Toronto approves budget, property tax hike
Toronto City Council has approved the city's 2026 budget, which includes a 2.2% increase in property taxes. Mayor Chow stated that the budget prioritizes affordability for residents while outlining the city's financial plans for the upcoming year.
- The 2.2% property tax increase is a combination of a 0.7% operating levy for residential and industrial properties and a dedicated 1.5% increase for the City Building Fund, which supports transit and housing investments. For the average Toronto home valued at $692,140, this amounts to an additional $91.53 per year. - This tax hike is significantly lower than the increases of 9.5% in 2024 and 6.9% in 2025, a move positioned as a response to resident concerns about the high cost of living. - The $18.9 billion operating budget includes a third consecutive freeze on TTC fares. It also introduces a monthly fare capping program, which will make all rides free after 47 paid trips in a calendar month, starting in September 2026. - A key focus of the budget is on affordability and includes initiatives such as expanding the student nutrition program to all public schools, providing free healthy meals for 115,000 children in city-run camps, and increasing support for renters. - The budget also allocates funds to enhance community safety, with a plan to hire more police officers, firefighters, and paramedics. The Toronto Police Service will receive a funding increase of $93.8 million to support a multi-year hiring plan. - To support local businesses, the budget increases the property tax discount for small businesses from 15% to 20%. - The 10-year capital budget and plan totals $63.1 billion, with a significant portion (53%) dedicated to maintaining and repairing aging infrastructure, alongside major investments in transit, housing, and stormwater management. - The budget passed with few major changes from Mayor Chow's proposal, and she did not use her veto powers to alter any amendments made by the council.
