Ontario Premier Doug Ford says he will not intervene in Toronto Mayor Olivia Chow’s plan to raise the municipal land transfer tax on luxury homes, dismissing a request from the Toronto Regional Real Estate Board (TRREB) to overrule the proposal. Speaking to Global News, Ford reiterated his opposition to the tax increase but said the decision belongs to Toronto voters in the next municipal election.
The dispute began when TRREB sent a letter to Ford urging provincial action, arguing that Toronto is already one of the most heavily taxed housing markets in North America. The board said additional pressure from higher land transfer taxes would worsen affordability and reduce housing supply. Chow’s plan would increase taxes on properties valued at three million dollars or more, with city staff estimating the measure would generate roughly $152 million based on last year’s 1,164 sales in that price bracket.
Ford told reporters at Queen’s Park that although he personally disagrees with raising the tax, he will not override the city’s authority. Housing Minister Rob Flack also voiced concerns, saying he wants Toronto to reconsider and stressing that new taxes are the wrong approach during a cost-of-living crisis. According to Global News, Flack argued that increasing financial burdens on residents contradicts efforts to improve affordability across Ontario.
Mayor Chow defended the proposal, saying it affects only the wealthiest segment of buyers and leaves 98 percent of home purchasers untouched. She argued that people purchasing multi-million-dollar homes can reasonably contribute more toward stabilizing the city’s finances. Chow also pointed to steady sales of high-end properties over the past three years, even as other areas of the market weakened, suggesting the luxury segment can absorb the change.
TRREB maintains that higher taxes on expensive homes discourage owners from selling, which limits supply at the upper end of the market and puts additional pressure on mid-range price categories. Fewer luxury listings, the board argues, could push higher-income buyers into lower price brackets, ultimately making homeownership more difficult for first-time buyers. Chow disputes that claim, saying demand for luxury properties has remained consistent regardless of broader economic shifts.
