Ontario’s rent increase guideline for 2026 is 2.1%. On a rent of $2,200 the new maximum is $2,246.20, which is $46.20 more each month and $554.40 more across a year. Repeat the same increase for five years and the rent reaches about $2,441.
What the guideline is
It caps how much a landlord can raise rent in a year without approval from the Landlord and Tenant Board. The province sets it annually, tied to inflation. Most rental homes in Ontario fall under it, apartments and houses alike.
Notice and timing
A landlord has to give at least 90 days of written notice on the official form. No increase can start until 12 months after your move-in date or after the last increase. Got a notice with less time? Then you don’t have to pay the higher rent yet.
Homes the guideline skips
Units first occupied for residential use after November 15, 2018 are exempt. Some social housing and care homes follow other rules. Tick the box in the calculator if your unit is newer, and a warning explains that a larger increase can be legal.
Above-guideline increases
To ask for more, a landlord applies to the board and must show costs such as major repairs or utilities. The board decides. Tenants can attend the hearing. While the case is pending you keep paying the current rent plus the guideline amount.
Reading the result
The top figure is the new monthly rent. Under it sit the monthly and yearly cost of the increase, then a table for later years. That table repeats a single percentage while real guidelines change every year, so use the later rows for planning only.
Fitting it into your budget
An extra $46 a month looks small. Add higher grocery, transit and utility costs and the yearly effect grows. Rent is often the biggest line in a Toronto budget, so one percentage change shifts the whole plan.
If your notice looks wrong
Check the percentage, the date and the form. Ask the landlord to fix any mistake in writing. Legal clinics and tenant groups offer free help. Keep copies of every notice and payment.
Checking the maths by hand
Compounding is easy to verify. Multiply the rent by 1.021 to get the next year: $2,200 becomes $2,246.20, then $2,293.37, then $2,341.53. Each step is a little larger in dollars than the last, because the percentage applies to a bigger rent. Rounding to the cent is usual, but a landlord’s form may round differently, so compare the notice figure with the calculator. A gap of more than a few cents deserves a question.
Toronto and the guideline history
Rents on new Toronto leases have risen well above the guideline, but sitting tenants in older units usually see only the guideline. That gap makes moving costly, so weigh the new rent, moving costs and lost stability before leaving a low-rent unit. The guideline was 2.5% for 2025 and is 2.1% for 2026. It follows the province’s inflation figure and is capped by law. Don’t assume next year’s number. Look up the current figure on the Ontario government page each summer.
Where to go next
Compare renting with owning in the rent vs buy calculator. Plan the rest of your spending with the monthly budget calculator. Work with percentages in the percentage calculator, and see local costs in the Toronto cost of living calculator.
Frequently asked questions
What is the Ontario rent increase guideline for 2026?
2.1%.
How much notice must a landlord give?
At least 90 days in writing, on the official form.
How often can rent go up?
Not more than once every 12 months.
Does the guideline apply to new buildings?
No. Units first occupied after November 15, 2018 are exempt.
Can a landlord ask for more than the guideline?
Yes, but only with approval from the Landlord and Tenant Board.
How do I calculate the new rent?
Multiply the current rent by one plus the percentage.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.