Toronto homeowners face a 2026 property tax increase of about 2.2%, made of 0.7% for City operations and 1.5% for the City Building Fund. On an average assessed home of $692,140, the City puts that at $91.53 a year, or $7.63 a month. The whole bill on that home is about $5,311, so it pays to plan for it. This article is about the practical side.
What the increase means each month
The 2026 residential rates add up to 0.767311%. Multiply by $692,140 and the bill is $5,311, or $442.58 a month. The increase is about $7.63 of that.
The 2.2% applies to the City’s share, and the education share does not change, so the change in the whole bill is smaller than the headline. Put your own assessed value into the property tax calculator for your figures.
Setting the money aside
Owners who pay from a monthly budget can divide the yearly tax by twelve and move that amount into savings each month. Or they can enrol in the City’s pre-authorized plan, which withdraws from the bank directly.
Here is a worked example with invented interim amounts. Suppose the 2026 tax is $5,311 and the March, April and May instalments were $1,300 each. The final bill then asks for $1,411, or about $470 in each of three instalments. Interim bills use the previous year’s taxes, so yours will differ.
The 2026 calendar
Council adopted the budget on February 10, 2026. For owners not on a plan, interim instalments were due March 2, April 1 and May 1. The final bill went out in May and reflects the 2026 rates less what was already paid. Its instalments were due July 2, August 4 and September 1.
Those dates have passed. The City posts new ones each year when interim bills go out.
Choosing a plan
The pre-authorized program has three options: 2, 6 or 11 payments a year. On $5,311 the two-payment plan means about $2,655 twice. The eleven-payment plan, running from February 17 to December 15 in 2026, is about $483 a payment. You can also pay through online banking with your 21-digit roll number, by cheque or in person.
What a late payment costs
The City charges 1.25% on an overdue amount on the first day of default and on the first day of each month after, while it stays unpaid. That is 15% a year, and the City says the charges cannot be waived. An instalment of $903.67 paid a day late costs $11.30.
Testing a bigger increase
Nobody knows next year’s budget. The City rate and fund together are about $4,252 on the average home. A 2% increase on that adds about $85, 5% adds about $213 and 8% adds about $340. These are rough, since the percentage applies to the City’s share only.
Even a repeat of 2024 would be about $28 a month, which a household can plan for. The budget calculator shows how that fits your month.
Checking your assessment
MPAC sets the assessed value, and its valuation date is still January 1, 2016. The City says 2026 assessments stay at the fully phased-in 2016 value. So a gap between your assessment and today’s market price is normal. A wrong size or an unbuilt renovation on the record is worth a challenge.
For homes, file a Request for Reconsideration with MPAC first. Then appeal to the Assessment Review Board within 90 days of its recommendation.
Help with a heavy bill
Low-income seniors and people with disabilities can apply for the Property Tax Increase Cancellation Program or the Deferral Program. The 2026 household income limit is $62,000, and cancellation also needs an assessment below $975,000. Applications close November 2, 2026, and you reapply each year.
Small businesses in the small business subclass got a property tax reduction of 20% in 2026, up 5 points. Check the City’s rules before assuming a property qualifies.
Buying or selling
Land transfer tax is a one-time charge. The City’s higher bands started April 1, 2026: 4.4% from $3 million to $4 million, 5.45% to $5 million and 6.5% to $10 million. On $3.5 million, the City’s tax is $83,475. The Toronto land transfer tax calculator runs any price. Related tools: the Toronto Vacant Home Tax calculator, plus all our real estate calculators.
Sources
- City of Toronto, 2026 Budget now final
- City of Toronto, 2026 interim bills
- City of Toronto, late tax bill payments
- City of Toronto, tax and utility relief
Common questions
How much will my Toronto property tax go up in 2026?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.