Vacant Home Tax (VHT) and Underused Housing Tax (UHT) Explained
Learn about the Vacant Home Tax (VHT) in Toronto and the federal Underused Housing Tax (UHT).
Vivian Nunes
Last Update há 4 meses
If you own property in Toronto or anywhere in Canada, you need to know about two important housing taxes: the Vacant Home Tax (VHT) and the Underused Housing Tax (UHT). These taxes aim to address housing shortages, but they apply under different rules and locations.
The Vacant Home Tax is a City of Toronto tax designed to encourage property owners to rent out or live in their homes.
It applies to properties left vacant for more than six months in a year, with exceptions for situations like renovations or the owner's death.
Property owners must declare their property's status every year. Missing this declaration could result in a 1% tax on the property's assessed value.
The Underused Housing Tax is a federal tax targeting underused or vacant residential properties, mainly affecting non-Canadian owners.
It also has a 1% annual tax rate on the property’s assessed value, with exemptions for principal residences, new purchases, and certain family-owned properties.
The UHT involves a detailed filing process, even for exempted properties, and non-compliance can lead to hefty fines.
If managing compliance with the VHT and UHT feels overwhelming, LandLord can help. We offer full-service property management, ensuring your property is not only compliant but also well-maintained and generating income. Contact us today to learn how we can simplify property ownership for you!