Toronto Residents Say City’s Reliance on Land Transfer Tax Is Fueling the Housing Affordability Crisis

New polling shows growing frustration as Council considers yet another MLTT hike

TORONTO, Dec. 04, 2025 (GLOBE NEWSWIRE) -- As Toronto City Council considers a proposal to increase the Municipal Land Transfer Tax (MLTT) on higher-value homes, new Ipsos polling conducted for the Toronto Regional Real Estate Board (TRREB) shows that 416 residents are deeply concerned about housing affordability and believe the City is already relying far too heavily on this tax. More than half of Toronto residents (56 per cent) say the City depends too much on the MLTT, placing it alongside property taxes as one of the most overused municipal revenue tools. At the same time, residents overwhelmingly believe government-imposed housing taxes are worsening affordability, with 88 per cent agreeing that housing-related taxes are already too high.

“Municipal land transfer taxes take thousands of dollars out of the pockets of Toronto buyers,” said TRREB President Elechia Barry-Sproule. “With average home prices now exceeding $1 million, the City’s MLTT alone adds more than $17,000 to upfront closing costs of a home. Raising this tax will not make our City more affordable.”

The MLTT was first introduced in Toronto in 2008. The City is the only municipality in Ontario that has a second land transfer tax, in addition to the provincial land transfer tax. In total, a buyer of an average-priced home will pay $34,000 in land transfer taxes as an upfront closing cost, making Toronto one of the highest-taxed housing jurisdictions in North America.

“Each time the City has increased the MLTT, supporters have claimed the additional revenue would help make rental and other forms of housing more affordable,” said TRREB CEO John DiMichele. “However, there is no data or evidence showing that higher housing taxes improve affordability. In fact, both market trends and the lived experience of homebuyers point to the opposite outcome.”

According to the Ipsos poll, Toronto residents are deeply concerned about the state of affordability in the city. Key findings included:

• 88 per cent of 416 residents are concerned about housing affordability.
• Concern is even higher among vulnerable groups, including 94 per cent of low-income households (<$40,000/year) and 92 per cent of young people (18-34) .
• Four in ten (41 per cent) of 416 residents say they are likely to leave Toronto in the next 5 years due to affordability pressures.
• 81 per cent agree that high development fees and taxes contribute to the housing affordability crisis.
• 82 per cent are frustrated by the lack of progress on improving housing affordability.
• 78 per cent support lowering taxes for all homebuyers.
  
  

“Torontonians clearly recognize that high taxes are making housing challenges worse,” added Barry-Sproule. “Young people and families are increasingly being priced and taxed out of the city. If Toronto City Council is serious about improving affordability, the first step should be lowering taxes for first-time homebuyers, not raising the MLTT yet again.”

Toronto’s MLTT rebate for first-time homebuyers sits at $4,475 and has not been updated since 2016. Today, the land transfer tax bill for a first-time buyer purchasing an average-priced home in Toronto is over $25,000. By comparison, when the MLTT was first introduced in 2008, a first-time buyer would have paid no MLTT at all after applying the rebate. The MLTT suppresses housing supply by adding thousands of dollars in costs at the time of title transfer when a property is sold. Increasing taxes on homes valued at over $3 million discourages owners from moving, reducing the number of move-up properties available. With fewer higher-end homes coming onto market, higher-income buyers are more likely to compete in lower price ranges, intensifying pressure on first-time buyers.

“Toronto homebuyers already face the highest land transfer tax burden in North America,” said Barry-Sproule. “Another increase to the MLTT will only make life more difficult for residents and move us further away from building an affordable, vibrant city. We urge City Council to reject this latest tax increase. After 17 years, the Toronto Land Transfer Tax has not made our City more affordable.”

When young people and families are priced out of Toronto, the long-term consequences extend far beyond housing. As more of the next generation moves elsewhere, businesses will face growing challenges attracting and retaining the skilled talent they need to succeed which will have an impact on Toronto’s economic competitiveness and may undermine the City’s future growth and innovation.

About the Study:

These are some of the findings of an Ipsos poll conducted between Oct 17 – 30, 2025, on behalf of TRREB. For this survey, a sample of 2,000 GTA residents aged 18 years and over was interviewed. The poll is accurate to within ±2.7 percentage points, 19 times out of 20, had all GTA adults been polled.

To review Ipsos’ Factum, click here.
For or more information on this news release, please contact: Sean Simpson, Senior Vice President, Canada, Public Affairs, sean.simpson@ipsos.com

About TRREB: 

The Toronto Regional Real Estate Board is Canada’s largest real estate board, with over 70,000 residential and commercial professionals connecting people, property, and communities.

Media Inquiries:

For all media inquiries, please email media@trreb.ca.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.