Ontario Rent Increase guideline for 2026 is 2.1%
The rent increase guideline for 2026 is 2.1%.
The guideline is the
maximum a landlord can increase most tenants’ rent during a year without the
approval of the Landlord and Tenant Board.
For most tenants,
your rent can’t go up by more than the rent increase guideline for every
year.
The guideline
applies to most private residential rental units covered by the Residential Tenancies Act, 2006. This applies to most tenants, such
as those living in:
- rented houses, apartments,
basement apartments and condos
- care homes
- mobile homes
- land lease communities
The guideline
does not apply to:
- new buildings, additions to
existing buildings and most new basement apartments that are occupied for
the first time for residential purposes after November 15, 2018
- rental units upon turnover of a
tenancy (the landlord and new tenant agree on the rent amount)
- community housing units
- long-term care homes
- commercial properties
Social housing is
covered by the Residential Tenancies Act,
2006, but has different rules regarding rent control
and rent increase notices.
Exceptions
- In some cases, landlords can
apply to the Landlord and Tenant Board for approval to raise your rent (PDF) by more than the rent
increase guideline.
- In care homes (such as a
retirement home), the rent increase guideline only applies to the rent
portion of your bill but does not apply to the cost of services like
nursing, food or cleaning.
- New buildings, additions to
existing buildings and most new basement apartments that are occupied for
the first time for residential purposes after November 15, 2018
are exempt from rent control.
How we calculate the guideline
It is calculated
using the Ontario Consumer Price
Index, a Statistics
Canada tool that measures inflation and economic conditions over a year. Data
from June to May is used to determine the guideline for the following year.
The rent increase
guideline is capped at 2.5% to prevent significant one-time rent increases to
tenants.
A sample calculation of a rent increase
Your monthly rent is
$1,000 when you sign a lease on June 1, 2025.
Your landlord could
lawfully increase your rent payment 12 months later, on June 1, 2026.
The guideline for
2026 is 2.1%. Therefore:
- an increase of 2.1% on $1,000 =
$21.00
- $1,000 + $21.00 = $1,021.00
Your rent following
this lawful increase on June 1, 2026 would be $1,021.00 per month.
Your landlord would
need to provide you written notice at least 90 days before June 1, 2026, in the
proper form available from the Landlord and Tenant Board.
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