Toronto’s 2026 budget proposal includes 2.2 per cent property tax hike, TTC fare caps

TORONTO — The City of Toronto is proposing several measures to address the high cost of living in its budget for 2026, including a much lower property tax increase compared to previous years and caps on public transit fares.

The city says the operating budget of $18.9 billion would invest in transit, emergency services and social supports.

The budget proposal includes a 2.2 per cent property tax hike, compared to a 6.9 increase last year and a 9.5 increase in 2024.

The city says this year’s property tax hike is low compared to other municipalities in the Greater Toronto Area, and comes out to about $91.53 more a year for an average Toronto home with an assessed value of $692,140.

The proposal also includes a freeze on Toronto Transit Commission fares for the third straight year, including a fare cap at 47 rides in a calendar month this year and 40 rides in 2027.

The budget also has measures to provide more free meals to students, open libraries seven days a week and add more funding to hire hundreds of new police officers and paramedics in a multi-year plan.

Mayor Olivia Chow says the budget aims to help Torontonians who feel stressed about keeping up with high costs.

“After paying rent or your mortgage, groceries and all your bills, there’s not much left at the end of the month,” Chow said in a press release Thursday.

“Families are feeling the squeeze from the high cost of living. That’s why I’m focused on making life more affordable for Toronto families.”

The budget will by considered by city officials and will be open to public feedback until Jan. 24, before Chow presents the final budget at the end of the month.

This report by The Canadian Press was first published Jan. 8, 2026.

The Canadian Press