This year’s city budget could mean a rise in taxes for some Toronto residents.
On Monday morning, Toronto Mayor Olivia Chow shared a preview of the proposed Toronto 2025 budget, which featured a tax hike for Toronto homeowners of 6.9 per cent.
This hike breaks down into two parts: a 5.4 per cent property tax increase, and the annual 1.5 per cent “city building fund” tax that began in 2016 and pours into major infrastructure projects in the city.
All together, this increase would cost the average Toronto homeowner $268 a year, according to a press release shared by the city.
Also included in the proposed budget is a base property tax increase of 2.7 per cent for multi-residential properties, 2.7 per cent for commercial properties, and 5.4 per cent for industrial properties.
Small businesses will continue to receive a 15 per cent reduction in property tax rates, a tax break that has been in effect since 2021 as a way to support the more than 25,000 small businesses in Toronto.
PROPOSED BUDGET SPENDING INITIATIVES
The 2025 operating budget of $18.8 billion would go towards a number of efforts, according to city staff.
The city plans to prioritize areas including increasing transit service hours by 5.8 per cent, adding more traffic agents to address blocked intersections, and adding nearly 300 Emergency Services positions such as firefighters, police, and paramedics.
Chow plans to invest $4.9 billion into transit and mobility, $2 billion in key projects for community services, and $2.9 billion into other investments, including flood protection and net zero initiatives towards Canada’s climate action plan.
The city also aims to address the rising food insecurity issue by spending budget dollars to feed 8,000 more students through school food programs, feed youth through CampTO food programs, and support 300 more households through the Rent Bank program.
Two telephone town halls for Toronto residents to participate in and share feedback on the proposed budget will be held on Jan. 15 at 7 p.m. and Jan. 23 from 7 p.m. Residents can also address the Budget Committee in person at select public meetings. For more information, visit here.
Chow is set to present the 2025 budget proposal to city council on Feb. 11, where it will then be voted on.
