Toronto Floats 6.9% Residential Property Tax Increase In 2025 Budget

The City of Toronto has proposed a 6.9% increase in residential property taxes for 2025. This proposal includes a 5.4% rise to support the city's operating budget and an additional 1.5% city building levy dedicated to critical infrastructure projects.

This proposed increase is notably lower than the previous year's 9.5% hike, which was the largest since Toronto's amalgamation in 1998. In 2024, the city initially suggested a 10.5% increase but approved a slightly reduced rate after public consultations.

Mayor Olivia Chow and Budget Chief Shelley Carroll announced the 2025 proposal, emphasizing the need for financial sustainability while enhancing city services. Carroll acknowledged the challenges this increase may pose for residents but described it as a necessary investment in Toronto's future.

The additional revenue is slated for key investments, including increased funding for shelters, renter protections, new housing initiatives, and expanded transit services. Specifically, the city plans to support 300 more households through the Rent Bank program and boost transit service hours by 5.8%.

For homeowners, the 6.9% tax hike would mean an annual increase of approximately $210, or about $17.50 per month, based on an average home assessed at $692,031. The 2025 budget also proposes base property tax increases of 2.7% for multi-residential and commercial properties, and 5.4% for industrial properties.

City staff will begin a two-week deliberation period to finalize the 2025 budget, during which public input will be considered. Residents are encouraged to participate in discussions to voice their opinions on the proposed tax changes and planned investments.