The Toronto City Council has approved the 2026 budget put forward by Mayor Olivia Chow, which outlines several key financial measures for the coming year. Among the most notable elements of the budget is a modest increase in property tax, new caps on public transit fares, and an increased allocation of funds for the Toronto Police Service.
The property tax increase has been set at 2.2 percent, a significant reduction compared to the previous year’s hike of 6.9 percent, as well as the 9.5 percent increase in 2024. This adjustment translates to an additional annual cost of approximately $91.53 for the average Toronto home, which holds an assessed value of $692,140. This strategy reflects the city’s intention to manage budgetary constraints while still ensuring necessary funding for essential services.
In addition to the property tax adjustments, the budget also implements a fare freeze for the Toronto Transit Commission (TTC). This includes a new fare cap that will be set at 47 rides in a calendar month, which is expected to take effect later this year. The move aims to retain affordability in public transit for residents, making it easier for them to access transportation without incurring excessive costs.
The budget has also prioritized social services, with plans to combat homelessness, increase the accessibility of libraries by opening them seven days a week, and enhance the hiring of additional police officers and paramedics as part of a multi-year strategy. These measures reflect a balanced approach to public service funding, addressing both safety and social welfare concerns within the city.
Mayor Olivia Chow has faced criticism regarding the substantial increase of over $93 million in funding for the Toronto Police Service, particularly in the context of a recently disclosed corruption investigation that resulted in charges against seven current officers. Despite the concerns, Chow has defended the funding increase, emphasizing the city's obligation to honor the police force’s collective agreement and hiring plan. This stance highlights the ongoing challenge of maintaining public safety while addressing accountability and integrity within law enforcement.
Overall, the 2026 budget represents a structured financial framework aiming to balance multiple community needs, fostering both public safety and social support systems. The decisions made by the Toronto City Council encapsulate the complexities of urban governance, reflecting the city’s commitment to addressing immediate financial concerns while planning for long-term sustainability and equity across various public service sectors.
