Toronto city council has approved an increase to the municipal land transfer tax on homes selling for more than $3 million, a move Mayor Olivia Chow says asks the city’s wealthiest buyers to contribute more, while critics warn it could drive up costs and push buyers out of the city.
After hours of debate on Wednesday, council voted 17–7 in favour of a motion introduced by Chow. The changes, set to take effect in April 2026, are expected to generate an additional $13.8 million in revenue next year, according to city staff.
The decision marks the second increase to Toronto’s Municipal Land Transfer Tax (MLTT) on multi-million-dollar properties since 2023. Chow said the measure is aimed at improving affordability for most residents.
“I’m asking the top two per cent of wealthiest homebuyers: if you can afford to buy luxury properties, you can afford to pay a bit more,” Chow told council.
She cited examples of high-end homes—some valued at $20 million with multiple bathrooms, extensive parking, indoor pools and luxury finishes—as evidence that buyers at the top end of the market can shoulder higher taxes.
Not all councillors agreed. Coun. Jon Burnside, who represents Don Valley East, said affordability should apply across the board, noting that residential property taxes have increased twice since Chow took office—by 9.5 per cent in 2024 and 6.9 per cent in 2025.
Burnside questioned whether the tax hike could prompt wealthy buyers to relocate to nearby communities such as Aurora, Ont. Chow said she was not concerned.
Tensions escalated during an exchange with Coun. Brad Bradford of Beaches–East York, the only councillor to have announced a run for mayor in 2026. Speaking after the vote, Bradford criticized the decision as out of touch.
“At a time when people are paying more at the grocery store, more at the pump, more in rent and more in interest rates, this council and the mayor have just passed the largest tax increase,” he said. “It won’t make life more affordable. It will make living in Toronto more expensive.”
Bradford also pointed to a 2023 motion he introduced to increase the city’s first-time homebuyer rebate, which Chow voted against and which ultimately failed.
Chow pushed back, citing what she described as a significant budget shortfall inherited from the previous administration. She accused Bradford, who previously oversaw the TTC, of leaving the city with a $180-million budget gap, cutting transit service and raising fares twice.
Chow said Toronto’s fiscal position has improved over the past two years due to measures adopted by council under her leadership.
Bradford later told reporters he would continue to push for what he called “practical, common-sense proposals,” adding that voters will have their say in the next municipal election, scheduled for Oct. 26, 2026.
Under the approved changes, the MLTT will increase on a progressive scale:
- $3 million to $4 million: increase of 0.9 percentage points, total rate 4.40%
- $4 million to $5 million: increase of 0.95 percentage points, total rate 5.45%
- $5 million to $10 million: increase of 1 percentage point, total rate 6.5%
- $10 million to $20 million: increase of 1.05 percentage points, total rate 7.55%
- Above $20 million: increase of 1.10 percentage points, total rate 8.6%
By Muriel Draaisma · CBC News
