Toronto 
Toronto’s ongoing affordability strain has prompted a new proposal from Mayor Olivia Chow, who is calling for higher land transfer taxes on the city’s most expensive homes.
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The plan, she says, is aimed at easing pressure on families feeling the effects of rising day-to-day costs.
Chow argues that the City can help buffer residents from increasing expenses, pointing to measures such as maintaining TTC fares for three years and supporting the school food program, which she says has saved families $1,200 in grocery bills. She also highlighted expanded free public spaces and new affordable rental homes as part of the broader effort.
According to the mayor, Toronto’s graduated Municipal Land Transfer Tax (MLTT) on luxury properties, first adjusted in 2023, affected just 2% of buyers in 2024 and generated $138 million. With economic uncertainty hitting residents unevenly, she is asking wealthier buyers to contribute more, particularly those purchasing homes priced far beyond what the average Torontonian could afford.
The proposed MLTT adjustments would apply to residential properties with one or two units valued above $3 million, with new rates ranging from 4.40% to 8.60%.
For example, homes sold between $3 million and $4 million would face a 4.40% rate, while properties exceeding $20 million would be taxed at 8.60%.
If approved, the changes would take effect on April 1, 2026. City Council would also amend its municipal code and update its agreement with Teranet to support the updated system.
The plan has drawn strong criticism from the Toronto Regional Real Estate Board (TRREB), which argues the MLTT already adds burdensome costs. TRREB notes that an average Toronto home, priced over $1 million, results in more than $17,000 in city land transfer tax alone, double when the provincial tax is included. The organization warns that raising taxes on homes over $3 million could restrict supply, push well-funded buyers toward lower-priced properties, and further challenge first-time buyers. Instead, it urges the City to increase the MLTT rebate for new buyers, unchanged since 2016.
