TORONTO — City of Toronto staff are preparing to unveil the proposed 2026 municipal budget, which includes a 2.2 per cent property tax increase for Toronto property owners. The proposal consists of a 0.7 per cent general property tax increase and an additional 1.5 per cent contribution to the City Building Fund, according to the office of Mayor Olivia Chow.
If approved, this would mark the lowest property tax increase during Mayor Chow’s tenure, following larger increases of 9.5 per cent in 2024 and 6.9 per cent in 2025. City officials say the lower increase reflects a deliberate effort to balance fiscal responsibility with affordability, particularly as residents and businesses continue to face cost-of-living pressures.
City Budget Chief Shelley Carroll described the 2026 budget as “leaner” and more focused on efficiency, noting that the reduced tax increase is the result of long-term planning, targeted cost controls and division-specific efficiency targets. The city has also implemented measures such as a hiring freeze for non-essential roles and cost-saving reforms across departments.
Mayor Chow said the proposed budget is aimed at protecting essential services while being responsible with public funds, emphasizing that the city is prioritizing affordability, community safety and investments in core services that support jobs and economic stability.
The 2026 budget is also expected to include a continued freeze on TTC fares and the introduction of a monthly fare cap for transit riders, supported in part by a one-time reserve draw. City officials say these measures are designed to encourage ridership and ease transportation costs for residents.
Toronto City Council and the Toronto Transit Commission (TTC) have acknowledged ongoing challenges, including lower-than-expected ridership, and have committed to improving service and accessibility while managing costs carefully.
City staff are scheduled to provide a detailed briefing on the proposed 2026 budget at a news conference, with further public updates expected as the budget process continues.
The proposed budget comes ahead of the upcoming municipal election period, as city leaders signal a shift toward tighter spending and a renewed focus on affordability for Toronto residents.