Toronto has not started charging a commercial parking levy, and no start date is set. A City report dated January 14, 2025 recommended that Council defer any implementation plan while staff keep working with the Municipal Property Assessment Corporation (MPAC), which the City says it needs to run the tax. The phrase “late 2026” does not appear in it.
What the levy would be
It would be an annual charge on owners of non-residential parking: surface lots, underground parking and garages, private or City-owned. A house driveway or an apartment resident’s spot is not the target. Council asked for the plan through the Updated Long-Term Financial Plan, which found combined operating and capital pressures of $46.5 billion over ten years.
What the January 2025 report decided
The report from the Chief Financial Officer and Treasurer went to Executive Committee with one recommendation: receive it for information. That is a status update, not a vote for or against a tax. It says MPAC’s involvement is critical because MPAC holds the property assessment data and can support audits, reconsideration requests and appeals. MPAC told the City its participation depends on its Board and may require talks with provincial officials.
If MPAC and the Province confirm their support, staff will report back with a full plan. We found no later City document saying that has happened. The old claim that the province showed no enthusiasm is not in the report, so it is dropped.
How big the inventory is
MPAC gave the City a preliminary surface parking inventory of about 22 million square metres, after statutory exemptions, and the City says it needs more checking. Underground and above-grade garages would add to it, and they are harder to capture than a surface lot.
What it could raise
The City estimated $100 million to $108 million a year. About $58 million would come from surface parking once a minimum exemption applies to every property, and up to $50 million more from garages. Earlier design work proposed exempting the first 300 square metres, about ten spaces, to protect small businesses. No rate is set. A tiered rate by geography and lower rates for small businesses are listed as options.
A worked example, with a warning
With no official rate, any lot-level figure is a guess. Still, dividing $58 million by 22 million square metres gives about $2.64 per square metre a year. Take a lot of 3,000 square metres, about 100 spaces. With the first 300 exempt, 2,700 square metres would be taxed, and at $2.64 that is about $7,130 a year. This is arithmetic on City totals, not a bill anyone will receive.
Who would pay
The owner of the parking area would pay. Whether that reaches tenants or drivers is a business decision the report doesn’t predict. The levy is separate from on-street parking, which runs from $1.50 to $6.75 an hour with HST included. You can price a regular trip with the parking cost calculator.
Is it about transit money
The old article said the levy would fund the TTC. The report is broader: the revenue could help sustain critical municipal services, including transit. Separately, the 2026 budget adopted on February 10, 2026 raises residential property tax about 2.2%, or about $91.53 on an average assessed home of $692,140. The property tax calculator shows your share.
What to watch for
Look for a new Council item asking staff to bring back a plan, a statement from MPAC or the Province, and a proposed rate, exemption and start date. Until they appear, the levy is an idea under study. Business owners can note their parking area in square metres now, which would help later. Related tools: the TTC Fare Cap calculator, plus all our Toronto calculators.
Sources
- City of Toronto, update on a commercial parking levy, January 2025
- City of Toronto, commercial parking levy report, 2024
- City of Toronto, 2026 City budget
Common questions
Is Toronto charging a commercial parking levy in 2026?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.