Toronto votes on October 26, 2026, and one of the sharpest housing debates in the mayoral race is about something every buyer pays on closing day: the Toronto land transfer tax. If you're buying in the city this year or next, here is what the candidates are proposing and what the tax costs today.
What are the mayoral candidates saying about the land transfer tax?
Brad Bradford is proposing to scrap the City of Toronto's municipal land transfer tax on homes under $1.1 million. His campaign says buyers who own more than one Toronto property would not qualify, so the relief is aimed at people buying a home to live in.
Olivia Chow's campaign says the plan would leave a $300 million hole in the city's budget with no clear way to pay for it. Chris Alexander agrees the tax is too high but wants broader reforms at city hall first.
This is a campaign proposal only. Nothing changes for buyers today. The tax still applies to every purchase in the City of Toronto.
What does the data say about homes under $1.1 million?
The proposed threshold covers most of the market:
In August 2026, 1,767 homes sold in the City of Toronto at an average price of $979,684, under the $1.1M line.
About 57% of those sales were condos, with apartments averaging roughly $652,000 and condo townhouses about $712,000.
Source: Toronto Regional Real Estate Board (TRREB), Market Watch, August 2026.
What is the Toronto first-time home buyer rebate?
Qualifying first-time buyers can claim:
Up to $4,475 back on the Toronto municipal land transfer tax
Up to $4,000 back on the Ontario land transfer tax
Up to $8,475 combined
To qualify, you must be a Canadian citizen or permanent resident, you must never have owned a home anywhere in the world, and you must move in within nine months of closing.
Even with both rebates, a first-time buyer purchasing at $1.1M still pays roughly $28,475 in combined land transfer tax.
Why land transfer tax is a cash-flow problem, not just a cost
The part many buyers miss is timing. Land transfer tax, legal fees and other closing costs are due on closing day, out of pocket. They cannot be added to your mortgage, and they come on top of your down payment.
For many first-time buyers, this cash requirement is the real barrier, more than the monthly payment. Budget for closing costs early, before you fall in love with a home.
The other side of the debate
Supporters of the tax point out that it funds city services, and that any cut has to be paid for through other revenue or spending. Supporters of reform argue that a large upfront tax makes it harder for residents to put down roots in the city they already live in. Both points deserve a fair hearing, and I'm not here to tell you how to vote.
Frequently asked questions
Do I pay land transfer tax twice in Toronto?
Yes. Buyers of property in the City of Toronto pay both the Ontario land transfer tax and the Toronto municipal land transfer tax.
Can I add land transfer tax to my mortgage?
No. Land transfer tax is a closing cost paid in cash on closing day, in addition to your down payment.
Has Toronto's land transfer tax been eliminated?
No. Eliminating it for homes under $1.1 million is a campaign proposal. The current rules apply until any change is made.
When is the Toronto municipal election?
Election day is October 26, 2026. Advance voting runs October 6 to 11.
Who qualifies for the first-time buyer land transfer tax rebate?
Canadian citizens and permanent residents who have never owned a home anywhere in the world and who occupy the home as their principal residence within nine months of closing.
Planning to buy in Toronto?
Whether you're a first-time buyer or moving up, the right plan starts with knowing your real cash-to-close number. I've helped Toronto buyers for over 15 years, and I'm happy to walk you through your closing costs and rebate eligibility.
Have questions?
Want to know more about Toronto Land Transfer Tax and the 2026 Election: What Home Buyers Need to Know? Send me a message and I'll get back to you within 24 hours.