City of Toronto launches 2026 Budget focused on affordability and service stability

The 2026 Budget is built on feedback from more than 11,000 residents who participated in public consultations in October 2025. City staff presented an operating budget of $18.9 billion, alongside a $63.1 billion capital budget and plan covering 2026–2035, marking the largest 10-year capital plan in Toronto’s history. The plan focuses on addressing aging infrastructure while investing in housing, transit and water systems.

Affordability and essential services prioritized

Key highlights in the 2026 Budget include expanded affordability programs, continued investment in community safety and a strong focus on maintaining core services. Measures include expanding the student nutrition program to all public schools, freezing TTC fares for a third consecutive year, opening all Toronto Public Library branches seven days a week and enhancing supports for renters and homeowners.

The Budget also continues investments in emergency response services and neighbourhood safety initiatives, while allocating major capital funding to repair and maintain roads, bridges, transit infrastructure and water systems.

City of Toronto launches 2026 Budget focused on affordability, service stability and financial sustainability

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Responsible financial management amid ongoing pressures

City staff identified $788 million in efficiencies, reductions and offsets to help manage financial pressures. The Budget builds on progress made in the previous two fiscal years, supported by funding through the Ontario–Toronto New Deal and a credit rating upgrade to AA+, which lowers borrowing costs for the City.

Despite these measures, Toronto continues to face challenges including inflationary pressures, transit funding demands, emergency service costs and limited municipal revenue tools.

Property tax impact and relief programs

The tax-supported portion of the operating budget is backed by a 0.7 per cent residential property tax increase, aimed at protecting essential services while continuing to invest in priority areas. Property tax relief programs remain in place for eligible low-income seniors and people with disabilities, supporting more than 10,500 households annually.

In addition, a 15 per cent property tax reduction will continue for more than 28,000 small businesses, alongside a similar discount for new multi-residential properties to encourage housing development.

Historic capital investment

The $63.1 billion capital plan prioritizes housing, transit and water infrastructure, supported in part by a dedicated 1.5 per cent City Building Fund levy endorsed by City Council. Combined with the residential property tax increase, the total impact amounts to approximately 2.2 per cent, or about $91.53 annually for the average Toronto homeowner.

Public participation and next steps

Residents are encouraged to continue participating in the 2026 Budget process through telephone town halls hosted by Olivia Chow and Budget Committee Chair Shelley Carroll, as well as by speaking at Budget Committee meetings or submitting written feedback.

Provincial legislation requires the Mayor to present the final budget to City Council by February 1, with a special City Council meeting scheduled for February 10 to consider adoption.

Speaking about the Budget, Mayor Chow said the plan focuses on easing cost-of-living pressures while maintaining safety and care across the city. Councillor Carroll added that the approach balances fiscal responsibility with investments that support jobs, neighbourhoods and essential services.

More details on the 2026 Budget and participation opportunities are available on the City’s website.

Source: City of Toronto

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