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Get My Free Estimate →Yes — a purchaser can be left liable. The City of Toronto states plainly that where no declaration of occupancy status has been made, “the Vacant Home Tax forms a lien on the property, and the purchaser will be held responsible for the payment of the tax.” The tax is three per cent of Current Value Assessment. For the 2025 taxation year, payment is due in three instalments on 15 September, 15 October and 16 November 2026, and the deadline to dispute a 2025 bill is 31 December 2026. Where a sale closes after the taxation year, the City says the vendor must submit the declaration.
The Toronto Vacant Home Tax is three per cent of a property’s assessed value, it is charged when a declaration is not filed as much as when a home is genuinely empty, and it forms a lien on the property. That last part is why this page exists. If a seller does not declare, the City looks to whoever owns the property when it comes time to collect — and that may be you.
What the City says about purchasers
From the City of Toronto’s own change-of-ownership guidance, quoted directly:
- “The Vacant Home Tax has implications for property transactions, both for purchasers and vendors.”
- “It is the responsibility of purchasers and vendors to make appropriate arrangements to ensure that the declaration of occupancy status has been submitted.”
- “Vendors should provide a copy of the completed and filed declaration of occupancy status to the purchaser.”
- “The Vacant Home Tax forms a lien on the property, and the purchaser will be held responsible for the payment of the tax.”
Read that last one twice. It is not framed as a risk or a possibility. Where no declaration has been made, the tax attaches to the property and the person who owns it pays. A buyer who closes without confirming the declaration inherits the problem.
Who declares, and when
| Situation | Who submits the declaration | Source |
|---|---|---|
| Sale closes within the taxation year | Either the vendor or the purchaser can submit it. | City of Toronto |
| Sale closes after the taxation year | The vendor must submit it — only the vendor knows the occupancy status for that year. | City of Toronto |
The second row is the one that generates the disputes. A January closing means the previous year’s occupancy status is entirely the seller’s knowledge, and the declaration for that year has not yet been filed when the keys change hands.
The rate, and a stale document to ignore
For the 2025 taxation year the tax is three per cent of the property’s Current Value Assessment. The City states the rate rose to 3 per cent beginning with the 2024 taxation year.
Do not cite Toronto Municipal Code Chapter 778 for the rate. The online consolidation is dated 15 February 2023 and still reads “one (1) percent of the CVA” at s. 778-3.1. It is out of date. The operative rate is on the City’s Vacant Home Tax programme page.
I could not find a 2026-taxation-year rate published separately as at today. The 3 per cent rate is open-ended and carries forward absent a Council decision, but I am not going to state a 2026 rate as confirmed when the City has not restated it.
The dates that matter between now and the end of the year
| What | When | Note |
|---|---|---|
| 2025 Vacant Home Tax — first instalment | 15 September 2026 | Three equal instalments |
| Second instalment | 15 October 2026 | |
| Third instalment | 16 November 2026 | |
| Deadline to dispute a 2025 bill | 31 December 2026 | After this, the bill stands |
The 2026 declaration period dates — for declaring your 2026 occupancy status — had not been published as at 30 August 2026. For reference only, the 2025 cycle ran from 3 November 2025 to 30 April 2026. That is a precedent, not a 2026 date, and I will update this page when the City publishes.
What I would want confirmed before closing
None of this is legal advice and your real estate lawyer is the person who handles it. But these are the questions I raise:
- Has the declaration for the relevant year been filed, and can the seller produce a copy of the filed declaration rather than an assurance that it was done?
- If the closing falls after the taxation year, is there an undertaking from the seller to file, and what happens if they do not?
- Is there an outstanding assessment or a bill already issued against the property?
- Has anything been adjusted for on the statement of adjustments, and on what basis?
One thing I want to be straight about. I could not find any City of Toronto publication describing an official Vacant Home Tax “statement of account” product or a prescribed closing-adjustment process. The City’s guidance stops at “make appropriate arrangements” and the vendor handing over the filed declaration. Whatever your lawyer does about this at closing is conveyancing practice, not a published City procedure, and you should not assume there is a City form that resolves it.
Closing on an Etobicoke property this autumn?
The Vacant Home Tax declaration is a five-minute item that becomes a five-figure problem when it is missed. If you are buying or selling between now and year end, I will make sure it is on the list and that your lawyer has what they need. Send me the address and the closing date.
connect@jatindua.com · 437-987-1925 · Book a free consultation
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Frequently asked questions
Can I be charged the Vacant Home Tax on a home I just bought?
Yes, where no declaration was filed for the relevant year. The City states the tax forms a lien on the property and the purchaser will be held responsible for payment. The tax attaches to the property, not to the person who owned it during the vacancy.
Who has to file the declaration when a property sells?
If the sale closes within the taxation year, either the vendor or the purchaser can submit it. If the sale closes after the taxation year, the City states the vendor must submit it, because only the vendor knows the occupancy status for that year.
What is the rate?
Three per cent of the property’s Current Value Assessment for the 2025 taxation year. The City states the rate rose to 3 per cent beginning with the 2024 taxation year. Note that the online Toronto Municipal Code Chapter 778 consolidation still shows 1 per cent; that consolidation is dated February 2023 and is out of date.
When is the 2025 Vacant Home Tax payable?
In three equal instalments on 15 September, 15 October and 16 November 2026.
How long do I have to dispute a bill?
The deadline to dispute a 2025 bill is 31 December 2026.
When does the 2026 declaration open?
The City had not published the 2026 declaration period dates as at 30 August 2026. The 2025 cycle ran from 3 November 2025 to 30 April 2026, which is a precedent rather than a confirmed date for this year.
Is there a City form for handling this at closing?
Not that I could find. The City’s published guidance goes as far as telling purchasers and vendors to make appropriate arrangements and telling vendors to hand over a copy of the filed declaration. There is no published City statement of account or prescribed adjustment process. How it is handled on closing is a matter for your lawyer.
Related reading
- Toronto land transfer tax: the bracket table from 1 April 2026
- New-home HST relief: the eligibility checker
- Non-Resident Speculation Tax: who pays, who is exempt
Sources
Every figure on this page traces to one of these, and each was read on 30 August 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- Vacant Home Tax. City of Toronto. Rate, declaration requirement, change-of-ownership responsibilities and payment dates. Accessed 30 August 2026.
- Municipal Land Transfer Tax rates and fees. City of Toronto. Page headed “Rates as of April 1, 2026”. Accessed 30 August 2026.
About the author — Jatin Dua, Etobicoke real estate agent
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke. I write these pages the same way I work a file: read the primary source, quote it, date it, and say plainly where the source is silent or where two sources disagree. If a figure on this page has no citation beside it, that is a mistake and I want to hear about it.
I work with buyers, sellers, renters and investors across Etobicoke, Mimico, Humber Bay Shores, New Toronto, Long Branch, Alderwood and Stonegate–Queensway. connect@jatindua.com or 437-987-1925.