After targeting luxury homes, Olivia Chow promises a lighter property tax hike in 2026

Yesterday, council approved Mayor Olivia Chow’s increase of the land transfer tax on luxury homes, which the city says will bring in an additional $14 million next year. But the mayor isn’t done yet. Chow has also confirmed that she plans to hike next year’s property tax—though by how much is anyone’s guess.

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“I haven’t finished the calculation,” the mayor recently told the CBC while, in the same breath, reassuring citizens that the raise wouldn’t be dramatic. Chow raised the tax by seven per cent this year and by 9.5 per cent in 2024. She has continually cited the $1.8-billion budget deficit that she inherited when elected as justification. Today, the city’s shortfall stands at $1 billion.

Though Chow’s land-transfer tax increase passed 17–7, several councillors—such as York Centre’s James Pasternak and Don Valley East’s Jon Burnside—were opposed, arguing that the policy would persuade wealthy Torontonians to flee to other jurisdictions.

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Mayoral candidate and Beaches–East York councillor Brad Bradford took it a step further, telling the CBC, “I will continue to advocate for practical common sense proposals. [The mayor] will continue to do the things she has been doing the past couple years. And in [October of 2026], Torontonians will have an opportunity to decide on the future of the city.”

Chow has not confirmed that she is seeking re-election. Her once-sterling approval rating (73 per cent in 2023) has tumbled to 43 per cent in recent months.

At a Queen’s Park press conference last week, Premier Doug Ford said he disagreed with any potential tax increases but would not interfere with city hall doings (for once), suggesting instead that Toronto’s October election would serve as a referendum of sorts.