Item - 2025.EX28.1

Mayor Olivia Chow recommends that:

1. City Council revise the graduated Municipal Land Transfer Tax (MLTT) rates for high value residential properties containing at least one, and not more than two, single family residences, by amending the thresholds as follows:

2. City Council direct the Chief Financial Officer and Treasurer to implement graduated Municipal Land Transfer Tax rates effective for all transactions registered or upon which Municipal Land Transfer Tax otherwise becomes payable on or after April 1, 2026.

3. City Council amend City of Toronto Municipal Code Chapter 760, Municipal Land Transfer Tax to reflect the changes detailed above.

4. City Council authorize the Chief Financial Officer and Treasurer to amend the City’s Collection Agreement with Teranet to allow Teranet to collect the Municipal Land Transfer Tax in accordance with these changes.

The City can play a role in saving families money. Together, we’ve made choices that help, like saving families $1,200 on grocery bills through the school food program and not raising TTC fares for three years running.

That’s in addition to building more affordable rental homes, and creating more free spaces - like library Sunday hours and more recreation for youth.

We’ve already taken steps in this direction. When I first arrived in 2023, I ask people buying luxury homes to chip in a little more. It was designed as new graduated rates on the MLTT for high-priced homes. In 2024, it impacted only 2% of home-buyers and brought in $138 million in revenue, taking pressure off working and middle class families. That’s revenue that keeps our city running.

It’s clear that the impact of our current economic uncertainty is not being evenly felt across our City. Many people are at risk of losing their jobs and finding it harder to make ends meet. Some continue to do very well. I’m asking the 2% of buyers purchasing luxury homes far beyond what average Torontonians can afford to chip in more. Those who can afford five or ten million dollar homes can afford to pay their fair share.

This motion raises the cost to buy Luxury Homes incrementally - between 0.9% and 1.1% on the graduated rates listed below - to shift the cost of funding our city towards those who can afford it the most.