After more than a month of build up, Toronto is forging ahead with a 9.5% hike to the residential property tax rate — the highest increase since the city was amalgamated in 1998.

Mayor Olivia Chow first floated the 8% increase (to be combined with a 1.5% increase for the City’s building levy) when she tabled her version of the budget on February 1. With this increase, the average Toronto homeowner can expect to pay an additional $338 in property taxes this year.

It’s certainly worth noting that the 9.5% raise proposed by Chow is a full basis point under the 10.5% that was proposed by budget staff last month. Chow opted to soften the blow that will be felt by residential property owners across the city this year in response to concerns aired by Toronto residents during a series of ‘telephone town halls’ that were hosted by the City in mid-January.

City Council voted 18 to 8 in favour of the 9.5% increase to the residential property tax rate when they met on Wednesday to deliberate the particulars of the 2024 budget.

In addition, Council has passed base property tax increases of 2.95% for multi-residential properties (to be combined with a 0.55% city building levy), 4% for commercial properties (to be combined with a 0.75% city building levy), and 8% for industrial properties (to be combined with a 1.5% city building levy).

More broadly, Toronto’s final budget package for 2024 includes an operating budget of $17.1B, as well as a 2024-2033 capital budget and plan of $49.8B.

Other highlights from the 2024 budget include investments of $126M into affordable housing and shelters, $30M into transit services and environmental sustainability, and $44M into community services and supports, as well as a $50M ‘back on track fund,’ that will be used to support urgent state-of-good-repair work, address infrastructure deficiencies, and make certain public space enhancements.

A more detailed breakdown of the 2024 budget can be found on the City of Toronto’s website.