Today, Toronto City Council approved a 3.75 per cent interim increase to Solid Waste Management Services (EX28.10) and Toronto Water rates and fees for water customers and a 1.25 per cent interim increase for participants in the Industrial Water Rate Program (EX28.9). The Industrial Water Rate Program offers manufacturers a discounted water rate to support economic growth and encourage water conservation.
The interim rates and fees will take effect on January 1, 2026, and will be finalized through the 2026 operating and capital Budget process. Interim rates are proposed to ensure the City can continue operations on January 1, 2026, while the full 2026 Budget is under consideration.
The proposed increase will help the City maintain and improve essential services such as waste collection and water treatment while supporting ongoing investments to build, renew and sustain the infrastructure required to provide these services. Service levels in 2026 are expected to remain consistent with 2025, with continued investments focused on enhancing reliability and customer service. The increase also reflects the rising costs of maintaining critical infrastructure and ensuring high-quality service delivery.
Solid Waste Management Services
Solid Waste Management Services fees fund much more than residential garbage collection. These fees cover the collection of organics, yard waste, oversized items and electronics, as well as city-wide litter collection, Community Environment Days, street and park bins, drop-off depots and the ongoing care of closed landfills.
Starting January 1, 2026, the City will no longer manage recycling for houses, multi-residential buildings, schools, long-term care facilities and retirement homes under new provincial legislation. The City will continue to manage recycling for charities, institutions, religious organizations, divisions, agencies and corporates, current commercial customers, parks and other public spaces. Any savings from having reduced recycling responsibilities have been reinvested into other essential waste programs residents depend on.
Following the proposed 3.75 per cent interim increase, the estimated 2026 annual solid waste fees for single-family households would be:
Toronto Water
Toronto Water provides safe, high-quality drinking water, treats wastewater and manages stormwater across the city. Toronto Water continues to make major investments to upgrade aging infrastructure, improve system reliability and prepare for the impacts of climate change and growth.
For the average Toronto household using 230 cubic metres of water per year, the 3.75 per cent increase represents an additional $40 annually, for a total estimated cost of $1,118 in 2026.
Relief programs
The City offers relief programs to provide rebates on water and solid waste charges for eligible low-income seniors and people living with a disability. More information about these programs is available on the City's Property Tax, Water & Solid Waste Relief.
2026 Budget
The City’s 2026 Budget process includes input from thousands of residents who participated in the fall consultations and completed the online budget survey, sharing their views on City services, spending priorities and revenue options.
Residents will have additional opportunities to get involved as the Budget process continues, including participating in telephone town halls hosted by Mayor Olivia Chow and Budget Committee Chair Councillor Shelley Carroll (Don Valley North) on January 14 and 15, 2026 and speaking directly to Budget Committee members during public meetings on January 20 and 21, 2026.
More information about the 2026 Budget process is available on the City’s Budget webpage.
Details about the 2026 Budget process are also available in the backgrounder.
Toronto is home to more than three million people whose diversity and experiences make this great city Canada’s leading economic engine and one of the world’s most diverse and livable cities. As the fourth largest city in North America, Toronto is a global leader in technology, finance, film, music, culture and innovation and climate action, and consistently places at the top of international rankings due to investments championed by its government, residents and businesses. For more information visit the City's website or follow us on X, Instagram or Facebook.