Toronto City Council passes 2025 budget with 6.9 per cent tax increase

Toronto City Council has officially voted to approve the 2025 budget after a marathon meeting on Tuesday.

The 2025 budget includes a 6.9 per cent tax increase and more funding for police. “The 2025 budget is rebuilding our city together,” said Mayor Olivia Chow in her message to residents.

The $18.8 billion operating budget also includes an $85 million increase in the year’s TTC budget which includes a fare freeze for the second straight year, 100 more traffic agents, extended library hours and increased investments in meal programs for children.

“We improved city services, and we put more shovels in the ground for affordable housing, but there is so much more to do,” said Chow.

The 6.9 per cent property tax increase works out to an average of $210 to $250 for the average home, but is a decrease from last year’s 9.5 per cent increase.

Despite this, Chow was still feeling the heat. “No one is ever happy when you’re asking people to pay more,” said Chow when asked by a councillor if she was happy with the tax increase.

Aside from the budget agenda, U.S. tariffs also seeped into council talks on Tuesday.

Councillor Brad Bradford had proposed a late amendment to the spending plan, asking for a 25 per cent tax cut for Industry and Small Businesses, but the Mayor says she simply can’t back that idea and it did not pass.

However, councillors did vote in favour of Chow’s measure to temporarily restrict new Tesla vehicles from participating in the Zero Emission Grant Program for vehicles for hire, effective March 1, 2025, “until such time as the negative U.S. trade action has ended.”

“This will send a message to Trump’s right-hand person, Elon Musk.”

Protestors also briefly interrupted the meeting in the afternoon, coming within inches of councillors. The meeting resumed after a brief recess.