I’ve been living in the city of Toronto long enough to realize that January does not just bring snow but also new fee schedules. It’s like a ritual. You open your mail and your inbox, and there it is – a message letting you know your water bill is up a little, your garbage bill is up a little, and the price to renovate your basement has gone up a little more.
Of course, if you are attempting to budget for 2026, you might feel like your wallet is being pulled in a dozen different directions. You might even think that you weren’t so wrong in thinking that way, and you would not be wrong at all. This is because, due to a brand-new budget that was announced by Mayor Olivia Chow, as well as inflationary increases that took place on January 1, the fees have all shifted. They might not be large changes, but they add up.
I really wanted to take the time and actually sit down and put together a proper post, not just listing off the figures, but providing you with some true insight into what these fees are, what they’re used for, and how much you’re really going to have to pay this year. If you’re already a homeowner, perhaps a renter and looking to buy in the future, or just want to put up a nice deck without the city breathing down your neck, here’s what you need to know about fees in the city of Toronto in 2026.
The 2026 Context: Inflation, Budgets, and What Changed
We need to talk about the big picture before we look at specific dollar amounts. 2026 is an interesting year for Toronto. The city has been facing a massive budget hole for years—we all know the headlines. Mayor Chow came in with a mandate to fix the books without completely crushing homeowners, and that is a tough balance beam to walk.
The headline number you probably saw in the news was the property tax increase, which could influence the application fees for new developments. For 2026, the budget pushed for a residential property tax hike of 2.2 per cent. That sounds low, and honestly, compared to the 9.5 per cent hike we saw a couple of years back, it feels manageable. It is effectively below the rate of inflation.
But here is the catch. Property tax is just one bucket. The City of Toronto relies heavily on User Fees. These are the direct costs you pay for specific services—water, garbage, building permits, planning applications. Unlike property taxes, which are political hot potatoes, user fees often have automatic inflationary adjustments baked into the city bylaws.
This means that on January 1, 2026, a whole raft of fees went up by roughly 3 per cent to 4.8 per cent automatically. They call it the Cost of Living Adjustment. The idea is that if it costs the city more to hire inspectors or process paperwork due to inflation, the application fee should rise to match it. It makes sense on paper, but for those of us paying the bills, it means checking the fee schedule every single year because last year’s quote is now expired.
Residential & Property Taxes
Let’s start with the bills that hit every homeowner. These are the unavoidable costs of owning a piece of Toronto.
Property Tax: The 2.2% Increase and The Extra Levies
So, about that 2.2 per cent increase. When you get your final 2026 tax bill in May (remember, the interim bill you get earlier is just based on last year), you will see the City of Toronto tax rate has gone up. But you have to look closely at the breakdown.
Your property tax bill isn’t just one number. It is actually three things mashed together: the City Tax (this is what went up 2.2%), the Education Tax (this is set by the Province of Ontario and usually stays flat), and the City Building Fund Levy.
That third one is important. The City Building Fund is a dedicated levy that was approved years ago to fund transit and housing infrastructure. It has been rising steadily. So even if the Tax Rate only goes up 2.2 per cent, the addition of the Building Fund levy usually bumps the actual cash you pay a little higher.
I should also mention the elephant in the room: MPAC assessments. We are still operating on property value assessments that are wildly out of date. The province has kicked the can down the road on reassessment for years. This means you are paying taxes based on what your house was worth nearly a decade ago, not what it would sell for in 2026. If a reassessment happened today, the rate would drop significantly to keep the total revenue neutral, but the distribution would shift massive amounts of tax burden onto properties that have appreciated faster than average. For 2026, we are still largely in the freeze, which at least provides some predictability.
Land Transfer Tax (MLTT): The New Luxury Rates
If you are buying a house in 2026, I hope you are sitting down. Toronto is unique (and not in a good way) because we are the only municipality in Ontario with our own Land Transfer Tax (MLTT) on top of the provincial one. Double the fun.
Starting effectively in April 2026, the luxury tiers of the MLTT have been adjusted to be even more aggressive. The city council approved these graduated rates to target high-value real estate. The logic is that if you can afford a $5 million home, you can afford to contribute more to city coffers and support customer service initiatives.
Here is how the tiers look now, reflecting the recent policy changes in the Greater Toronto Area. It is a progressive tax, like income tax. You pay a lower rate on the first portion of the value and higher rates on the rest.
On the first $55,000, you pay 0.5 per cent. From $55,000 to $250,000, you pay 1.0 per cent. From $250,000 to $400,000, it goes to 1.5 per cent. From $400,000 to $2,000,000, it is 2.0 per cent. From $2,000,000 to $3,000,000, it bumps to 2.5 per cent.
This is where the new 2026 changes bite, affecting applicants in the region. Previously, it capped out lower. Now, look at the high-end brackets. From $3,000,000 to $4,000,000, the rate is 4.40 per cent. From $4,000,000 to $5,000,000, it is 5.45 per cent. From $5,000,000 to $10,000,000, it climbs to 6.50 per cent. Over $20,000,000, you pay 8.60 per cent.
Let’s do a quick napkin math. Say you buy a house for $4,500,000 in Rosedale. You pay 0.5 per cent on the first tiny bit, 1 per cent on the next bit, and so on. But on that chunk of money between $3M and $4M, you are paying 4.4 per cent. And on the $500k between $4M and $4.5M, you are paying 5.45 per cent. The Municipal tax alone on a $4.5M purchase is going to be well over $150,000. Then you add the Provincial tax on top. Closing costs in Toronto for 2026 are practically a down payment in any other city.
Vacant Home Tax (VHT): The Increase to 3%
This is the one that has everyone talking at dinner parties. The Vacant Home Tax (VHT) was introduced to force investors to put units back on the rental market. It started at 1 per cent.
For the 2026 billing cycle (based on 2025 occupancy), the rate is now 3 per cent of the Current Value Assessment.
This is huge. If you have a condo assessed at $800,000 and you leave it vacant for more than six months in the calendar year, you owe the city $24,000. That is not a small fine; that is a financial penalty designed to hurt.
The process is strictly enforced, ensuring that all applicants adhere to the new policies in the region. Every single homeowner in Toronto must declare their occupancy status. The deadline is April 30, 2026. Do not miss this date. I nearly missed it last year and had a moment of panic. If you do not declare, the city deems the home vacant and slaps the tax on your bill, plus a fee for failing to declare. Fighting to get it reversed is a headache you do not want.
Utilities: Water & Solid Waste Management
You would think water and garbage are boring topics, but they make up a big chunk of the city’s user fee revenue. The city runs these on a cost-recovery basis. This means your property taxes generally don’t pay for water or garbage; the fees you pay for those services must cover the entire cost of running the plants, pipes, and trucks.
2026 Water Rates & Tiers
For 2026, the water and wastewater consumption rates went up by an interim 3.75 per cent on January 1. If you are an average household, you likely use around 230 cubic metres of water a year. At the new rates, you are looking at an annual bill of roughly $1,118. That is an increase of about $40 from last year.
The city also uses a Block system, mainly affecting industrial users, but for us residents, we pay the standard residential rate per cubic metre. It encourages conservation. The more you use, the more you pay, obviously, but the rate per unit is set to ensure the infrastructure (which is getting very old) gets replaced. There is a lot of digging happening across the city—watermain replacements are expensive.
Garbage Bin Fees: Size Matters
I remember when we just put black bags on the curb. Now, the size of your bin dictates your annual fee. The Solid Waste Management folks also bumped their fees by that same 3.75 per cent for 2026.
Here is a rough breakdown of what the bins cost annually now. A Small Bin will run you about $317.85. A Medium Bin costs roughly $385.86. A Large Bin is around $524.06. And if you have an Extra-Large Bin, you are paying close to $607.86.
Most people I know try to get by with a Medium. If you have a large family, you might be stuck with the XL, and that is over $600 a year just for someone to take your trash away. It’s a good incentive to recycle, which is included in the fee.
One thing to watch out for is Bag Tags. If your lid doesn’t close flat, they won’t take it unless you buy a specific tag from Canadian Tire or Shoppers Drug Mart and stick it on the extra bag. Those tags are not cheap, costing over $5 each now. It is annoying, but it stops people from dumping renovation waste in their residential pickup.
Parking & Transportation Fees
This is a section that people often forget about until they get a ticket or buy a car. If you drive in Toronto, the city has a fee for you.
On-Street Parking Permits
If your home doesn’t have a driveway, or if you have more cars than spots, you are familiar with the On-Street Parking Permit. These rates are adjusted annually based on inflation. For 2026, the costs depend on your priority area.
If you are in a high-demand downtown zone, you could be paying over $200 for a 6-month permit if it is your first car. If it is your second car, the price jumps significantly—often triple the price of the first permit. The city really does not want you parking two cars on the street. In the outer suburbs, the fees are lower, sometimes around $120 for 6 months, but they are slowly creeping up too.
Parking Tickets & Green P
The cost of getting caught has gone up. In previous years, a standard “parked without paying” ticket might have been $30 or $50. Now, with recent enforcement changes, the standard fine for parking violations (like parking in a no-stopping zone or failing to pay the meter) has increased to $75 for basic infractions and up to $150 or $200 for blocking traffic or bike lanes during rush hour. The “Rush Hour” fines are severe because the city is trying to clear gridlock.
Green P parking rates at meters and lots are also fluid. In 2026, we are seeing hourly rate caps lifted in prime zones (like near the Rogers Centre or hospitals), pushing hourly parking costs to $5.00 or $6.00 in peak times.
Building & Renovation Permits
Now we get into the complex stuff. If you are planning to build, extend, or renovate in 2026, you are dealing with Toronto Building. They are the gatekeepers.
On January 1, 2026, building permit fees were adjusted for inflation by about 4.0 per cent. This adjustment happens every year based on the wording in the Building Code Act and city bylaws.
Permit Fees 101
Building permit fees are usually calculated based on the Gross Floor Area of the work you are doing. The city publishes a fee schedule that assigns a Service Index price per square metre for different types of work.
There is always a Minimum Permit Fee. Even if you are just doing something tiny that requires a permit, you won’t pay less than the minimum. For 2026, that minimum is inching up. It used to be around $200 a few years ago; now, with indexation, for most residential work, the base entry price is higher.
Common Renovation Costs
Let’s say you want to finish your basement. This is Group C residential work. You are paying a rate per square metre of the area being renovated. If you are moving walls, adding a bathroom, or finishing a basement, you calculate the area. For a 100 square metre basement, the permit fee itself might be in the range of $500 to $800 depending on the specific classification index for 2026.
One specific fee that catches people off guard is the Occupancy Permit for unfinished builds. If you want to move into your new custom home before it is 100% done, you pay for that privilege.
The Hidden Costs
The permit fee is just the tip of the iceberg. I tell everyone to budget at least 50% more for city stuff than just the permit fee.
First, there are Development Charges. If you add a second unit or significantly expand the GFA, you might trigger these. Second is Tree Protection. This is big. If there is a city tree nearby, you have to pay for an Urban Forestry review. You might have to put down a substantial deposit (we are talking thousands of dollars) to guarantee you won’t hurt the tree. And finally, Street Occupation. Need a dumpster on the road? That’s a permit. Need to close the sidewalk? Permit.
Planning Applications & Zoning
If what you want to build doesn’t perfectly fit the zoning rules—and let’s be honest, almost nothing does in older Toronto neighbourhoods—you enter the world of City Planning.
Committee of Adjustment (Minor Variance)
This is the most common hurdle for homeowners. You want to build a deck slightly larger than allowed, or your addition is too close to the property line. You need a Minor Variance.
For 2026, the fees for the Committee of Adjustment are tiered. For additions or alterations to a house (3 units or less), the fee is roughly $2,228. For a new residential dwelling (3 units or less), it is around $5,011. If you are doing something commercial or industrial, it is over $6,400.
Note that this is a processing fee. It guarantees you a hearing. It does NOT guarantee you a Yes. You can pay your money, go to the hearing, have your neighbours complain about shadows, and get rejected. Money gone. No refunds.
Major Developments: Rezoning
If you are a developer or trying to do something big, you might need a Zoning Bylaw Amendment. Hold onto your hat. The base fee for a ZBA in 2026 is over $63,000. If you need an Official Plan Amendment too, that is over $232,000.
These fees increased by roughly 4.82 per cent on Jan 1, 2026. The city argues that these complex applications take hundreds of hours of staff time from planners, engineers, and transport staff, so the developer should pay full cost recovery.
Development Charges
I mentioned this earlier, but it deserves its own section. Development Charges are fees collected from developers at the time a building permit is issued to pay for the growth-related capital costs like new parks, libraries, and sewers.
For a single detached or semi-detached home in Toronto, the DC rate in 2026 is hovering around $130,000 to $180,000 depending on the specific phase-in and recent legislative changes by the Province. Before you buy a brick or a 2×4, you are paying the city nearly $200k for the right to add a house to the grid. This cost is directly passed on to the buyer. If you wonder why new construction homes are expensive, this is a big part of it.
Community, Recreation & Administrative Fees
These are the fees that hit your day-to-day life, distinct from owning a property or a car.
Parks & Recreation Programs
If you have tried to register a child for swimming lessons on “Blue Monday” (registration day), you know the stress. You should also know the price. The city tries to keep these affordable, but the fees for camps, swim programs, and skating lessons generally rise by the inflation factor (around 3-4 per cent) each year. In 2026, a standard instructional swim program for a child is edging closer to $70-$80 for a session, and summer camps are significantly more.
Also, don’t forget the Ferry. Taking a trip to the Toronto Islands? The ticket price has adjusted up slightly. It is still one of the best deals in the city for a day out, costing around $9 or $10 for an adult return ticket, but for a family of four, it’s a $30+ outing before you even buy an ice cream.
Short-Term Rental Registration
If you are renting out a room on Airbnb, you need to register with the city. The annual Short-Term Rental operator registration fee is around $55. Plus, you have to collect and remit the Municipal Accommodation Tax (MAT), which is 6 per cent of the rental cost. The city is using data scraping to find unregistered hosts, so for $55, it is better to just register.
Marriage Licences & Civil Ceremonies
Getting hitched? The city charges for the paperwork. A marriage licence in Toronto for 2026 costs over $160. If you want a civil ceremony at the Civic Centres, you will pay another fee for the officiant and the room rental, which can run between $300 and $400 depending on the time and day.
Pet Licensing & Business Fees
If you have a dog or cat, you need a licence. The fee is around $25-$60 depending on whether the pet is spayed/neutered. Honestly, this is one fee I don’t mind paying. The BluePaw tag actually gives you discounts at some pet stores, and if your dog gets lost, City Services will actually drive them home to you for free once a year instead of taking them to the pound. It’s worth it.
For business owners, licences for restaurants, tow trucks, and hair salons also saw the inflationary bump. A standard business licence renewal is generally a few hundred dollars, but failure to renew brings fines that are much steeper.
Summary: How to Survive 2026
So, that is the landscape. Toronto is an expensive city to run, and the user-pay model is how they keep the headline property tax rate from looking like a mortgage payment.
Here is a quick text summary of the dates you absolutely cannot mess up this year.
First, the Vacant Home Tax Declaration is due April 30, 2026. Go to the city portal and do it now. Second, watch for your Property Tax Bills. The interim bills usually come due in three installments around March, April, and May. The Final bills arrive in May and are due in the summer months. Finally, keep an eye on your utility bill, which usually comes every four months for homes.
My advice? If you are planning a renovation, apply for your permits sooner rather than later. Fees change every January 1st, so if you wait until next year, it will cost you another 4 per cent. If you are buying a home, factor that Land Transfer Tax into your closing cash—banks won’t lend you money to pay the tax; you need that cash in hand.
Living in Toronto is amazing, but it sure isn’t free. Hopefully, this guide helps you see exactly where those dollars are going.
Disclaimer: I am a knowledgeable observer, not a financial advisor or a city official. Fee schedules are subject to Council decisions and bylaw amendments. Always verify the exact down-to-the-cent fee on the official City of Toronto website or through your lawyer before writing a cheque.