Housing affordability is shaping this fall's municipal election, and one closing cost keeps coming up: Toronto's Municipal Land Transfer Tax (MLTT). Here's what Toronto buyers actually pay today, what changed earlier this year, and what hasn't changed at all.
Oct 26, 2026 Toronto municipal election date | 85% / 69% GTA and Barrie residents concerned about housing affordability / say housing will affect their vote (TRREB poll, Sept 16) |
~$33,000 combined provincial and Toronto land transfer tax on an average-priced Toronto home (TRREB) | $17,000+ what the Toronto MLTT alone adds, per TRREB |
The Election Context
Toronto's municipal election is scheduled for Monday, October 26, 2026. In a poll released September 16, the Toronto Regional Real Estate Board (TRREB) reported that 85% of GTA and Barrie residents are concerned about housing affordability, and 69% say housing will affect how they vote. TRREB has launched an election campaign called "Remove Housing Roadblocks," asking candidates across the GTA to commit to cutting local barriers that add to housing costs.
What Toronto Buyers Pay Today
Buy a home inside the City of Toronto and you pay two land transfer taxes: Ontario's provincial tax and the City's MLTT. According to TRREB, Toronto is the only municipality in Ontario that charges one. Combined, the two taxes now total roughly $33,000 on an average-priced Toronto home, and TRREB says the MLTT alone adds more than $17,000.
On the portion of a price up to $2 million, Toronto's rates match the provincial rates, which is why the two bills are close to identical at typical price points. Our Land Transfer Tax calculator gives you your exact figure, and our earlier guide to the first-time buyer rebate walks through who qualifies. First-time buyers can claim a rebate of up to $4,000 provincially and up to $4,475 from the City.
What Changed on April 1, 2026
Toronto City Council voted on December 17, 2025 to raise the MLTT on higher-value homes, and the new rates took effect April 1, 2026. The increase applies to homes valued above $3 million containing one or two single-family residences:
| Portion of the price | Before | From April 1, 2026 |
|---|---|---|
| $3 million to $4 million | 3.5% | 4.40% |
| Above $20 million | 7.5% | 8.60% |
| Below $3 million | No change | No change |
Supporters, including Mayor Olivia Chow, have argued that the increase affects very few buyers while raising meaningful revenue for the City. TRREB opposes it, arguing that taxes on higher-value homes discourage owners from moving and reduce the supply of move-up homes. It's a genuine policy disagreement, and this election is where it plays out.
What Hasn't Changed
Nothing about your closing costs changes because of the election itself. The MLTT is set by City Council, so any reduction, rebate increase, or expansion would need action by the council elected on October 26 through its budget process, or by the Province, which TRREB has also asked to step in. TRREB has called on candidates to consider tax relief or an increased first-time buyer rebate, and to oppose extending an MLTT to other municipalities. These are advocacy positions and campaign discussion, not changes in the law.
TRREB has also pointed out that the City's first-time buyer MLTT rebate hasn't been updated since 2016.
Buying Outside Toronto?
The MLTT applies only inside the City of Toronto. Buyers in Mississauga, Vaughan, Markham, and Brampton pay the provincial land transfer tax only. That's relevant if you're weighing a Toronto purchase against a project like South Banks at Lakeview Village or The Nine in Mississauga — though the comparison should always be made on total cost, not on one tax alone.
What This Means for You
- Budget on today's rules. Use current rates in your closing-cost planning, since the land transfer tax is cash due on closing and can't be added to your mortgage.
- If you're buying above $3 million, double-check your numbers against the City of Toronto directly, since those higher tiers only took effect in April.
- Watch the post-election budget. If a new council changes the MLTT or the rebate, the change would follow the council's decisions, not the vote itself.
The Bottom Line
The land transfer tax is one of the largest costs in a Toronto purchase, and it's now part of the election conversation. For buyers, the practical takeaway is simple: plan around the rules that exist today, and treat anything else as a proposal until council acts.
Want your exact closing costs before you make an offer? Use our calculator or contact our team for a full breakdown.
This article is for general information and is not legal or tax advice. Confirm your specific closing costs with your real estate lawyer.
