Toronto City Hall is banking on a real estate market rebound in 2026, budgeting for a significant increase in land transfer tax revenue despite recent sales hitting a 25-year low. The city projects $850 million in revenue, up from a revised $805 million in 2025, driven by higher taxes on luxury homes (over $3 million) and anticipated market activity. However, officials acknowledge the volatility of this revenue stream, contrasting it with the near $1.2 billion peak during the city’s hot market five years prior. Declining development charges are also a concern, impacting infrastructure funding. The city faces tough choices: raise taxes or cut services. Budget Chief Shelley Carroll sees the 2026 forecast as ‘conservative and rational.’ For a deeper dive into the numbers and analysis, read the full article on The Star.
Source: Read the original article
