# Toronto Vacant Home Tax and long-term care | TorontoReverseMortgage.ca > Toronto's Vacant Home Tax is 3% of assessed value. How the in-care exemption works when a parent moves into long-term care. Free estimate, no sales pressure. URL: https://torontoreversemortgage.ca/guide/toronto-vacant-home-tax-long-term-care/ Learn # Does Toronto's Vacant Home Tax apply when a parent moves into long-term care? Written for the adult child: the 3% tax, the yearly declaration, the in-care exemption and its documents, and how the rules meet a parent's reverse mortgage. Updated September 18, 2026 · 5 minute read · Published by Dominion Lending Centres Homestead Financial The short answer No, not for up to two consecutive years, as long as the exemption is declared. Toronto's Vacant Home Tax exempts a home left empty while its principal resident spends at least six months of the year in a hospital, long-term or supportive care facility. After two years, the 3% tax applies unless someone lives there. [See what your own Toronto home could provide](/estimate/): a free estimate, no sales pressure. On this page 1. [How much is the Vacant Home Tax in Toronto?](#how-much-is-the-vacant-home-tax-in-toronto) 2. [Who has to declare, and what happens if nobody does?](#who-has-to-declare-and-what-happens-if-nobody-does) 3. [What does the “principal resident is in care” exemption cover?](#what-does-the-principal-resident-is-in-care-exemption-cover) 4. [How does the Vacant Home Tax meet a reverse mortgage?](#how-does-the-vacant-home-tax-meet-a-reverse-mortgage) [TorontoReverseMortgage.ca](/) explains how Toronto’s Vacant Home Tax treats a house left empty when a parent moves into long-term care, for the adult child handling the paperwork. An adult child in this situation wants to know whether the empty house will be billed. The challenge is not usually the exemption itself. It is the yearly paperwork: every owner must declare, a missed declaration is billed as vacant, and the exemption ends after two years. This page covers the tax, the in-care exemption and how the rules meet a reverse mortgage. ## How much is the Vacant Home Tax in Toronto? The Vacant Home Tax is 3% of the property’s Current Value Assessment, the value MPAC (the Municipal Property Assessment Corporation) sets for property tax, from the 2024 tax year on. On the average Toronto home, assessed at $692,140 in 2026, the tax is about $20,764 for one year. The tax is close to four times the regular 2026 property tax on the same average home, which is $5,311 ([City of Toronto 2026 budget](https://www.toronto.ca/legdocs/mmis/2026/cc/bgrd/backgroundfile-284368.pdf)). Ontario assessments still use January 1, 2016 values, so the tax is based on that value, not today’s price ([MPAC](https://www.mpac.ca/en/UnderstandingYourAssessment/AssessmentCycle)). ## Who has to declare, and what happens if nobody does? Every residential owner in Toronto must declare the home’s occupancy status every year, even for a home they live in or one that qualifies for an exemption. The deadline is April 30, for the year before. A home with no declaration is deemed vacant and billed the full tax ([City of Toronto](https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/)). - **Who can declare:** the owner, or an authorized representative acting on the owner’s behalf. If your parent named you in a power of attorney for property, ask the City what it needs. - **What you need:** the customer number plus the address or the 21-digit assessment roll number, found on the property tax bill, a tax account statement or a Vacant Home Tax notice. - **False declarations:** fines of up to $10,000, on top of the tax. - **Unpaid tax:** overdue Vacant Home Tax is added to the property tax roll and charged 1.25% a month, the same as [overdue property tax in Toronto](/guide/toronto-property-tax-arrears/). - **2025 bills:** sent in June 2026 and due September 15, October 15 and November 16, 2026. The deadline to dispute one is December 31, 2026. ## What does the “principal resident is in care” exemption cover? The exemption covers a home left vacant while its principal resident is in a hospital, long-term or supportive care facility for at least six months of the tax year. The owner can claim it for up to two consecutive tax years. The home must still be declared each year, with documents. ### The documents to keep - A signed letter from the care facility, on its letterhead. - Proof that your parent lived at the house before entering care. The City can audit a declaration and requires owners to keep exemption records for at least three years. ### When a house counts as vacant A house counts as vacant only if it was empty for six months or more of the tax year. A parent who lived at home for at least six months of the year of the move can declare the house their principal residence for that year. Time away for medical care doesn’t make a home vacant while it is still the principal residence. A hospital or care stay of more than six months falls under the in-care exemption instead. ### When an owner dies A separate exemption covers a house left vacant because an owner died: up to three consecutive tax years, counting the year of death and the two after, with a copy of the death certificate. ## How does the Vacant Home Tax meet a reverse mortgage? A reverse mortgage becomes due when the last borrower moves permanently into care. Families commonly have up to a year to sell or repay, since the time allowed is 180 to 365 days, depending on the product. A sale inside that window falls within the two years the in-care exemption can cover. A parent still living in the house keeps it occupied. The house is still that parent’s principal residence, so the tax doesn’t apply, and a reverse mortgage with both parents as borrowers doesn’t become due. The parent at home may also qualify for [Toronto’s property tax relief for low-income seniors](/guide/toronto-property-tax-deferral/). [What happens to a reverse mortgage in long-term care](/guide/reverse-mortgage-long-term-care-toronto/) covers the lender’s side. Keeping an empty house longer changes two things. The reverse mortgage still has to be repaid, because it is already due and the lender’s rules apply until it is. After the two exempt years, the 3% tax applies for any year the house is empty six months or more, unless someone lives there: - **Family or friends:** the house must be their principal residence for at least six months of the year. - **Tenants:** they need a written agreement of at least 30 days, for a total of at least six months in the year. A sale still needs a declaration. When the house sells in a later year, the seller must declare for the year before, because only the seller knows how the house was used. An undeclared house is deemed vacant, and the tax becomes a lien on the property that the City makes the buyer pay. ### An example on Toronto’s average assessment of $692,140 For example, an illustrative mother, 86, lives alone in her Toronto house, assessed at $692,140, the average Toronto home assessment in 2026. She has a reverse mortgage. She moves permanently into a long-term care home in October 2026, after living at home for nine months of the year. For 2026, the house was her principal residence for at least six months, so it is declared occupied. For 2027, she is in care all year, so her son declares the house vacant with the in-care exemption and its documents. The reverse mortgage became due in October 2026, and her product allows 365 days to sell or repay. A sale by October 2027 falls within that first exempt year. If the family instead repaid the reverse mortgage and kept the house empty, 2028 would be the second exempt year, and the tax for 2029 would be about $20,764, 3% of $692,140, unless someone lived there. Richard Hopkins, Mortgage Broker, answers by email, phone or video call, and adult children can be copied on every email about a parent’s reverse mortgage. A reverse mortgage set up while a parent still lives at home can also pay for [home care in Toronto](/paying-for-home-care-toronto/) during the wait for a bed. ## The bottom line Toronto's Vacant Home Tax doesn't apply to a parent's empty house for up to two consecutive years, as long as the in-care exemption is declared each year with the facility's letter. A sale within a reverse mortgage's settlement time falls inside those two years. Keeping the house longer means someone has to live there, or the 3% tax applies. [Get a free estimate for your Toronto home](/estimate/). It's free, and there's no sales pressure. ## Questions people also ask **Can an adult child make the Vacant Home Tax declaration for a parent?** Yes. The City accepts a declaration from the owner or from an authorized representative acting on the owner's behalf. You need the customer number plus the address or the 21-digit assessment roll number, from the property tax bill, a tax account statement or a Vacant Home Tax notice. **What if the declaration was missed while a parent was in care?** The City deems an undeclared home vacant and sends a Vacant Home Tax bill. An owner can dispute the bill with a Notice of Complaint, including when the home qualified for an exemption. The deadline to dispute a 2025 bill is December 31, 2026. **Does renting out the house avoid the Vacant Home Tax?** Yes, if the tenants have a written agreement for at least 30 days and live there for a total of at least six months of the year. A reverse mortgage on the house still has to be repaid within the lender's time limit, because it became due when the last borrower moved permanently into care. [ Related service Paying for care at home Public home care is free if you qualify, and monthly deposits from your home's value can pay for the extra hours. Read more → ](/paying-for-home-care-toronto/) ## More guides for Toronto homeowners - [What happens to a reverse mortgage if you move into long-term care in Toronto?](/guide/reverse-mortgage-long-term-care-toronto/) - [How does Toronto's property tax deferral for seniors work?](/guide/toronto-property-tax-deferral/) - [Property tax arrears in Toronto: what happens if you fall behind?](/guide/toronto-property-tax-arrears/) - [How much does a reverse mortgage cost in Toronto?](/guide/reverse-mortgage-cost-toronto/) [Email this page to a family member](mailto:?subject=Does%20Toronto's%20Vacant%20Home%20Tax%20apply%20when%20a%20parent%20moves%20into%20long-term%20care%3F&body=I%20thought%20you'd%20want%20to%20read%20this%3A%20https%3A%2F%2Ftorontoreversemortgage.ca%2Fguide%2Ftoronto-vacant-home-tax-long-term-care%2F) · or print it with your browser's Print button ## Sources Figures checked September 18, 2026. 1. [City of Toronto: Vacant Home Tax (modified July 22, 2026)](https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/) 2. [City of Toronto: 2026 property tax rates and the average home's tax impact, budget report (February 6, 2026)](https://www.toronto.ca/legdocs/mmis/2026/cc/bgrd/backgroundfile-284368.pdf) 3. [MPAC: Assessment cycle (2026 property taxes still based on January 1, 2016 values)](https://www.mpac.ca/en/UnderstandingYourAssessment/AssessmentCycle) --- Free reverse mortgage estimate (no sales pressure): https://torontoreversemortgage.ca/estimate/ Operated by Dominion Lending Centres Homestead Financial, a mortgage brokerage licensed by the Financial Services Regulatory Authority of Ontario, brokerage licence #11711. Independently Owned and Operated. TorontoReverseMortgage.ca is a website of Dominion Lending Centres Homestead Financial, not a separate brokerage. Richard Hopkins, Mortgage Broker, licence M16000896.