Ontario Rent Guideline 2026 | Own In Toronto
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Landlords & Tenants

Ontario Rent
Guideline 2026

The rules haven't changed — but the number has. Here's exactly what Ontario's 2026 rent increase guideline means for landlords and tenants in Toronto.

📋 2026 guideline: 2.1%  ·  Units first occupied after Nov 15, 2018 are exempt from rent control  ·  90 days' written notice required
01
The Number

Ontario's 2026 Rent Increase Guideline

Each year, the Ontario government sets a rent increase guideline — the maximum percentage by which a landlord can raise the rent for eligible tenants without approval from the Landlord and Tenant Board (LTB). For 2026, that number is 2.1%.

The guideline applies to rent increases that take effect on or after January 1, 2026. If a landlord already issued a notice of rent increase before December 31, 2025 using the 2025 guideline, that increase is still valid — the 2026 guideline applies to new notices going forward.

2.1%
Ontario Rent Increase Guideline — 2026
Maximum a landlord can raise rent for eligible tenants without LTB approval. Set annually by the Province of Ontario under the Residential Tenancies Act.
Note: The guideline rate is not automatic — a landlord must still give proper written notice and follow all procedural rules. Simply knowing the rate doesn't entitle a landlord to raise the rent.
Source Ontario.ca — Residential Rent Increases (Landlord and Tenant Board)
02
Eligibility

Which Rental Units Does the Guideline Cover?

Not all rental units in Ontario are subject to the rent increase guideline. Whether or not your unit falls under rent control depends primarily on when it was first occupied for residential purposes.

The key date is November 15, 2018. Units that were first occupied before that date are subject to the annual guideline. Units first occupied on or after that date are exempt — landlords can raise the rent by any amount between tenancies, though existing tenants still have protections during their tenancy.

Covered by Rent Control
  • Units first occupied before Nov 15, 2018 — the 2.1% guideline applies
  • Most older Toronto condos, houses, and apartments fall into this category
  • Includes basement apartments in homes built before that date
  • Increases during a tenancy are capped at the guideline rate
Exempt from Rent Control
  • Units first occupied on or after Nov 15, 2018 — no guideline cap applies
  • New condo buildings, newly built purpose-built rentals, new basement suites
  • Landlords can raise rent to market rate between tenancies
  • During an ongoing tenancy, a landlord still cannot raise rent more than once in 12 months
Important Distinction
Rent control in Ontario is tied to the unit, not the tenant. If a new tenant moves into an exempt unit, the landlord can set rent at any amount. But once a lease is signed and a tenancy is active, a landlord in an exempt unit still cannot raise rent more than once per 12-month period — they simply aren't limited to 2.1% when they do.
03
The Math

How to Calculate Your 2026 Rent Increase

Calculating the maximum allowable rent increase under the 2026 guideline is straightforward. Multiply the current monthly rent by 1.021 (which is 100% + 2.1%). The result is the maximum new rent. Landlords can choose to raise rent by less than the guideline — there is no minimum.

Below are three worked examples at common Toronto rent levels. These figures represent the maximum a landlord could charge under the guideline — not a requirement to increase by this amount.

Example A — Current Rent: $1,800/month
Current monthly rent$1,800.00
2.1% guideline increase+ $37.80
Maximum new rent (2026)$1,837.80
Example B — Current Rent: $2,400/month
Current monthly rent$2,400.00
2.1% guideline increase+ $50.40
Maximum new rent (2026)$2,450.40
Example C — Current Rent: $3,200/month
Current monthly rent$3,200.00
2.1% guideline increase+ $67.20
Maximum new rent (2026)$3,267.20
Rounding: Ontario's rules allow landlords to round to the nearest dollar if the calculated new rent is not a round number. Always confirm the exact figure using the official LTB guideline calculator.
04
The Rules

Notice Requirements Every Landlord Must Follow

Knowing the guideline rate is only part of the picture. A rent increase is only valid if the landlord follows the proper process — including giving the tenant sufficient notice in the correct form. Failing to follow these rules means the increase is void, regardless of the amount.

📅
90 Days' Written Notice Required
Landlords must give the tenant at least 90 days' written notice before a rent increase takes effect. A verbal notice, email, or text message is not sufficient — the notice must be in writing.
📝
Use the Official LTB Form (N1)
The standard notice of rent increase form is the LTB's Form N1. Using this form is strongly recommended to ensure all required information is included. It is available free on the LTB website.
📆
Maximum One Increase per 12 Months
Regardless of whether a unit is rent-controlled, a landlord can only raise the rent once in any 12-month period. A second increase within 12 months of the first is void and unenforceable.
🏠
The Unit Must Be Eligible
Certain units are exempt from the Residential Tenancies Act altogether — including units in buildings with three or fewer units where the landlord lives in the building, care homes, and some social housing. These may have different rules.
Tenant's rights: If a landlord raises rent without proper notice, or raises it above the allowable guideline for a rent-controlled unit, the tenant can file an application with the Landlord and Tenant Board. The LTB can order the increase to be void and require the overpaid amount to be returned.
05
Exceptions

When Can a Landlord Raise Rent Above 2.1%?

For rent-controlled units, a landlord who wants to raise rent above the 2.1% guideline must apply to the Landlord and Tenant Board for an Above Guideline Increase (AGI). This is not a simple process — the landlord must prove one or more qualifying grounds, and the LTB will review and approve or deny the application.

AGI applications are relatively uncommon, but they do happen — particularly for landlords who have made significant capital improvements to a property or experienced extraordinary operating cost increases. Here are the main grounds on which an AGI can be approved:

01
Extraordinary Increase in Operating Costs

If the landlord's costs for utilities (hydro, gas, water) or property taxes have increased by more than the guideline due to factors outside their control, they may apply for an AGI to recover those costs.

02
Capital Expenditures (Major Renovations)

Landlords who have made significant capital expenditures — such as replacing a roof, windows, or major mechanical systems — may be eligible to pass a portion of those costs on to tenants through an above-guideline increase.

03
Security Services Cost Increases

If a building has added or significantly expanded security services (such as a concierge or on-site security personnel) that benefit all tenants, those costs may qualify as a basis for an AGI.

AGI Process Takes Time
Applying for an above-guideline increase does not mean the increase takes effect immediately. The LTB schedules hearings, tenants have the right to contest the application, and the process can take many months. Landlords should plan accordingly.
Source Landlord and Tenant Board — Forms and Information (tribunalsontario.ca)
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