Toronto proposes 2.2% property tax hike in new budget

Toronto Proposes 2.2% Property Tax Increase

The City of Toronto is proposing a 2.2 percent property tax increase ahead of its official budget process. Most of the funds will go to the city’s building fund.

The city will present its draft budget on Thursday. This budget will outline the initial increase and spending limits for councillors to discuss.

Under the strong mayor powers from the Ford government in 2022, Mayor Olivia Chow has significant authority in the budget process. It requires two-thirds of the council to overrule her decisions.

Chow must present her budget by February 1 at the latest. Councillors will then have a maximum of 30 days to review and approve the final budget.

Budget Highlights and Statements

Chow and Coun. Shelley Carroll, chair of the budget committee, have mentioned programs like library access seven days a week and protections for renters. This will result in a 0.7 percent general property tax increase and a 1.5 percent increase for the city’s building fund.

“This budget is about being responsible with public dollars while protecting the services people rely on every day,” Carroll said in a statement.

“At a time when families and businesses are feeling real cost pressures, the City is focused on managing expenses carefully, enhancing community safety, and investing in the basics that support good jobs and a strong local economy.”

Future Announcements and Elections

Chow hinted at future budget plans with several announcements through the end of 2025. She revealed a plan to cap fares for transit riders midway through the year and a higher land transfer tax for the city’s most expensive houses.

The upcoming mayoral election in October may also influence the budget process. Councillor Brad Bradford has announced his intention to run. Chow has not confirmed if she will seek another term.

In an interview with Global News, Chow stated she would prioritize tough budget choices over any re-election bid. “Absolutely, I will prioritize the budget anytime, because the rest is political consideration. I’m just one person,” she said in December. “Show that the city hall cares about you; that is what is the most important piece.”

Criticism and Previous Budgets

Critics, including Bradford, point to significant tax increases in Chow’s first two budgets as evidence that her policies are too costly for the city.

Chow was first elected mayor in June 2023 and passed her first budget at the beginning of 2024. This budget included a 9.5 percent increase, the highest since Toronto became one city in 1998. It included increases for the Toronto police, more warming centres, and Scarborough transit.

The following year, Chow approved another substantial increase. The 2025 budget was approved with a 6.9 percent increase, adding funds for police, transit, libraries, and affordable housing.