Toronto’s 2026 operating budget is $18.9 billion, of which $16.61 billion is tax-supported and $2.25 billion is paid by water and solid waste rates. City Council considered it on February 10, 2026, and it was then deemed adopted. Alongside it sits a ten-year capital plan of $63.1 billion, the largest in the City’s history.
What the two halves of the operating budget mean
The tax-supported part funds services such as libraries, paramedics, parks and transit support. It is backed by the residential property tax increase of 0.7% plus a 1.5% City Building Fund levy, about 2.2% combined, or $91.53 a year on an average assessed home of $692,140. The rate-supported part covers water, wastewater and garbage, and is billed on the utility bill instead.
Those utility rates rose 3.75% in 2026. For water, that means $4.8629 per cubic metre when paid on time. A household using 230 cubic metres pays about $1,118 a year, and the Toronto water bill calculator lets you replace the average with your own use.
Services named in the City’s release
The City lists a few concrete items. All 100 library branches open seven days a week, year-round. The student nutrition program reaches about 330,000 students a day in 841 schools. The budget adds 258 emergency positions across police and paramedics, and hires 27 additional traffic agents.
Transit fares are frozen for a third consecutive year. From September 1, 2026, riders pay $3.30 by adult PRESTO fare, and rides become free after 47 paid trips in a calendar month. Most monthly passes ended August 31. The TTC fare cap calculator shows whether the cap suits your travel.
Housing and relief
The release says 27,000 new rental homes are expected this year, including 9,700 rent-controlled and affordable units. It also lists property tax relief for 11,500 households and 1,000 air conditioning units for vulnerable residents. Those are the City’s own figures, and a plan is not the same as homes completed, so check later progress reports.
The City’s property tax relief programs are open to low-income seniors and low-income people with disabilities. The 2026 income limit is $62,000 and the deadline is November 2, 2026.
How the capital plan is built
The $63.1 billion capital plan covers 2026 to 2035. Of that, $42.6 billion is tax-supported and $20.5 billion is rate-supported. The City says 53% goes to state-of-good-repair projects, meaning fixing what already exists. Major investments continue in transit and mobility, housing and community improvements, and stormwater management and basement-flood mitigation.
That last item matters to owners in older neighbourhoods, though the pages used here don’t list which streets or pipes come first. Anyone with a flooding history should ask 311 about programs and timing for their area.
What it costs an average household
On the City’s example bill of about $5,311 at 0.767311%, the City part is $4,189.49, the Building Fund is $62.40 and education is $1,058.97. Add $1,118 of water and a medium garbage bin at $385.86, and the yearly total for those items is about $6,815. Bin fees for 2026 run from $317.85 for a small bin to $607.86 for an extra-large one.
Your own figure depends on your assessment. The property tax calculator shows the split for any value. A home assessed at $400,000 pays $3,069.24, and one at $1,000,000 pays $7,673.11.
Reading a budget headline with care
A large number like $18.9 billion doesn’t tell you what any one program receives. It combines property tax, user fees and other revenue, and it covers hundreds of services. The City’s budget page links to the full Budget Book and Budget Summary for the department-by-department figures.
Announced positions and units are also targets. Whether they’re filled or built is reported later. When a headline gives a percentage rise for a department, look for the base amount in the Budget Book. See also the Toronto Cost of Living calculator, and the full set of Toronto calculators.
Sources
- City of Toronto, 2026 Budget now final
- City of Toronto, 2026 City Budget
- City of Toronto, Property Tax Rates and Fees
- City of Toronto, Property Tax, Water and Solid Waste Relief
Common questions
How big is Toronto's 2026 operating budget?
What is the 2026 property tax increase?
Are libraries open on Sundays in 2026?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.