Toronto’s 2025 budget includes proposed 6.9% property tax hike

The City of Toronto’s 2025 budget includes a proposed property tax hike totalling 6.9 per cent.

In a release, the City says it is seeking to hike the property tax for residential properties by 5.4 per cent, which would be in addition to a 1.5 per cent City Building Fund levy increase. The fund is dedicated to supporting housing and transit in the city.

In a release the City said the proposed tax hikes align Toronto with “other Greater Toronto and Hamilton area municipalities.”

“This results in an increase of $210 annually for the average assessed value of a Toronto home ($692,031) or approximately $17.50 per month,” the release states.

The building fund levy would add $58.37 per year for the average assessed value of a Toronto home, the City said.

The budget also includes 3.75 per cent increases to water and garbage fees.

Toronto Mayor Olivia Chow chose to tout how the budget will improve the lives of citizens.

“This proposed budget will mean change in Torontonians’ lives today,” she said on Monday morning.

Last week, the TTC board approved a fare freeze for the second straight year, and announced a slew of planned service improvements.

“People deserve better and the TTC must be the better way,” Chow stressed.

“We are making the largest 10-year capital investment in transit infrastructure ever.”

Chow also highlighted plans to keep libraries open seven days a week, increase investment in meal programs for kids, add more traffic agents, provide more support for tenants in rental units and improve emergency response times (more details below).

Make life more affordable

•            Feed 8,000 more students through school food programs

•            Feed youth through CampTO food programs

•            Support 300 more households through the Rent Bank program

Get Toronto moving

•            Increase transit service hours by 5.8 per cent (approximately half a million hours)

•            Add more Traffic Agents to address blocked intersections, improve travel times in key corridors and decrease collision

Keep people safe

•            Add 276 more Emergency Services positions (fire, police and paramedics)

•            Invest in youth violence prevention programs

•            Expand road safety programs

Provide community services

•            Extend Sunday service hours at 67 Toronto Public Libraries

•            Enhance cleaning at recreational facilities

•            Expand hours for outdoor pools by two hours daily

•            Increase access to cultural initiatives including local arts, festivals and events.

Despite making headlines, this year’s proposed property tax hike pales in comparison to last year’s 9.5 per cent increase.

Budget Chief Shelley Carroll said the 2025 hike is necessary after “over a decade of underinvestment, which left us vulnerable to face the challenges we face today,”

“And we now have ourselves starting with a $1.2 billion opening shortfall, an improvement, but still a challenge,” she noted.