Today, Toronto City Council considered the 2026 rate- and tax-supported operating and capital budgets proposed by Mayor Olivia Chow. The 2026 Budget prioritizes affordability for residents, strengthens community safety, keeps the city moving, and maintains reliable frontline services while continuing the City’s multi-year approach to long-term financial sustainability. The budget includes a combined residential property tax increase and City Building Fund levy increase of 2.2 per cent.
Mayor Chow has issued a Mayoral Decision indicating she will not exercise her veto and has shortened the 10-day period for the Mayor to veto any amendments. As a result, the 2026 Budget is now deemed adopted. A Mayoral Decision outlining this has been issued and is available on the City’s Mayoral Decision webpage.
The 2026 Budget is comprised of an $18.9 billion operating budget ($16.61 billion tax supported; $2.25 billion rate supported) and an historic $63.1 billion 10-year capital budget and plan (2026–2035), the largest 10-year capital plan in the City’s history.
The operating budget includes $788 million in efficiencies, reductions and offsets to address financial pressures.
To help inform the 2026 Budget, input was received from more than 25,000 residents through consultations held in October, as well as telephone town halls, speakers to Budget Committee and written submissions in January.
Key investments in the 2026 Budget
Making life more affordable:
Supporting community safety:
Keeping Toronto moving:
Providing excellent community services:
Building on progress made over the past two budgets, the 2026 Budget reflects ongoing financial stability measures, including $1.23 billion in operating support through the Ontario-Toronto New Deal and the City’s recent credit rating upgrade to AA+.
Despite these actions, the City continues to face significant financial challenges including revenue softening in key areas, emergency services and transit pressures, inflationary increases and limited municipal revenue tools.
Property taxes and relief programs
The tax-supported operating budget is supported by a 0.7 per cent operating levy increase for residential and industrial properties and a 0.35 per cent increase for multi-residential and commercial properties.
A dedicated 1.5 per cent levy increase for the City Building Fund continues to support transit and housing investments.
In total, the combined residential property tax increase and City Building Fund levy represent an increase of 2.2 per cent, or $91.53 per year ($7.63 per month), based on the Municipal Property Assessment Corporation’s average current value assessment of a Toronto home ($692,140).
Property tax relief programs remain available for eligible low-income seniors and people with disabilities, supporting an anticipated 11,500 households this year. More information is available on the City’s Tax and Utility Relief webpage.
Capital Renewal
The 2026–2035 capital budget and plan totals $63.1 billion ($42.6 billion tax supported and $20.5 billion rate supported). The 10-year plan focuses on fixing and maintaining aging infrastructure, with 53 per cent dedicated to state-of-good-repair projects. Major investments continue in transit and mobility, housing and community improvements, and stormwater management and basement-flood mitigation.
Toronto Water and Solid Waste rates
To support critical services such as waste management and water treatment, the 2026 Budget maintains the interim rates approved by City Council in December, including:
More information is available in the City’s news release webpage.
Additional information
More information about the 2026 Budget, including Budget Notes, Briefing Notes and presentations, is available on the City’s 2026 Budget webpage.
Quotes
“City Council adopted a 2026 Budget that helps Torontonians with the rising cost of living while protecting the services people count on. This budget delivers real savings for families by expanding student nutrition to every public school, freezing TTC fares for the third year in a row, keeping every library branch open seven days a week and supporting seniors, the people who took care of us. It also strengthens community safety and invests in the housing, transit and infrastructure Toronto needs. Together, we’re building a more affordable, safe and caring city.”
— Mayor Olivia Chow
“This budget is about doing the basics well. We’re protecting the services people rely on, being disciplined with spending, and making smart investments in safety and state-of-good-repair. It helps residents manage affordability pressures while keeping Toronto on a stable, sustainable path.”
— Councillor Shelley Carroll (Don Valley North), Chair of the Budget Committee
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