Vacant Home Tax & Underused Housing Tax
What Toronto & GTA property owners need to know about VHT and UHT
Owning a property in Toronto comes with annual tax requirements – even if the home is occupied.
Here’s a simple overview of VHT and UHT and how Dash Property Management helps you stay compliant.
Vacant Home Tax (VHT)- City of Toronto
The City of Toronto requires homeowners to submit an annual occupancy declaration – even if you live in the property. If a home, condo, or multi-unit remains vacant/declared vacant for extended periods, the VHT may apply.
If you fail to declare, the city may assume your property is vacant and tax it accordingly.
At Dash Property Management, we help property owners understand and comply with VHT, so you avoid penalties and maximize returns.
Vacant Home Tax (VHT) — City of Toronto
What it is:
An annual tax the City applies to homes that are vacant for long periods.
Who must file:
Every Toronto homeowner must submit an annual occupancy declaration — even if you live in the property.
Tax rate:
Currently 3% of the property’s assessed value if the home is vacant or declared vacant.
Why it matters:
If you don’t file your declaration, the City may classify your property as vacant and charge the tax.
Common exemptions:
Principal residence
Tenanted property
Major renovations
Long-term medical leave
Death of owner
Underused Housing Tax (UHT)
The UHT is a federal tax that took effect on January 1, 2022. It generally applies to non-resident/non-Canadian owners of Canadian residential property — or certain Canadian-resident owners when property is held in a trust, corporation or partnership.
If you’re an “affected owner,” you must file an annual return for each residential property, even if no tax is owing.
At Dash Property Management, we help property owners understand and comply with UHT, so you avoid penalties and maximize returns.
Underused Housing Tax (UHT) -Federal Government
What it is:
A federal tax targeting residential properties that are vacant or underused.
Who it applies to:
Mainly non-resident owners, but some Canadian owners who hold properties through corporations, partnerships,
or trusts may also need to file.
What you must do:
If you are an “affected owner”, you must file a UHT return every year, even when no tax is owed.
Tax rate:
1% of the property’s value (assessed value or most recent sale price).
Why it matters:
Missing a filing can result in hefty penalties, even if you owe no tax.
Why Choose DASH?
Dash Property Management ensures your property stays occupied, compliant, and profitable.
Our extensive knowledge and experience allow you to make wise decisions, from buying, selling, and leasing properties to managing your investment portfolio.
No matter if you’re just starting in real estate or are a seasoned investor, DASH is here to enhance your investment journey and boost your expertise. We’ll turn your real estate dreams into a profitable reality.