Toronto council finishes deliberations on 2.2% tax increase

Toronto Mayor Olivia Chow’s budget has passed through its final council test with relatively little drama, confirming a 2.2 per cent tax increase ahead of an election year.

In early January, city staff revealed Toronto’s proposed 2026 budget, with a tax increase that was drastically lower than the 9.5 and 6.9 per cent increases approved in the past two years.

Chow, who has enhanced powers to dictate the budget process, proposed a similar version of the city’s document at the beginning of February, maintaining the low tax increase.

City staff, allies of the mayor and Chow herself all said the budget was designed with affordability in mind, limiting tax increases in a difficult year as the country’s economic picture continues to worsen.

“Families are feeling the squeeze from the high cost of living. My budget is about making life more affordable for Torontonians,” Chow said when she tabled her budget.

While the mayor has significant powers to ensure the budget is passed in her image — and can overrule up to two-thirds of council — Tuesday was a chance for her political critics to challenge her plan and suggest their alternatives.

5:00 Mayor Olivia Chow unveils 2026 Toronto budget focused on affordability

Coun. Brad Bradford, who has already announced he plans to run to be mayor in October’s municipal election, was the budget’s sharpest critic — accusing Chow of using long-term savings accounts to create an artificially lower property tax increase.

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“You’re effectively trying to buy Torontonians’ votes with your budget,” Bradford told Chow during an exchange on Tuesday morning, claiming the plan was “financial malpractice.”

Later, he added: “That is not sustainable. While the mayor is celebrating an inflationary tax increase during an election year, what she is really doing is delaying the pain for Torontonians.”

Chow herself has not officially confirmed if she will run again in October and has lauded the budget’s affordability measures. In particular, she has promoted a fare freeze on TTC fares, school meal funding and aid for renters and some renovations.

The mayor’s allies also defended the budget’s low increase as a reward for difficult decisions in previous years.

“Let’s not kid ourselves, this is a good budget, it’s for affordability, it’s for caring, and it’s for safety in the city,” Coun. Paula Fletcher told reporters. “The investments have been made, the money has been saved.”

October’s municipal elections — and the maneuvering taking place ahead of them — also appear to be part of the equation.

“We’re in politics, I think everyone’s always constantly thinking about those prospects,” Coun. Amber Morley said.

Under her strong mayor powers, Chow’s budget will now be adopted.