"Mayor Olivia Chow wants Torontonians who can afford homes over $3 million to pay more in land transfer taxes in 2026. Changes proposed by Chow Tuesday would see the so-called luxury homes tax rate increase on houses purchased from $3 million to more than $20 million, with the change in rate growing as homes get more expensive. The luxury homes tax is a higher land transfer tax for multimillion dollar properties approved in 2023."
"The mayor says the proposed increases will rake in an extra $13.8 million in 2026, bringing the projected total revenue from the luxury homes tax up to $152 million. As the city shifts full on into budget deliberation mode, the mayor made the announcement before she brings the proposal to executive committee next week. The city's budget chief, Coun. Shelley Carroll, has already said the fiscal document will be "leaner" in 2026."
"The mayor says the funds will help cover things like school nutrition programs and a recently announced third annual freeze on TTC fares. How the tax rate could change In 2024, the proposed tax increase would have impacted 1,164 home sales, according to the mayor. Here's a breakdown of how the tax rate will change for different properties. Homes valued between $3 million and $4 million would see a 0.9 per cent change in rate, to a total 4.40 per cent."
The city will increase the luxury homes land transfer tax on properties purchased for $3 million to more than $20 million, with rates rising progressively as prices increase. The change is projected to add $13.8 million in 2026 revenue, bringing total luxury homes tax receipts to $152 million. The increase targets the wealthiest two per cent of property buyers, about half of one per cent of residents, to help fund city services. The funds are earmarked for school nutrition programs and a third annual freeze on TTC fares. In 2024, 1,164 home sales would have been affected.
Read at www.cbc.ca
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