Every week, I try to make sense of what’s happening in Toronto real estate and not just as a realtor. But as someone who’s lived, worked, and raised a family in this city. And this week, all eyes are on one headline:
Mayor Olivia Chow is proposing a significant increase to the land transfer tax on homes over $3 million.
I am not sure why as a city our solution to many problems is to increase taxes. Maybe because unfortunately the city seems to have an attitude that homeowners are wealthy. We already pay some of the highest overall real estate taxes, so why make it even more expensive.
So here is what they are proposing:
Starting in 2026, the City is looking to raise an additional $14 million by increasing the municipal land transfer tax (LTT) on higher-end properties. Only about 1,164 sales last year would have been affected—roughly half of one percent of Toronto residents.
According to the Mayor “The wealthiest two per cent of property buyers should contribute a bit more so we can invest in services families rely on.”
So what are wealthy homeboys looking at starting 2026.
$3M–$4M: +0.9% → 4.40% total
$4M–$5M: +0.95% → 5.45% total
$5M–$10M: +1.0% → 6.5% total
$10M–$20M: +1.05% → 7.55% total
$20M+: +1.10% → 8.6% total
Remember:
Toronto buyers pay both the provincial LTT and the municipal LTT.
That means these numbers effectively double when all is said and done.
Most realtors including myself strongly opposes the municipal land transfer tax and the proposed hikes. Why? It will effect movement in the market.
Ironically Jason Mercer, TRREB’s Chief Market Analyst, pointed out the same thing.
If high-end buyers get discouraged by heavy upfront taxes, they don’t move.
And when they don’t move, the mid-range homes they would have vacated never come to market.
Its a domino effect.
On one hand, the City needs revenue.
On the other, more friction in the market slows mobility and can shrink supply across multiple price points, not just at the top.
There are no simple answers here.
Whether you ever plan to buy a $3M+ home or not, this proposal affects the entire ecosystem. Real estate is connected: pressure at one end eventually shows up somewhere else.
Personally? I’d love to see more support for first-time buyers built into these conversations. A bigger rebate. More pathways to ownership. In short I would love to see a plan. A plan to me is not increasing taxes every time there is a fiscal short fall but fresh ideas that benefits everyone.
