How much will your property tax rise in 2026?

It’s almost September, which means city council is beginning to discuss next year's budget and how much it will cost taxpayers. 

At a press conference on Thursday, Ottawa Mayor Mark Sutcliffe said he’s proposing a 3.75 per cent property tax increase in 2026. In case you need a refresher, last year's increase was 3.9 per cent — higher than the 2.9 per cent increase proposed initially. 

Sutcliffe said the goal is to keep “taxes as low as possible while investing in safety and reliability.” In that budget, most city services would have a cap of being raised by 2.9 per cent, except policing, which could be upwards of 6.5 per cent. 

That would be the force's most significant increase in over a decade and a half, noted Sutcliffe, who said it would help with the new direction of district policing. Such an increase would add $25 million to the police’s operating budget for a total of $414 million. 

“Our residents have been asking for better and more effective policing. They want to see more officers patrolling our streets. They want faster response times. They want to feel safe in their community,” the Mayor said. “We need to support these important changes by investing further in policing and public safety.”

It also seems the mayor may be counting on improved public safety to help him in next year's municipal election. He’s released a series of videos on social media where he highlights the number of new police officers, firefighters, and paramedics who have been hired since his reign. In the same breath, Sutcliffe has stressed how the number of zero-level incidents where no ambulances are available has dropped by 80 per cent this year. 

However, the increased policing budget is facing some opposition. Advocacy group Horizon Ottawa said that money could be better spent on other core city services, like transit, which is not seeing as much investment. 

“Residents deserve a budget built on facts and evidence, not anecdotes and political talking points,” said Tom Ledgley, the Coordinator of Horizon Ottawa. “Ottawa has deep challenges with housing, transit, and affordability, none of which are solved by pouring more money into policing. At a time when the cost of living is rising and people are struggling, the mayor is choosing to spend millions more on policing while offering residents less and less in return.”

The Mayor sees it differently. Sutcliffe said the transit levy could increase between three and 15 per cent in 2026, but that also comes with higher fares, which could see between a 2.5 per cent and 7.5 per cent jump next year

How would that impact your wallet? If the increase is in the lower end of 2.5 per cent, an adult monthly pass would cost $138 — a $3 increase. But if it was hiked 7.5 per cent, expect to pay $10 more at $145 per month. 

“Public transit is vitally important to our community and to our economy,” Sutcliffe said. “Earlier this year, we successfully launched Lines 2 and 4 of light rail, and in the coming months, we’ll open the eastern extension of Line 1 to Orléans—another huge milestone for transit,” said Sutcliffe. “We’re also continuing to purchase more electric buses to make our transit service greener and more reliable… These improvements cost money, so another boost in transit funding is required.”

The funding gap for OC Transpo’s long-range forecast is high. Projections show it being between $8 billion and $9 billion by 2048.

City staff are asked to find efficiencies to ensure the increase is as minimal as possible. That could include defering on some projects and relying on the province to follow through with its plan to offload the city’s light rail system. 

Garbage fees are expected to go up 10 per cent, totalling a $2 increase for most families per month. Recreation fees would see a smaller jump at 2.9 per cent. 

Ottawa residents pay less property taxes than other Canadian cities, says the Mayor 

When Sutcliffe first ran for mayor, he campaigned to keep tax increases below 2.5 per cent during his first two years in office — which he did. Since 2022, Sutcliffe noted that over $207 million in efficiencies and savings have been found. Without it, he said the equivalent would have been a 10 per cent tax increase — or an average $415 a year per household. 

“We’ve been respecting the affordability crisis facing our residents by keeping tax increases as low as possible, in fact, lower than any other major city in Canada,” said Sutcliffe.

Investments have also come from other levels of government. The provincial governments' “New Deal for Ottawa” — which came after Sutcliffe’s “Fairness for Ottawa” campaign — brings with it more than $535 million. Highlights include finding ways to revitalize the downtown core, a new Kanata North transitway, constructing the Highway 416/Barnsdale Road interchange, and giving ownership of Highway 174 back to the province. There was also a commitment from the Premier during this year's provincial election to upload the city’s LRT system to the Ontario government, but some of these files have seen little to no advancement. 

On the federal side, Sutcliffe has said he’s had talks with Prime Minister and Nepean MP Mark Carney over building more affordable housing, revitalizing downtown, and transit. In January, the feds announced it would give the city $180 million over 10 years; however, it was not to be used for operating costs.

None of the projections for the 2026 budget has been voted on and are subject to change. The Finance and Corporate Services Committee will meet on Sept. 2 to discuss the budget directions, with the draft budget being tabled to council on Nov. 12. The final vote will then wrap up on Dec. 10.