Toronto (Rajeev Sharma): The City of Toronto is set to present its 2026 budget at city hall on Wednesday, with affordability emerging as the central theme amid ongoing economic uncertainty.
City officials confirmed that the proposed budget includes a freeze on Toronto Transit Commission (TTC) fares along with the introduction of a monthly price cap for riders, measures aimed at easing daily commuting costs for residents. The budget also proposes a 2.2 per cent increase in property taxes, marking a significant slowdown compared to the steep hikes imposed over the previous two years.
Speaking to CP24 ahead of the budget presentation, Budget Chief Shelley Carroll said the relatively modest property tax increase is part of a longer-term financial strategy designed to stabilize city finances after the pandemic. Toronto residents had faced property tax increases of 9.5 per cent and 6.9 per cent in the last two years as the city worked to recover from COVID-19-related financial pressures.
Carroll said those higher increases were necessary to address funding gaps left by the pandemic, but emphasized that the city had always planned to gradually reduce the burden on taxpayers. She noted that the goal was to create a financial “arc” that would eventually return to a level residents could reasonably manage.
Highlighting broader economic concerns, Carroll said the city is prioritizing savings in the current fiscal year due to ongoing uncertainty in the economy. She added that Toronto is also exploring ways to secure more sustainable revenue sources through the next phase of its funding agreement with the Ontario government.
According to Carroll, the province has acknowledged the city’s long-standing challenge of limited access to economic growth-driven revenue streams. She said future negotiations aim to ensure Toronto benefits more directly as the economy recovers, helping to provide long-term financial stability without placing excessive pressure on property taxpayers.
More details on spending priorities and funding allocations are expected to be released as the budget is formally tabled at city hall.
