Toronto/CMEDIA: Considering reportedly the 2026 rate- and tax-supported operating and capital budgets proposed by Mayor Olivia Chow, the 2026 Budget prioritizes affordability for residents, strengthens community safety, and maintains reliable frontline services, and City’s multi-year approach to long-term financial sustainability.
“City Council adopted a 2026 Budget…delivers real savings for families…strengthens community safety and invests in the housing, transit and infrastructure Toronto needs. Together, we’re building a more affordable, safe and caring city,” Olivia Chow said.
Included in the budget is a combined residential property tax increase and City Building Fund levy increase of 2.2 percent.
A Mayoral Decision has been issued by the Olivia Chow indicating she will not exercise her veto and has shortened the 10-day period for the Mayor to veto any amendments.
As a result, the 2026 Budget is now deemed adopted.
A Mayoral Decision outlining this has been issued and is available on the City’s Mayoral Decision webpage.
The 2026 Budget consists of an $18.9 billion operating budget ($16.61 billion tax supported; $2.25 billion rate supported) and an historic $63.1 billion 10-year capital budget and plan (2026–2035), the largest 10-year capital plan in the City’s history.
Included in the operating budget is $788 million in efficiencies, reductions and offsets to address financial pressures.
Input received from more than 25,000 residents through consultations held in Oct, telephone town halls, speakers to the Budget Committee and written submissions in Jan helped to inform the 2026 Budget,
Key investments in the 2026 Budget include making life more affordable which are achieved as follows:
- For a third consecutive year by freezing TTC fares and expands service
- Starting in Sept to Introduce monthly fare capping after 47 paid trips which provides 2.1 million free rides
- Starting this summer year-round provision of more weekday hours at Toronto Public Library branches opening all 100 library branches seven days a week,
- Continues the Rent Bank, helping 2,800 households stay housed
- By Expanding the Student Nutrition Program, providing nutritious food to approximately 330,000 students per day in 841 schools
- Supporting food programming at City-run camps, providing nutritious snacks to approximately 115,000 children per day at 185 camp locations city-wide
- Supporting new rental housing supply through a continued 15 percent property tax discount for new multi-residential properties
- Supporting this year 27,000 new rental homes including 9,700 rent-controlled and affordable units
- Maintaining a new multi-residential property tax subclass for newly built purpose-built rental housing, providing a 15 per cent property tax reduction
Supporting community safety is provided by
- Addition of 258 police and paramedics emergency positions
- Expanding crisis support on the TTC through Toronto Community Crisis Service
- Hiring 16,000 young people for jobs in recreation, special events and museums, helping youth build skills and gain job experience
Keeping Toronto moving:
- Hires 27 additional Traffic Agents to improve traffic management and reduce travel times
- Continues investment in smart street signal technology to keep people moving
Providing excellent community services:
- Supports low-income vulnerable residents with 1,000 air conditioning units
- Enhances the basement flooding protection subsidy program and introduces a new furnace replacement program to help homeowners
- Strengthens renter protections through RentSafeTO, including colour-coded ratings for 3,600 buildings
- Increases the property tax reduction for small businesses by five per cent, for a total reduction of 20 per cent, benefiting more than 28,000 small businesses and supporting local jobs and vibrant communities
The 2026 Budget builds on progress made over the past two budgets and reflects ongoing financial stability measures, including $1.23 billion in operating support through the Ontario-Toronto New Deal and the City’s recent credit rating upgrade to AA+.
In spite of these actions, the City continues to face significant financial challenges including revenue softening in key areas, emergency services and transit pressures, inflationary increases and limited municipal revenue tools.
Property taxes and relief programs
The operating tax-supported budget is supported with a 0.7 percent operating levy increase for residential as well as industrial properties and a 0.35 percent increase for multi-residential and commercial properties.
A levy increase by1.5 percent for the City Building Fund continues to support transit and housing investments.
The combined residential property tax increase and City Building Fund levy represent an increase of 2.2 per cent, or $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).
Property tax relief programs remain available for eligible low-income seniors and people with disabilities, supporting an anticipated 11,500 households this year. More information is available on the City’s Tax and Utility Relief webpage.
Capital Renewal
A total of $63.1 billion ($42.6 billion tax supported and $20.5 billion rate supported) is included in the 2026–2035 capital budget and plan.
focusing on fixing and maintaining aging infrastructure, the 10-year plan dedicates 53 percent to state-of-good-repair projects.
Major investments continue in transit and mobility, housing and community improvements, and stormwater management and basement-flood mitigation.
Toronto Water and Solid Waste rates
The 2026 Budget maintains the interim rates approved by City Council in Dec to support critical services such as waste management and water treatment by:
- A 3.75 per cent increase to Toronto Water and Solid Waste Management Services rates and fees
- A 1.25 per cent increase for participants in the Industrial Water Rate Program
More information is available in the City’s news release webpage.
Additional information
More information about the 2026 Budget, including Budget Notes, Briefing Notes and presentations, is available on the City’s 2026 Budget webpage.
https://www.toronto.ca/city-government/budget-finances/city-budget/?WT.rd_id=%2Fbudget
