A 2.2 per cent property tax increase has been proposed in the city’s 2026 budget, and a lot of Torontonians appear to be on board.
Toronto Mayor Olivia Chow is keeping her late 2025 promise to deliver a softer tax hike in the new year, with the lowest increase since 2020.
The proposed uptick comprises a 0.7-per cent hike to the residential property tax and a 1.5-per cent increase to the city building levy. Based on the average home assessment of $692,140, according to the City of Toronto’s budget launch report, the change would amount to an increase of just under $92 per household.
“Families are feeling the squeeze from the high cost of living,” the mayor said in a statement on Thursday. “That’s why I’m focused on making life more affordable for Toronto families.”
If approved, the 2026 increase would be the smallest so far during Chow’s time in office since she was elected in 2023. Her 2024 budget saw a 9.5-per cent increase, the highest in 25 years, as the city faced a $1.8 billion deficit. Meanwhile, her 2025 budget saw a 6.9-per cent increase.
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Torontonians online seem to be reacting positively to the relatively lower increase.
“Toronto property taxes are comparatively low. Fair increase if you ask me,” one user wrote on Reddit.
“I think 2% is reasonable, no one could expect 0,” another chimed in. “The 23% tax increase over the past 3 years definitely hurt a bit, the 2.2% is much appreciated at this time.”
“So long as I see real, tangible improvements made to city services,” another said.
Chow also says the 2026 budget makes way for free meals for children in public schools, TTC fares being frozen for the third straight year, daily library access at no additional costs, and better support for renters and homeowners.
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“The 2026 budget continues our work to deliver a more affordable, safe and caring city,” she said.
This could be Chow’s final budget as mayor, with the October municipal election approaching and no confirmation yet on a re-election bid.
