Ford made the announcement Wednesday after a meeting with the Toronto Real Estate Board. He said the tax, which earns the city more than $300 million a year in revenue, is unfair and hurts Toronto's housing market.
The cut Ford is proposing represents about $50 million in annual revenue to the city.
Ford said he would offset the lost revenue with money saved by contracting out garbage on the east side of the city. His eventual goal would be the complete removal of the tax, which is charged to anyone who buys a home or business in the city.
Ford said the MLTT is an "unfair tax" that hurts the economy and the city's housing market.
On a house with a sale price of $500,000, the purchaser would pay $5,725 to the city.