Toronto Mayor Olivia Chow unveiled her version of the 2025 budget on Thursday morning, which shows that she’s sticking with the 6.9% residential property tax increase that was floated earlier this month. That figure includes 5.4% intended to support the City’s operating budget for the year, as well as a 1.5% building levy to be used to support and advance critical infrastructure projects.
“I understand that it is challenging for many across the city,” Chow wrote in a mayoral decision. “That’s why with this increase, we are expanding property tax relief programs. We are increasing the property tax deferral and cancellation income threshold for seniors and persons with disabilities by 5% to $60,000. This will mean thousands more qualify for support. The home value threshold for the property tax cancellation program is $975,000. More people will also qualify for water rebate and solid waste rebate programs.”
The 6.9% hike, if put into effect, would result in an increase of $210 annually for the average assessed value of a Toronto home ($692,031) or approximately $17.50 per month, the City has said. It has also specified that the 2025 budget calls for base property tax increases of 2.7% for multi-residential properties, 2.7% for commercial properties, and 5.4% for industrial properties.
“Importantly, the total multi-residential tax rate is set lower, so that it is below the provincial threshold where landlords apply for above-guideline rent increases,” Chow said in her decision. “At a time when we know renters are already feeling squeezed, this reduction is an important measure.”
Whilea6.9% increase is by no means slight, it follows last year’s increase that was proposed to be a staggering 10.5% (9%, plus the building levy) and approved at 9.5% (8%, plus the building levy), marking the largest increase since the city's amalgamation. The increase proposed this year is more in line with what we saw under former Mayor John Tory, who opted for a 5.5% increase (7%, including the building levy) in 2023.
Toronto City Council will meet on February 11 to discuss the proposed property tax hike and the 2025 budget in full.
