Toronto property taxes are set to rise by 2.2% in 2026

Mayor Olivia Chow plans a 2.2 per cent property tax increase for Toronto's 2026 budget, made up of a 0.7 per cent general residential hike and a previously approved 1.5 per cent city building fund increase; the draft budget will be tabled this week and is scheduled to be finalized in February.

Mayor Olivia Chow plans to include a 2.2 per cent property tax increase in Toronto's 2026 budget. That total combines a 0.7 per cent increase to the residential property tax rate and a previously approved 1.5 per cent annual increase for the city's building fund. City officials say the municipality is facing an estimated $1 billion operating shortfall and weaker revenues from real estate taxes, transit fares and development charges. The draft budget will be tabled this week and is to be finalized in February. Key facts: - The proposed 2.2 per cent increase includes a 0.7 per cent general residential tax rise and a 1.5 per cent boost to the city building fund. - The city building fund increase has been described as funding for transit and housing infrastructure. - Officials report about a $1 billion operating shortfall and lower revenues from property and transit sources entering 2026. - The draft budget will be tabled this week, must be presented by Feb. 1 at the latest, councillors have up to 30 days to consider it, and a special council meeting is scheduled for Feb. 10 to consider passage. Summary: The proposed 2.2 per cent tax rate will form part of Toronto's 2026 budget and combines a small general property rate increase with a planned infrastructure-focused building fund increase. Council review and formal approval are expected in February, with a special council meeting on Feb. 10 scheduled to consider the final budget.