October 1, 2026
Toronto homebuyers could potentially save up to $18,000 in Municipal Land Transfer Tax under a new proposal announced today by Toronto mayoral candidate Brad Bradford.
Bradford is proposing to waive Toronto’s Municipal Land Transfer Tax (MLTT) on the first $1.1 million of the purchase price of a primary residence.
For anyone who has purchased a home in Toronto—or considered doing so—that is a significant number.
As a REALTOR® and a member of the Toronto Regional Real Estate Board’s Government Relations Committee, I’m especially pleased to see meaningful reform of the Municipal Land Transfer Tax being discussed. This is an issue TRREB has advocated on for many years.
While this is currently a campaign proposal rather than City policy, having substantial MLTT relief become part of the mayoral conversation is an important development for Toronto homebuyers and homeowners.
What Is Toronto’s Municipal Land Transfer Tax?
Toronto is unique in Ontario because buyers purchasing property within the City pay a Municipal Land Transfer Tax in addition to the Ontario Land Transfer Tax.
The City introduced the MLTT in 2008.
That means a Toronto homebuyer can effectively face two land transfer tax bills when purchasing a property—one provincial and one municipal.
Under Toronto’s current rates, the municipal tax alone on a $1.1 million residential purchase is approximately $18,000 before any applicable rebates.
And this money is due at closing, when buyers are already managing a down payment, legal fees, moving expenses and other costs associated with purchasing a home.
What Is Being Proposed?
Under Bradford’s proposal, Toronto would provide a full rebate of the Municipal Land Transfer Tax on the first $1.1 million of the purchase price of a primary residence.
One particularly significant aspect of the proposal is that the relief would not be limited to first-time homebuyers.
If implemented as proposed, existing homeowners purchasing another primary residence could benefit as well.
For a purchase of $1.1 million, the potential municipal land transfer tax savings would be approximately $18,000.
For properties above $1.1 million, the proposed relief would apply to the first $1.1 million of the purchase price, with the applicable MLTT continuing on the portion above that amount.
To be clear, this has not become law. It is a campaign proposal and would require the necessary steps at City Hall before taking effect.
Why This Matters Beyond First-Time Buyers
When we talk about housing affordability, the focus is understandably often on first-time buyers.
But there is another important part of the housing conversation: mobility.
Consider a growing family living in a condo that needs an extra bedroom and would like to move into a house.
Or an empty-nester living in a larger detached home who would prefer to downsize into a condo.
Both may already own a home, but when they purchase their next Toronto property, the Municipal Land Transfer Tax becomes another significant cost associated with making that move.
That transaction cost can influence people's decisions about whether moving makes financial sense.
Reducing that barrier could make it easier for homeowners to move into housing that better fits their changing needs—and potentially free up housing for the next family or buyer.
A healthy housing market isn't just about helping people get into their first home. It's also about allowing people to move through different types of housing as their lives change.
Years of Advocacy on the Municipal Land Transfer Tax
This announcement is particularly meaningful to me because of my involvement with the Toronto Regional Real Estate Board’s Government Relations Committee.
Most consumers understandably don't see much of the advocacy work that happens behind the scenes in organized real estate.
TRREB has been advocating for meaningful reform of the Municipal Land Transfer Tax for many years, raising concerns about the additional upfront cost it places on Toronto homebuyers and the effect transaction taxes can have on housing mobility.
Being involved with the Government Relations Committee has given me an opportunity to see firsthand the amount of work that goes into bringing housing issues to policymakers and keeping those conversations moving.
Policy change rarely happens overnight.
It often requires years of research, meetings, discussions and continued advocacy before an idea gains meaningful traction.
That’s why seeing substantial MLTT relief being discussed in a Toronto mayoral campaign is significant.
Regardless of the outcome of the election or the ultimate form this proposal takes, an issue that TRREB has advocated on for years is now receiving serious public attention.
There Are Still Important Questions to Answer
Of course, there is another side to the discussion.
The Municipal Land Transfer Tax is a significant source of revenue for the City of Toronto. Toronto’s 2026 budget anticipated approximately $850 million in MLTT revenue, with the majority supporting operating costs and the remainder contributing to capital financing.
Any major reduction in the tax therefore raises a legitimate question: How would the City replace that revenue or adjust its spending?
That will be an important part of the debate around this proposal.
Housing policy is rarely solved by one initiative alone. Toronto also needs adequate housing supply, efficient development approvals, infrastructure investment and policies that support the creation of different types of housing.
But reducing the enormous upfront transaction costs associated with purchasing a home deserves to be part of that conversation.
A Significant Development for Toronto Homebuyers
For years, REALTORS® and TRREB have raised concerns about the impact of the Municipal Land Transfer Tax on Toronto homebuyers and homeowners.
Today’s announcement does not mean the tax has changed.
But it does represent an important development in a conversation that has been taking place for a very long time.
From my perspective as both a Greater Toronto Area REALTOR® and a member of TRREB’s Government Relations Committee, I’m encouraged to see the cost of moving—and the effect that cost can have on housing affordability and mobility—receiving this level of attention.
I’ll be following this proposal closely as Toronto’s mayoral campaign continues.
In the meantime, if you're considering purchasing a home in Toronto, remember that the Municipal Land Transfer Tax remains in effect under the current rules and should be factored into your closing costs.
If you’re thinking about buying or selling in Toronto or the Greater Toronto Area and want to understand the costs associated with your next move, feel free to reach out. I’m always happy to have a conversation.
Paul Lee
REALTOR® | Greater Toronto Area
This article is for general informational purposes. The proposal discussed above is a campaign proposal as of October 1, 2026 and has not been implemented as City of Toronto policy. Buyers should obtain legal and financial advice regarding taxes, rebates and closing costs applicable to their individual circumstances.