Toronto/CMEDIA: Toronto’s 2026 staff-prepared budget was reportedly officially launched today continuing to prioritize affordability, mobility, community safety and sustaining services for residents.
“Families are feeling the squeeze from the high cost of living…Our 2026 Budget delivers real savings: free healthy meals for every child in our public schools, TTC fares frozen for the third straight year and seven-day-a-week library access at no cost…The 2026 budget continues our work to deliver a more affordable, safe and caring city,” Toronto Mayor Olivia Chow said.
Input from more than 11,000 residents participants who were in consultations held last Oct , was included in this year’s staff-prepared budget.
“This budget is about being responsible with public dollars…At a time when families and businesses are feeling real cost pressures, the City is focused on managing expenses carefully, enhancing community safety and investing in the basics that support good jobs and a strong local economy,” said Councillor Shelley Carroll (Don Valley North), Chair of the Budget Committee.
An operating budget of $18.9 billion and a 2026-2035 capital budget and plan of $63.1 billion, the largest 10-year capital plan in the City’s history was presented to the Budget Committee to address aging infrastructure and invest in housing, transit and water.
2026 Budget highlights
Highlights of the 2026 Budget include:
- More affordability programs including expanding the student nutrition program to all public schools, freezing TTC fares for the third year in a row, opening all library branches seven days a week and additional support for renters and homeowners.
- Investments in community safety supporting emergency response and neighbourhood safety initiatives.
- Fixing and maintaining aging infrastructure with major capital investment in housing, roads, bridges, transit and water.
- Responsible financial management including efficiencies, reductions and offsets to manage ongoing pressures.
Building on the progress made over the past two Budgets, this year’s Budget achieves a balanced budget and strengthens the City’s financial position.
The City’s Long-Term Financial Plan of $1.23 billion in operating support through the Ontario–Toronto New Deal, and a credit rating upgrade to AA+ that lowers borrowing costs, a multi-year approach of the 2026 Budget continues and includes $788 million in efficiencies, reductions and offsets to manage ongoing financial pressures.
The City continues to face significant challenges, despite these actions, including revenue softening in key areas, emergency services and transit pressures, inflationary increases and limited municipal revenue tools.
Property tax impacts and relief
Supported by a 0.7 percent increase in residential property taxes, the $18.9 billion operating budget (tax supported: $16.61 billion; rate supported: $2.25 billion) is helping to protect critical services while continuing to invest in priority areas.
Property tax relief programs remain available for eligible low-income seniors and people with disabilities, supporting more than 10,500 households annually. More information is available on the City’s Tax and Utility Relief webpage.
More than 28,000 small businesses would see a 15 percent property tax rate reduction for A 15 percent property tax discount for new multi-residential properties will also continue to promote housing availability.
Historic capital investment
Totalling $63.1 billion (tax supported: $42.6 billion; rate supported: $20.5 billion), the staff-prepared 2026-2035 capital budget plan prioritizes maintaining and repairing aging infrastructure and investing in housing, transit and water.
Transit and housing are continuously being supported by a dedicated 1.5 percent levy increase for the City Building Fund, endorsed by Toronto City Council.
An increase in levy of approximately 2.2 percent, or about $91.53 per year ($7.63 per month), based on the Municipal Property Assessment Corporation’s average current value assessment of a Toronto home ($692,140) is being represented by the combined residential property tax increase and City Building Fund.
Interim Toronto Water and Solid Waste rates
A 3.75 percent increase to Toronto Water and Solid Waste Management Services rates and fees and a 1.25 percent increase for participants in the Industrial Water Rate Program was approved by the city Council as part of the 2026 Budget process at its December meeting.
Ensuring the continuity of essential services while the 2026 operating and capital budgets are finalized, these interim rates took effect on Jan 1. The staff-prepared budget maintains the interim rates.
More information is available in the City’s news release.
Public participation in the 2026 Budget process
Besides the public consultations held in Oct, Toronto residents are encouraged to provide their feedback on the 2026 Budget by:
- Joining a telephone town hall with Mayor Olivia Chow and the Chair of the Budget Committee, Councillor Shelley Carroll (Don Valley North). Call 1-833-380-0687 toll free on:
- Wednesday, January 14, from 7 to 8:30 p.m.
- Thursday, January 15, from 7 to 8:30 p.m.
- Speaking to members of the Budget Committee virtually or in person on Tuesday, January 20 and Wednesday, January 21. Participants must register before 4:30 p.m. on Monday, January 19 and indicate their preferred time and location. Locations, times and registration instructions are available on the City’s 2026 Budget webpage.
- Submitting written comments to the Budget Committee to be included in the public record by emailing buc@toronto.ca.
Budget timeline and Special City Council meeting
Toronto mayor is required by the Provincial legislation to present a budget to City Council by Sunday, Febr 1, with City Council scheduled to consider the 2026 Budget at a special meeting on Tues, Feb 10.
The presentation from today’s 2026 Budget launch by City Manager Paul Johnson and Chief Financial Officer and Treasurer Stephen Conforti is available on the City’s website .
More information about the 2026 Budget is available on the City’s 2026 Budget webpage.
