Ontario 2026 Rent Cap Lowest in Four Years

For the first time since 2022, the Ontario government‘s approved residential rent increase is under 2.5% for the ensuing year.

In 2026, landlords of ‘rent-controlled’ units can raise their tenants’ rent by no more than 2.1%, without prior approval of the Landlord and Tenant Board (LTB).

Tenants of residential units occupied for the first time after Nov. 15, 2018 — in other words, ‘non-rent-controlled’ units — may face a larger rent increase, so long as proper notice is given.

A landlord may only raise rent if they give their tenant at least 90 days written notice using the correct form (typically a N1). In addition, at least 12 months must have passed since the first day of the tenancy or the last rent increase. If a tenant believes they have received an improper rent increase, they can apply to the LTB to request a correction.

The Ontario government announced the maximum allowable increase in June, citing the lower rent cap will help protect tenants amid ongoing economic challenges and rising costs.

The guideline is based on the province’s Consumer Price Index, a measure of inflation calculated by Statistics Canada using data that reflects economic conditions over the past year.

The approved rent increase goes into effect January 1.