Toronto’s 3% Tax That Can Wreck Your Closing – City has increased its Vacant Home Tax (VHT) to 3% of ASSESSED VALUE – The risk for buyers is inheriting a tax bill.
Toronto has increased its Vacant Home Tax (VHT) to 3% of assessed value, and buyers risk inheriting a surprise bill of about 30,000 on a 1,000,000 home if the seller hasn’t properly filed the declaration before closing. This is landing on buyers’ laps at the last minute via the statement of adjustments, right when financing is already stretched.
Buying in Ontario in 2026? One missed checkbox by the seller can stick you with Toronto’s 3% Vacant Home Tax on closing—up to 30,000 on a 1,000,000 home, due immediately. Add in HST rebate fine print and financing delays, and a “great deal” can turn into a cash-flow nightmare overnight. As a dual-licensed Real Estate Broker and Mortgage Broker focused on complex and distressed files, I structure offers, conditions, and financing so you don’t inherit someone else’s tax bill or legal mess.
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