Mayor says proposed 2.2 per cent property tax increase not a re-election ploy

Mayor Olivia Chow says the 2026 budget is not a re-election ploy, saying the 2.2 proposed property tax levy is what Torontonians need and can afford.

City staff have put forth an operating budget of almost $19 billion for 2026, which includes a 0.7 per cent hike in property taxes coupled with a 1.5 per cent annual increase in the City’s Building fund, which goes toward paying for transit and housing infrastructure.

That works out to an almost $92 increase for an average Toronto home with an assessed value of $692,140.

Last year saw a property tax increase of 6.9 per cent, while two years ago, a 9.5 per cent increase was levied on Toronto residents.

It marks the lowest property tax increase since 2020, and despite previous financial pressures, both the mayor and the city’s budget chief say Toronto can afford it because they have found efficiencies across multiple agencies and multiple departments.

“Absolutely, the City of Toronto can afford this very affordable budget. Why? Because we fixed the fiscal problems,” explained Chow at an unrelated event Thursday morning. “I came in, it was tough – there was a $1.8 billion budget hole. I didn’t create it, but I took responsibility for it, and we went to work.”

Chow outlined some of the highlights of the budget, which include expanding the student nutrition program to all public schools, freezing TTC fares for the third year in a row, opening all library branches seven days a week and providing additional support for renters and homeowners.

The budget also imposes a higher tax on the sale of luxury homes worth more than $3 million, which the City says will bring in close to $14 million this year.

“We made the budget more fair by shifting the burden from families to speculators and luxury property buyers.”

Budget chief Shelley Carroll revealed that the City also plans to cut an additional 5 per cent off taxes to be paid by small businesses.

“It’s very clear that this is an election budget, and I think that’s unfortunate because that’s why people get cynical about politics,” said Coun. Brad Bradford, who has already indicated his intention to run for mayor this fall.

“Everybody knows there’s not a tax that Mayor Chow doesn’t love, and my concern is she’s raiding the reserves, she’s deferring capital investments that are so desperately needed to keep the city moving. How is she going to pay for this?”

Budget documents unveiled at City Hall on Thursday reveal the city’s next mayor is likely looking at a $1.5 billion shortfall in 2027.

Chow has not indicated if she plans to seek re-election this fall.

Public consultations on the budget are set to begin January 14, before the mayor presents her proposed budget on February 1. City council will then debate and ratify the budget on February 10.