Treat the Vacant Home Tax as a property issue
The direct answer is that Toronto buyers and sellers should verify the property’s Vacant Home Tax history before closing, not assume the tax belongs only to the former owner. The City states that unpaid tax forms a lien on the property and may become the purchaser’s responsibility. The agreement and legal closing process should address that risk.
Create a yearly file showing the registered owner, occupancy status, declaration confirmation, exemption, City notices, complaints or appeals, and amounts paid. Sam Kamra encourages parties to replace verbal assurances with records that their real-estate lawyers can review.
Know what the annual declaration does
Toronto requires residential owners to declare occupancy status every year, even when the home is their principal residence or qualifies for an exemption. Without a declaration by the deadline, the City may deem the property vacant and assess tax. Owners can use Property Tax Lookup to review available status information.
For the 2025 taxation year, the City says the rate is three per cent of the property’s Current Value Assessment. Rules, dates and forms can change, so confirm the current year directly with the City. False declarations or failure to provide requested information can lead to tax, interest and other consequences.
Handle a change of ownership with documents
The City says purchasers and vendors are responsible for making arrangements to ensure the occupancy declaration has been submitted. Vendors should provide the purchaser with a copy of the completed filing. Toronto’s property-sale guidance also tells vendors to provide a statutory declaration at closing confirming that the filed property-status declaration is true and correct.
The correct filer can depend on when the sale occurs relative to the taxation year and declaration period. When the prior owner is the only person who knows the earlier occupancy facts, the seller’s participation is essential. Sam Kamra’s property guidance helps organize the practical questions, while additional resources can help buyers and sellers prepare for their legal review.
Understand the transfer-of-ownership exemption
Toronto lists a transfer of legal ownership as an exemption when the purchase closed during the taxation year being declared and the transaction involved a 100 per cent transfer of the property. The City says this does not include a name change, adding a second owner or removing a second owner. A copy of the land transfer deed is listed as supporting evidence.
Do not label every title change a sale or assume that partial ownership changes qualify. Ask the lawyer which party should file, what evidence should be retained and how the exemption applies to the transaction’s dates. If the City has already issued an assessment, obtain advice about payment, adjustment, complaint or holdback options rather than waiting until closing day.
Use a tax and utility certificate in legal due diligence
The City advises purchasers to conduct due diligence regarding property-tax liabilities and tells buyers to consult their lawyer about obtaining a Tax and Utility Certificate. The certificate provides the current status of property taxes and the utility account, plus upcoming due dates. It is one part of the closing review rather than a substitute for declarations and supporting records.
Buyers should ask for filed declarations and relevant City correspondence for the years their lawyer considers appropriate. Sellers should disclose unresolved notices, audits, complaints or appeals promptly. If the property was bought under power of sale, Toronto warns that the purchase is generally as-is for these taxes and that power of sale is not itself a Vacant Home Tax exemption.
Build a closing checklist both sides can follow
Sellers can gather declaration receipts, notices, proof of occupancy or exemption, payment records and the statutory declaration requested for closing. Buyers can have their lawyer review those records, the tax certificate and agreement protections. Both sides should calendar any outstanding City deadline and specify who must act if a notice arrives after completion.
Public data can support due diligence without replacing legal review; CB Herald’s discussion of Sam Kamra and public LTB data illustrates that principle. Sam Kamra’s broader property-services work has also been covered in Barchart’s report on the RealEstateBuyer.ca launch. The practical conclusion is simple: verify the filing, preserve the evidence and let the lawyers allocate any remaining risk before keys change hands. Buyers and sellers can bring this checklist to their closing meeting.
Questions and answers
Toronto Vacant Home Tax FAQ
Does every Toronto homeowner have to file a Vacant Home Tax declaration?
Toronto requires residential property owners to declare occupancy status annually, including owners who live in the property or qualify for an exemption. Check the City’s current page for the applicable filing period and process.
Can unpaid Toronto Vacant Home Tax affect a buyer?
Yes. The City states that the tax forms a lien on the property and that a purchaser can be responsible for unpaid amounts. Buyers should conduct legal and tax due diligence before closing.
Does every ownership change qualify for the transfer exemption?
No. Toronto says the exemption applies to a purchase closing in the taxation year being declared with a 100 per cent transfer. Name changes and adding or removing a second owner are excluded.
What should a seller give the purchaser?
The City says vendors should provide a copy of the completed occupancy declaration and a statutory declaration at closing confirming it is true and correct. Lawyers may request additional evidence based on the property.
Authoritative sources
- City of Toronto — Vacant Home Tax
- City of Toronto — Buying, Selling or Moving
- City of Toronto — Tax and Utilities Answers
This article provides general information, not legal, tax, mortgage or financial advice. Confirm figures and eligibility with the appropriate professional and current official sources.