TORONTO, October 5, 2026 – Toronto mayoral candidate Brad Bradford has announced that, if elected mayor, he would move to exempt eligible principal residence purchases from Toronto’s Municipal Land Transfer Tax on the portion of the purchase price below the previous year’s average Toronto home price.
Using Toronto’s 2025 average home price of $1.1 million as the benchmark, first-time homebuyers and existing Toronto homeowners who sell one home and purchase another principal residence in the city would pay no Municipal Land Transfer Tax on the first $1.1 million of the purchase price. For an eligible home purchased at $1.1 million, the campaign estimates the savings would be about $18,000.
Bradford said many young people and families in Toronto are facing high homeownership costs, and that reducing the tax burden at the time of purchase would help first-time buyers and residents who need to move within the city.
Toronto charges a Municipal Land Transfer Tax in addition to Ontario’s provincial land transfer tax. The municipal tax is usually paid at closing, alongside the down payment, legal fees and other transaction costs, making it part of the upfront cash burden for homebuyers.
Currently, Toronto’s First-Time Home Buyers’ Rebate is still based on a $400,000 threshold, which has not been adjusted since 2008. According to Bradford’s campaign, only about 2.6 per cent of homes can currently receive a full Municipal Land Transfer Tax exemption under the existing policy. His proposed plan would expand that coverage to more than two-thirds of resale homes.
2. Two Rebates: First-Time Buyers and Moving Within Toronto
Bradford’s proposal has two parts.
First, he would expand the First-Time Home Buyers’ Rebate. The current fixed $400,000 threshold would be replaced with the previous year’s average Toronto home sale price and adjusted annually with the market. Bradford said many first-time buyers in Toronto purchase condos priced below the citywide average, meaning some buyers would no longer need to pay the municipal land transfer tax under the proposal.
Second, the plan would create a new Principal Residence Rebate. Existing Toronto homeowners who sell their current home and purchase a new principal residence within the city would also be eligible for an exemption within the same price threshold.
Bradford said the measure could allow seniors who no longer need larger homes to downsize within Toronto, and families who first purchased condos to move into homes better suited to their needs as their households grow, while reducing land transfer tax costs during the move.
