TORONTO, Dec. 02, 2025 (GLOBE NEWSWIRE) — Municipal land transfer taxes (MLTTs) hurt the Canadian dream of home ownership by taking thousands of dollars out of home buyers' pockets. With average home prices in the City of Toronto exceeding $1 million, the Toronto MLTT adds over $17,000 to the upfront closing cost of buying a home. Together, home buyers pay both a city and provincial land transfer tax, doubling the LTT cost to $34,000 on the average Toronto home, making Toronto one of the highest tax jurisdictions in North America when it comes to housing.
According to the Canadian Centre for Economic Analysis, over 35% of the cost of a new home in Ontario is now made up of government taxes. Toronto home buyers and owners pay more than their fair share of taxes to the City.
Since the introduction of the MLTT in 2008, Toronto has increased the tax in 2017 and 2023. Each time, supporters have argued that the tax would be used to make rental and other forms of housing more affordable for residents. There is no data or evidence to suggest that higher housing taxes make our City more affordable. In fact, the experience of home buyers and market data suggest the opposite is true. The City cannot keep ignoring the challenges of those who want to enter the ownership market but can't.
The MLTT suppresses housing supply by adding thousands of dollars to the costs of listing a home for sale. Increasing taxes on higher-value homes over $3 million limits the supply of move-up properties, adding obstacles to Toronto's housing market. This leaves higher-income buyers with a greater incentive to compete with first-time home buyers and younger residents for more affordable homes.
Rather than hiking taxes on Toronto homes again, City Council should prioritize relief for those struggling with the cost of housing, especially first-time home buyers. Toronto has not increased or adjusted its MLTT rebate for first-time home buyers since 2016, forcing cash-strapped first-time home buyers to pay over $25,000 in land transfer taxes on an average-priced home. Making life more affordable for the people of Toronto should start by giving hope to the thousands of young people and families struggling to enter the City's ownership market.
We urge the City Council to reject this latest proposed increase to Toronto's MLTT and instead, as TRREB has called for in the past, apply the additional revenue the City has earned since introducing the additional MLTT rate thresholds to increase the MLTT first-time homebuyer rebate.
Elechia Barry-Sproule
TRREB President
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About TRREB: 
The Toronto Regional Real Estate Board is Canada's largest real estate board, with over 70,000 residential and commercial professionals connecting people, property, and communities. 
