Toronto City Council Approves 2026 Budget
Toronto's City Council has approved the city's 2026 budget, which Mayor Olivia Chow stated prioritizes affordability. The budget allocates new funding toward key services including housing and transit, with the stated goal of addressing pressing urban challenges for residents.
- The approved 2026 operating budget totals $18.9 billion, supported by a 2.2% residential property tax increase, which is significantly lower than the 9.5% increase in 2024 and 6.9% in 2025. For the average Toronto home assessed at $692,140, this amounts to an additional $91.53 per year. - The budget allocates a total of $3 billion in funding to the Toronto Transit Commission (TTC), which includes a $1.48 billion subsidy from the city. This funding supports a third consecutive year of fare freezes and introduces a new fare capping policy, which will provide free rides after 47 trips in a month, starting in September 2026. - The Toronto Police Service will receive a $93.8 million increase, bringing its total net budget to $1.43 billion. This increase is intended to fund a previously approved five-year hiring plan and pay raises for officers. - A 10-year capital budget of $63.1 billion was also approved, with 53% dedicated to maintaining and repairing aging infrastructure. Major investments are planned for transit, housing, and stormwater management. - To support housing affordability, the budget includes a continued 15% property tax discount for new multi-residential properties, which is expected to support the creation of 27,000 new rental homes. - The budget allocates funds to expand the Student Nutrition Program, aiming to provide daily nutritious food to about 330,000 students across 841 schools. It also supports food programs at city-run camps for approximately 115,000 children. - Small businesses will benefit from a five percent increase in the property tax reduction, bringing the total reduction to 20% for more than 28,000 businesses. - The budget also includes funding to hire hundreds of new paramedics over a multi-year plan and to enhance the city's RentSafeTO program, which strengthens protections for renters.
