorncrest and parts of Princess-Rosethorn.
Both are entirely avoidable problems if you know about them in advance.
1The Vacant Home Tax: 3%, and everyone must declare
Toronto’s Vacant Home Tax applies to residential properties that are vacant for more than six months in a calendar year. The rate is 3% of the property’s Current Value Assessment — the MPAC assessed value, not the market price.
The part that catches people
Every residential property owner in Toronto must file a declaration every year, whether the property is occupied or not. Living in your own home does not exempt you from declaring — it exempts you from the tax, but only if you declare.
For the 2025 taxation year the declaration period opened November 1, 2025 and closed April 30, 2026 — a six-month window.
What happens if you miss it
If the City does not receive your declaration by the deadline, it assumes the property was vacant and issues a Notice of Assessment — a Vacant Home Tax bill. You then have to go through a dispute process to have it reversed.
At 3% of assessed value this is not a small number. On a property assessed at $900,000 that is $27,000.
Payment timing
Vacant Home Tax for the 2025 year is payable in three instalments: September 15, October 15 and November 16, 2026.
Who this catches most often
In my experience: estates going through probate, owners doing long renovations, snowbirds, owners with a property between tenants, and anyone who moved and did not update their mailing address with the City — because the reminder went to the old address.
Set a recurring calendar reminder for every February. That is the entire solution.
The bottom line: Declaring is mandatory for every owner every year, and the penalty for silence is being deemed vacant and taxed 3% of assessed value. Put it in your calendar.
2Exemptions — and why you still have to declare
The Vacant Home Tax has defined exemptions covering circumstances where a property is legitimately empty.
The categories
Exemption categories have historically included situations such as the death of the registered owner, a property undergoing repairs or renovations where occupation is prevented and permits are in place, the owner being in care, a court order prohibiting occupancy, and a transfer of legal ownership during the year.
The specific list, the conditions attached to each, and the documentation required change. Confirm the current exemptions directly on the City of Toronto Vacant Home Tax page before relying on any of them, including this description.
The critical point
An exemption is claimed on the declaration. It is not automatic. If you are exempt but do not declare, you are treated the same as someone who did not declare at all — deemed vacant and billed.
The renovation exemption in particular tends to require that permits are in place and that the work genuinely prevents occupancy. A cosmetic refresh is unlikely to qualify.
If you get a bill you think is wrong
There is a formal process to dispute a Notice of Assessment, with deadlines. Do not ignore the notice and do not simply refuse to pay — engage the process promptly and keep your documentation. If the amount is significant, get professional advice.
The bottom line: Exemptions must be claimed on the declaration, with documentation. Being exempt and staying silent produces exactly the same bill as being vacant.
3Municipal Land Transfer Tax — and the new 2026 high-value rates
When you buy in Etobicoke you pay two land transfer taxes: the provincial Ontario Land Transfer Tax and the City of Toronto Municipal Land Transfer Tax. This is the closing cost buyers most often under-budget, because they think of Etobicoke as separate from Toronto. It is not — amalgamation was in 1998.
What changed in 2026
On December 17, 2025, City Council approved an amendment introducing graduated Municipal Land Transfer Tax rates for high-value residential properties containing one or two single-family residences. The new rates took effect April 1, 2026.
The increase applies to homes selling above $3 million, and steps up through the value bands. At the very top — properties above $20 million — the change is roughly 1.10 percentage points, bringing the total to 8.6%.
Who this actually affects in Etobicoke
The $3 million threshold is above most of the borough, but it is squarely relevant in The Kingsway, Thorncrest Village, parts of Princess-Rosethorn and Edenbridge–Humber Valley — and it is directly relevant to anyone building a custom home there, since a completed high-end build can land in the affected bands.
Note the wording: properties containing one or two single-family residences. Condominium apartments and multi-unit properties are treated differently. Confirm your specific situation.
First-time buyer rebates
Both the provincial and Toronto land transfer taxes have first-time buyer rebates with their own eligibility rules and maximum amounts. They are separate programmes and you may qualify for both. Confirm current amounts and eligibility with your lawyer before closing.
The bottom line: Etobicoke pays both land transfer taxes. Since April 1, 2026, homes over $3 million face graduated MLTT rates reaching 8.6% at the very top — which matters in The Kingsway, Thorncrest and for custom builds.
4What this means if you own, buy, sell or build in Etobicoke
If you own
Set a recurring February calendar reminder to file the declaration. Keep your mailing address current with the City. If you are away for an extended period, arrange for someone to handle it — the obligation does not pause because you are travelling.
If you are buying
Budget both land transfer taxes. On a typical Etobicoke purchase the Toronto municipal tax roughly doubles your land transfer cost versus a purchase in Mississauga or Vaughan. Also ask your lawyer to confirm the Vacant Home Tax status of the property — an outstanding VHT amount can become a lien issue, and you do not want to inherit it.
If you are selling
Ensure your declarations are up to date and any assessed amount is settled. An unresolved Vacant Home Tax matter surfacing during a transaction creates delay at the worst possible time.
If you are administering an estate
This is the highest-risk group. A property sitting empty through probate is exactly the fact pattern the tax targets, and the person who used to open the mail has died. Deal with the declaration early, understand which exemption applies, and get documentation in order.
If you are building or renovating
A long custom build or gut renovation means an empty property, potentially across multiple declaration years. Understand the renovation exemption conditions — permits in place, occupation genuinely prevented — before you assume it covers you.
The bottom line: Estates and long renovations are where these taxes cause the most damage, because the property is genuinely empty and nobody is watching the deadline.
Toronto tax obligations at a glance
| Vacant Home Tax | Municipal Land Transfer Tax | |
|---|---|---|
| Who pays | Owners of vacant residential property | Buyers of Toronto property |
| Rate | 3% of Current Value Assessment | Graduated; higher above $3M since Apr 1, 2026; to 8.6% at top |
| Annual filing? | Yes — every owner, every year | No — paid at closing |
| 2025-year deadline | April 30, 2026 (opened Nov 1, 2025) | — |
| Payment | 3 instalments: Sept 15, Oct 15, Nov 16, 2026 | On closing |
| If you do nothing | Deemed vacant and billed | Cannot close |
| Applies in Etobicoke? | Yes | Yes |
Selling, buying or settling an estate in Etobicoke?
I will walk you through the closing costs that actually apply — both land transfer taxes, any Vacant Home Tax exposure, and what you net at the end. Estates and long-empty properties especially: get ahead of this rather than discovering it mid-transaction.
Talk to JatinFree home valuationNet proceeds calculatorConfidential. Reviewed personally and answered within 24 hours. I never share, sell or distribute your information.
Frequently asked questions
What is the Toronto Vacant Home Tax rate?
The rate is 3% of the property’s Current Value Assessment — the MPAC assessed value rather than the market price. It applies to residential properties that are vacant for more than six months in a calendar year. On a property assessed at $900,000 that is $27,000, so the consequences of being incorrectly deemed vacant are substantial.
When is the Toronto Vacant Home Tax declaration deadline?
For the 2025 taxation year the declaration period opened November 1, 2025 and the deadline was April 30, 2026. Every residential property owner in Toronto must declare every year, including owners who live in their home full time. If the City does not receive a declaration by the deadline it assumes the property was vacant and issues a Notice of Assessment. Payment for the 2025 year is due in three instalments on September 15, October 15 and November 16, 2026. Confirm each year’s dates with the City of Toronto, as they can change.
Do I have to declare if I live in my home full time?
Yes. The declaration is mandatory for every residential property owner in Toronto regardless of occupancy. Living in your home exempts you from paying the tax, but only if you file the declaration saying so. Owners who are exempt but do not declare are treated the same as owners who did not declare at all — the property is deemed vacant and a bill is issued, which then has to be disputed.
Does the Vacant Home Tax apply in Etobicoke?
Yes. Etobicoke amalgamated into the City of Toronto in 1998 and is fully subject to Toronto by-laws and taxes, including the Vacant Home Tax and the Municipal Land Transfer Tax. Buyers who assume Etobicoke is outside Toronto for tax purposes routinely under-budget their closing costs by a significant amount.
What are the new Toronto land transfer tax rates for 2026?
On December 17, 2025 Toronto City Council approved graduated Municipal Land Transfer Tax rates for high-value residential properties containing one or two single-family residences, effective April 1, 2026. The increases apply to properties selling above $3 million and step up through the value bands, with properties above $20 million seeing a change of roughly 1.10 percentage points to a total of 8.6%. In Etobicoke this is most relevant in The Kingsway, Thorncrest Village and parts of Princess-Rosethorn and Edenbridge–Humber Valley, and for high-end custom builds. Confirm the applicable rate for your specific price and property type with your real estate lawyer.
What are the exemptions from the Toronto Vacant Home Tax?
Exemption categories have historically included the death of the registered owner, repairs or renovations where permits are in place and occupation is genuinely prevented, the owner being in care, a court order prohibiting occupancy, and a transfer of legal ownership during the year. The specific list, conditions and documentation requirements change, so confirm the current exemptions directly with the City of Toronto. Critically, an exemption must be claimed on the annual declaration — it is never automatic, and failing to declare produces the same outcome as being vacant.
The City of Toronto Vacant Home Tax is charged at 3% of a property’s Current Value Assessment and applies to residential properties vacant more than six months in a calendar year. Every residential property owner in Toronto, including Etobicoke, must file a declaration annually regardless of occupancy; for the 2025 taxation year the declaration period opened November 1, 2025 and closed April 30, 2026, with payment due in three instalments on September 15, October 15 and November 16, 2026. If no declaration is received the City assumes the property was vacant and issues a Notice of Assessment. Exemptions exist, including for death of the registered owner and for renovations where permits are in place and occupation is prevented, but they must be claimed on the declaration and are never automatic. Separately, Toronto City Council approved on December 17, 2025 graduated Municipal Land Transfer Tax rates for high-value residential properties containing one or two single-family residences, effective April 1, 2026, applying to properties above $3 million and rising to a total of 8.6% for properties above $20 million. Etobicoke amalgamated into the City of Toronto in 1998 and both taxes apply there, meaning buyers pay both the provincial Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax.
Sources and further reading
City of Toronto — Vacant Home Tax programme information, declaration periods, rate and payment schedule · City of Toronto — Municipal Land Transfer Tax and Municipal Non-Resident Speculation Tax · Toronto City Council decision of December 17, 2025 introducing graduated MLTT rates for high-value residential properties effective April 1, 2026 · CBC News reporting on the approved land transfer tax increase · Teraview notice on new City of Toronto MLTT high-value residential property tax rates · Province of Ontario Land Transfer Tax. Rates, deadlines and exemptions change annually — verify with the City of Toronto before relying on any figure here.
General information prepared August 2026. This is not tax or legal advice. Vacant Home Tax rates, declaration deadlines, payment schedules, exemption categories and documentation requirements are set by the City of Toronto and change — verify current requirements directly at toronto.ca before filing or relying on an exemption. Municipal and provincial land transfer tax rates, thresholds, property-type definitions and first-time buyer rebate amounts also change and are transaction-specific; confirm the amount payable for your particular purchase with your real estate lawyer before closing. If you receive a Notice of Assessment you believe is incorrect, engage the City’s dispute process promptly and consider professional advice. Jatin Dua is a Realtor with RE/MAX Quantum Realty and is not a lawyer, accountant or tax advisor.