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Proposed Property Tax Hike For Toronto Lowered

Proposed Property Tax Hike for Toronto Lowered

Toronto homeowners will not see a double-digit property tax increase.

Mayor Olivia Chow has proposed an 8% hike, 1% lower than what was originally proposed by the city’s budget chief.

When combined with the 1.5% city building levy, taxes will jump by 9.5%, instead of 10.5%, which is still the highest tax increase since amalgamation and surpasses former mayor John Tory’s 7% increase last year.

Chow will also recommend city council raise the multi-residential tax rate by 3.75%, not the suggested 4.5%, to protect tenants from above-guideline rent increases.

A landlord may apply to Ontario’s Landlord and Tenant Board to raise rent above the provincially set guideline when faced with extraordinary costs like substantial property tax increases.

The maximum allowable rent increase for 2023 is 2.5% for rent-controlled units. Tenants that reside in buildings built and first occupied after Nov. 15, 2018, may face a rent increase above this, as these properties aren’t subject to provincial rent control.