Correction, September 24, 2026: an earlier version of this article said the 2026 guideline was 2.5%. That was the 2025 figure. The Government of Ontario set the 2026 guideline at 2.1%. The article has been rewritten and checked against the sources listed below.
The Ontario rent increase guideline for 2026 is 2.1%. The province has also announced 1.9% for 2027. It is the most a landlord can raise the rent for a sitting tenant in a rent-controlled unit without approval from the Landlord and Tenant Board (LTB). By law the guideline can never be more than 2.5%.
How the guideline is set
The province calculates the guideline from the Ontario Consumer Price Index, using data from June to May to set the figure for the following year, and caps it at 2.5%.
- 2023: 2.5%
- 2024: 2.5%
- 2025: 2.5%
- 2026: 2.1%
- 2027: 1.9%
The rules for a rent increase
- Once every 12 months. In most cases rent can go up only if at least 12 months have passed since the last increase or since the tenancy began.
- 90 days' written notice. The landlord must give written notice on the proper form, usually the LTB's Form N1 (Notice of Rent Increase), at least 90 days before the increase takes effect.
- No more than the guideline for a rent-controlled unit, unless the LTB approves an above-guideline increase or the tenant agrees in writing to one of the specific increases the law allows (for example, for an added parking space).
Example: on rent of $2,400 a month, a 2.1% increase in 2026 takes the rent to at most $2,450.40.
Which units are exempt
New buildings, additions to existing buildings and most new basement apartments that were first occupied for residential purposes after November 15, 2018 are exempt from rent control. Landlords of those units can raise the rent by more than the guideline, but they must still follow the once-a-year and 90-day notice rules.
Above-guideline increases
A landlord can apply to the LTB to raise the rent by more than the guideline if municipal taxes and charges have increased significantly, if they have done major repairs or renovations (capital expenditures), or if they have operating costs for security services. Increases for capital expenditures or security services cannot be more than 3% above the guideline in a year. Tenants can take part in the LTB hearing.
Rent deposits earn the guideline rate
If you paid a rent deposit (usually last month's rent), your landlord must pay you interest on it every year at the same rate as the guideline — 2.1% for 2026. The deposit cannot be more than one month's rent for a monthly tenancy.
New tenants
The guideline limits increases for sitting tenants. When a unit is rented to a new tenant, the landlord and the new tenant agree the starting rent.
Frequently asked questions
What is the rent increase guideline for 2026?
2.1%. It applies to most rent-controlled private residential units in Ontario.
Does the guideline apply to my condo built in 2020?
Probably not. Units first occupied for residential purposes after November 15, 2018 are exempt from rent control, but your landlord must still give 90 days' written notice and wait 12 months between increases.
What if my landlord raises the rent without proper notice?
An increase without proper written notice is not valid. You can contact the Landlord and Tenant Board or a community legal clinic for advice before paying it.
Can my landlord raise the rent by more than the guideline?
Only with an order from the LTB (an above-guideline increase), for a unit exempt from rent control, or in the specific cases where the law lets a tenant agree to an increase in writing.
