On a $700,000 home purchase, Toronto collects $10,475 in municipal land transfer tax that Calgary does not collect—raising an important question about how each city funds its services.
Why Is Calgary Proposing a 15% Increase?
Calgary’s proposed 2027 budget calls for 15% more revenue from municipal property taxes on existing properties. The City points to population growth, greater demand for police, fire and transit services, and the cost of new and existing infrastructure. Its four-year $21-billion capital plan includes water systems, roads and other facilities. See Calgary’s official budget overview.
The proposed 15% figure describes municipal tax revenue, not an identical increase to every homeowner’s bill. Calgary estimates a typical homeowner would pay $37 more monthly in municipal property tax and $16 more for water and waste. That adds up to about $53 monthly if council approves the proposal without changes. Actual bills will depend on assessments and service use.
What Makes Toronto Different From Calgary?
Calgary does not collect any municipal land transfer tax when someone buys a home. Its proposed 2027 operating budget draws 49% from property taxes and 30% from sales of goods and services, with other income from fees, grants and investments. Alberta charges property and mortgage registration fees, but those go to the province. See Calgary’s operating revenue breakdown.
Toronto, meanwhile, charges its own land transfer tax on property purchases, on top of Ontario’s tax. This gives Toronto additional municipal revenue, but the amount fluctuates with real-estate sales. Toronto also supports extensive transit, housing and shelter services and must maintain aging infrastructure. These are different municipal obligations, not evidence that either city spends more efficiently. See Toronto’s approved budget overview.
How Much More Tax Does a Toronto Buyer Pay on the Same-Priced House?
Assumption: Two buyers each purchase an existing home for $700,000, pay 20% down and obtain a $560,000 mortgage. Neither qualifies for buyer rebates or owes non-resident taxes. The comparison applies 2026 government tax schedules and excludes lawyers’ fees, adjustments and other closing costs.
| Government charge | Calgary | Toronto |
|---|---|---|
| Provincial land transfer tax | $0 | $10,475 |
| Municipal land transfer tax | $0 | $10,475 |
| Land-title registration | $750 | Not included |
| Mortgage registration | $610 | Not included |
| Total shown | $1,360 | $20,950 |
The Toronto buyer pays $19,590 more in the government charges shown, excluding Toronto’s smaller registration fees. Only $10,475 goes to Toronto; the other $10,475 is Ontario’s provincial tax. Calgary has no comparable municipal charge. The figures follow Ontario’s land transfer tax rules, Toronto’s municipal transfer tax rules and Alberta’s land-title registration fees.
Could Toronto Avoid Calgary’s 15% Increase—or Eventually Need One?
Toronto’s 2026 budget includes $850 million in municipal land transfer tax revenue. Of that, $789 million supports operating costs, while the remainder goes toward capital financing. This money is already budgeted, not a new reserve available to prevent future property-tax increases. See Toronto’s 2026 budget presentation, page 51.
Inference: Toronto’s additional revenue stream could give it more financial flexibility than Calgary. But because most of that money goes toward operations, it may not fully fund infrastructure repairs. Toronto could still face pressure to raise annual property taxes to replace or repair aging infrastructure; that does not establish a 15% increase.
How Could Higher Property Taxes Affect a Mortgage?
Lenders include property taxes in a borrower’s gross debt service ratio, along with mortgage payments and heating costs. Higher taxes could leave less borrowing room for a buyer already near the lender’s limit. Actual mortgage qualification also depends on income, debts, rates and lender criteria. See federal mortgage qualification guidance.
An existing homeowner with a fixed-rate loan would not automatically see a higher mortgage rate because property taxes rise. But their monthly housing budget could tighten, and tax instalments collected by a lender could increase. Mortgage approval and what a household can comfortably afford remain different questions.
Calgary’s proposal does not mean Toronto will follow. Toronto’s additional transfer-tax revenue could help, but most of it supports day-to-day operations while infrastructure repairs still need funding. The question is whether Toronto can manage those pressures without much higher annual taxes.
Originally published: November 14, 2026
