Toronto Mayor Olivia Chow’s final version of the 2026 city budget promises to make life more affordable for Torontonians, while asking the city’s wealthiest residents to “pay their fair share.”
The budget was unveiled to the public on Sunday and builds on several previously announced affordability measures.
These include freezing transit fares, expanding property tax relief for small businesses, and limiting the property tax increase to 2.2 per cent, far lower than hikes seen in recent years.
In an open letter, Chow said the budget will expand the city’s morning meals program to an additional 155 schools. The expansion is expected to help families save nearly $900 per year on food costs.
Transit affordability remains a key focus, with fares frozen at $3.50 for a third consecutive year. The budget also reinforces a previously announced initiative to cap transit costs at 47 rides per month starting in September.
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In addition, it includes a multi-year plan to further reduce the fare cap to 40 rides per month by 2027.
One of the most notable elements of the budget is the 2.2 per cent property tax increase for homeowners. The hike is below the rate of inflation and significantly smaller than previous increases, including a 6.9 per cent increase in 2025 and a 9.5 per cent increase in 2024.
Small business owners are also set to receive additional relief. The budget proposes increasing the Small Business Property Tax Subclass discount from 15 per cent to 20 per cent, effectively providing small businesses with an additional five per cent tax cut.
While taxes will remain lower for many residents, the wealthiest two per cent of Torontonians are once again being asked to contribute more through the city’s luxury homes tax. This will be achieved by increasing the municipal land transfer tax on homes valued at $3 million or more.
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Beyond affordability, the budget also prioritizes public safety by continuing investments in Toronto Police Services and other safety initiatives.
The budget allocates an additional $93 million to support a multi-year frontline hiring plan that includes 911 operators, police officers, paramedics, firefighters, and crisis workers.
