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.
1. Multi-Property Owners and Commercial Buyers Would Not Qualify
Under the proposal, investors and landlords who own more than one Toronto property, as well as corporations and commercial buyers, would not qualify for the exemption.
For the portion of a home’s price above $1.1 million, existing Municipal Land Transfer Tax rates would continue to apply. Current higher rates on homes over $3 million would also remain in place.
Applicants for the Principal Residence Rebate would need to have sold their existing Toronto home within the previous six months, or signed a firm and binding agreement of sale for that property.
Bradford said the tax relief would apply to purchase agreements dated on or after September 29, 2026, but the policy would still require Toronto City Council approval.
According to campaign estimates, the proposal would reduce Municipal Land Transfer Tax revenue by about $300 million per year. Bradford said the lost revenue would be covered through his broader City budget reform plan, including changes to how capital projects are financed and revenue from a proposed 100-per-cent City-owned public water utility.
As Toronto’s October 26 municipal election approaches, housing affordability and municipal taxes continue to be major policy issues for candidates in the mayoral race.
（LJI by Yuanyuan）
