The City of Toronto is proposing a 5.4 per cent residential property tax increase to help fund a planned $18.8 billion budget for 2025.
Mayor Olivia Chow and budget chief Coun. Shelley Carroll revealed the figure to reporters Monday as part of the city’s proposed budget this year, which includes a 1.5 per cent increase to the City Building Fund.
The combined 6.9 per cent tax increase builds on last year’s record 9.5 per cent hike – the highest since Toronto amalgamated into one city in 1998.
It was Chow’s first budget since she was elected in June 2023, and one she said that while it did increase spending, it met her key priorities.
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Before Monday’s reveal, residents were starting to get an idea of what the 2025 budget would look like as multiple bodies solidified their operating budgets.
Last month, the Toronto Police Service Board approved its 2025 operational budget: a $1.2 billion budget, which would be a $46.2 million increase from last year’s request.
The board said in a news release the funds will support increased frontline and investigative capacity, and the expansion of the Neighbourhood Community Officer Program.
Meanwhile last week, the TTC board approved its 2025 operating and capital budgets, which will freeze fares for the second straight year.
The board said the $2.8-billion ask represents a 6.5 per cent increase over the approved 2024 budgets, and will ensure reliable and affordable service, safety and cleanliness and investments in long-term capital projects.
More to come.
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