Toronto city council has adopted Mayor Olivia Chow's 2026 operating budget, a package totalling $18.9 billion that carries a 2.2 per cent property tax increase — a notable step down from the 6.9 per cent increase last year and 9.5 per cent the year before. City officials say the increase works out to about $91.53 more per year for an average Toronto home assessed at $692,140.
The budget freezes TTC fares, including a cap that limits riders to paying for 47 rides in a calendar month once the measure kicks in later this year. Nearly $1.48 billion goes to the transit agency to meet its full funding request. The plan also sets aside money to mitigate homelessness, keep libraries open seven days a week, and fund a multi-year hiring plan for hundreds of new police officers and paramedics.
One of the most debated lines was a funding increase of more than $93 million for the Toronto Police Service. Chow defended it, saying the city must honour the force's collective agreement and hiring plan, even as a recently revealed corruption probe has led to charges against seven current officers.
Critics on council, including mayoral candidate Brad Bradford, questioned the timing of the modest tax rise in a municipal election year, calling it an unsustainable pre-election move. The city says the lower increase is enabled by higher taxes on home speculators and the top two per cent of luxury homebuyers.
