On December 17, 2025, city council approved Mayor Olivia Chow’s decision to increase the land transfer tax on luxury homes, a move the city estimates will generate an additional $14 million in revenue next year. The mayor has also signaled that further tax increases are on the horizon. Chow confirmed she intends to raise property taxes again in 2026, though the exact amount has yet to be determined.

“I haven’t finished the calculation,” Chow told CBC recently, while emphasizing that the increase would not be substantial. Property taxes rose by seven per cent this year, following a 9.5 per cent increase in 2024. The mayor has consistently pointed to the $1.8-billion budget deficit she inherited upon taking office as justification for the hikes. That shortfall has since been reduced to approximately $1 billion.

The land transfer tax increase passed council by a 17–7 vote, though several councillors—including York Centre’s James Pasternak and Don Valley East’s Jon Burnside—voiced opposition. They argued that higher taxes on luxury homes could prompt affluent residents to relocate outside the city.

Beaches–East York councillor and mayoral candidate Brad Bradford criticized the mayor’s approach, telling CBC, “I will continue to advocate for practical, common-sense proposals. The mayor will continue doing what she’s done over the past couple of years. And in October 2026, Torontonians will have the opportunity to decide the future of the city.”

Chow has not confirmed whether she will seek re-election. Her approval rating, which stood at 73 per cent in 2023, has fallen to 43 per cent in recent months.

Speaking at a Queen’s Park press conference last week, Premier Doug Ford said he opposes any further tax increases but would not intervene in municipal affairs, suggesting instead that Toronto’s October election would effectively serve as a referendum on the mayor’s fiscal policies.