Toronto City Council adopted the 2026 budget on February 10, 2026, with a residential property tax increase of 0.7% plus a 1.5% City Building Fund levy. That is about 2.2% combined, or $91.53 a year ($7.63 a month) on an average assessed home of $692,140, according to the City.
How the 2.2% splits in two
Each piece does a different job. The 0.7% is the operating increase, which pays for day-to-day services. Another 1.5% goes to the City Building Fund, a dedicated levy for capital work. According to the City, that fund was a one per cent rise in 2020 and 2021, followed by 1.5% each year from 2022 to 2026.
Not every property class got the same operating increase. Multi-residential and commercial properties received 0.35%, while residential and industrial properties received 0.7%. The Building Fund levy has its own rate for each class.
What the increase looks like in a bill
The 2026 residential rates are 0.605295% for the City, 0.009016% for the City Building Fund and 0.153% for education, a total of 0.767311%. On a $692,140 assessment the City’s example bill is about $5,311, made of $4,189.49, $62.40 and $1,058.97. Education is set by the Province, so the City’s 2.2% doesn’t include it.
Your own change depends on your assessment. The property tax calculator shows the bill for any assessed value. A home assessed at $400,000 has a total of $3,069.24 at these rates, and one at $1,000,000 has $7,673.11.
Looking back at 2024 and 2025
The City’s own releases put the combined residential increase at 9.5% for 2024, from 8% plus 1.5%. That cost $338 a year on the average home. For 2025 the combined figure was 6.9%, from 5.4% plus 1.5%, or about $268 on a home assessed at $692,031.
Set side by side, the three years total roughly $698 a year for an average household ($338, $268 and $92 after rounding). The averages differ slightly year to year, so treat that as an estimate. Still, 2026 is the smallest of the three steps.
What else the budget contains
The operating budget is $18.9 billion, with $16.61 billion tax-supported and $2.25 billion paid by water and solid waste rates. The ten-year capital plan is $63.1 billion. The City also lists TTC fares frozen for a third year, all 100 library branches open seven days a week and 258 new emergency positions. Water and solid waste rates rose 3.75%.
Those are commitments listed by the City. What each program eventually costs depends on later decisions, so a budget line is a plan, not a result.
Spreading the cost through the year
Owners not on a plan paid interim instalments on March 2, April 1 and May 1, then final ones on July 2, August 4 and September 1. The City also offers pre-authorized plans with two, six or eleven instalments. The eleven-instalment plan runs from February 17 to December 15, so on a $5,311 bill each payment would be near $483.
A saving habit works too. Put aside $443 a month, which is a twelfth of $5,311, and the bill is covered before it arrives. The budget calculator shows where that fits.
Help if the bill is hard to pay
Low-income seniors and low-income people with disabilities can apply for cancellation or deferral of a property tax increase. The 2026 income limit is $62,000 and the deadline is November 2, 2026. The City says relief supports 11,500 households. Late payments carry a 1.25% charge on the first day of default and each month after, and the City can’t waive it.
Homeowners weighing a move can check running costs in the rent vs buy calculator. Related tools: the Land Transfer Tax calculator, plus all our real estate calculators.
Sources
- City of Toronto, 2026 Budget now final
- City of Toronto, 2025 Budget now final
- City of Toronto, 2024 Budget now final
- City of Toronto, Property Tax Rates and Fees
- City of Toronto, Property Tax Due Dates
Common questions
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Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.