TORONTO - Mayor Olivia Chow says the wealthiest 2% of property buyers - just half of one percent of residents - can chip in more to make life more affordable for families.
“In uncertain times, as the cost of living rises, families need a break,” said Mayor Chow. “These funds will help save families $1,200 on groceries and transit by funding the school food program and not raising TTC fares three years running.”
“People who can afford a five or ten million dollar property can chip in more,” said Mayor Chow.
Toronto’s graduated rates on luxury property purchases were created in 2023 and apply to only 2% of all property buyers. The Mayor has a motion to Executive Committee that will incrementally raise the rates luxury property buyers pay. In total, this will bring in $152 million in 2026.
“We can do more when family budgets are stretched,” said Mayor Chow. “Everyday taxpayers and families will get a break in my 2026 budget as we ask the wealthiest 2% of property buyers to chip in a bit more.”
BACKGROUND
- Only the purchaser of a luxury property pays. The rates on luxury properties were created in 2023 (council item here).
- In 2024, this applied to only 1.9% of all properties sold, and brought $138.2 million in revenue to the City.
- The Mayor’s Executive Committee motion raises the rates between 0.9% and 1.1% on the existing graduated rates (see table below). The new rates are projected to bring an additional $13.8 million (starting April 1), bringing the projected 2026 total to $152 million.