Ontario Landlord Compliance · Raise the rent

Ontario 2026 Rent Increase Guideline Is 2.1%: What Landlords Can Charge and How to Give Notice

A landlord with a tenant paying $1,800 a month and a lease anniversary coming up has one number to work from: 2.1%. For any rent increase taking effect between January 1 and December 31, 2026, that is the most an Ontario landlord can ask for without applying to the Landlord and Tenant Board, which works out to $37.80 on that rent.

Written by Platuni

The short answer

1.The 2026 rent increase guideline in Ontario is 2.1%. It applies to increases that take effect between January 1 and December 31, 2026.
2.The guideline is the average of Ontario's monthly Consumer Price Index changes over the 12 months from June 2024 to May 2025.
3.It is lower than the 2.5% guideline that applied in 2025, and the Government of Ontario announced it on July 2, 2025, according to news and trade reporting.
4.A landlord must give at least 90 days' written notice on the official form, and cannot raise the rent until 12 months after the last increase or the start of the tenancy.
5.Units first occupied for residential purposes after November 15, 2018 are not covered by the guideline, nor are vacant units between tenancies, community housing and long-term care homes.
6.A landlord who needs more than 2.1% has to apply to the Board for an above-guideline increase, which is not automatic.

This covers

· Ontario landlords and property managers setting 2026 rent increases for covered units
· How the 2.1% figure is calculated and which increases it applies to
· Notice and timing rules for a guideline increase
· Which units fall outside the guideline

Usually exempt

· Units first occupied after November 15, 2018, which are exempt from rent control
· Vacant units between tenancies, where a landlord can set a new starting rent
· Community housing, long-term care homes and commercial tenancies, which sit outside the guideline
· This article does not cover above-guideline increase applications in detail

1. Why 2.1% is the number for 2026

The Residential Tenancies Act ties the guideline to inflation. The 2026 figure was calculated by averaging the percentage change in Ontario's Consumer Price Index for each of the 12 months from June 2024 to May 2025.

[Cite: City of Kingston, "2026 Rent Control Guideline (H-25-04)"; Residential Tenancies Act, 2006, s. 120]

Reporting on the announcement describes it as the lowest guideline in four years. That follows three years at 2.5%, the level at which the guideline sat for 2023, 2024 and 2025.

[Cite: Storeys, "Ontario rent increase guideline 2026"; Government of Ontario, 2025 guideline release (June 28, 2024)]

2. Which increases the 2.1% applies to

The guideline applies to rent increases that take effect between January 1 and December 31, 2026. What matters is the date the increase takes effect, not the date the notice was served.

[Cite: City of Kingston, "2026 Rent Control Guideline (H-25-04)"; Rentals.ca, "Ontario's 2026 rent increase guideline"]

A landlord who served notice in September 2025 for a January 1, 2026 increase therefore uses 2.1%. One who served notice for a December 2025 increase uses the 2025 figure of 2.5%.

3. A worked example

On a rent of $1,800, a 2.1% increase is $37.80, taking the new rent to $1,837.80. On $2,400, the maximum is $50.40, for a new rent of $2,450.40.

A landlord who rounds up to the next whole dollar has exceeded the guideline by a few cents, and that is still an above-guideline increase. Keep the calculation to the cent and keep a copy with the notice.

4. Notice and timing rules

A landlord must give the tenant at least 90 days' written notice on the official government form, and the increase cannot take effect until 12 months after the last increase or after the start of the tenancy.

[Cite: Rentals.ca, "Ontario's 2026 rent increase guideline"; Storeys, "Ontario rent increase guideline 2026"; Cohen Highley, "2026 Rent Increase Guideline"]

A notice that gives less than 90 days, or uses the wrong form, is open to challenge. The practical fix is to count back 90 days from the intended effective date and add a buffer for how the notice will be served.

5. Units the guideline does not cover

A unit first occupied for residential purposes after November 15, 2018 is exempt from the guideline altogether, and the landlord can raise the rent by any amount once the 90-day and 12-month rules are met. The guideline also does not apply to vacant units between tenancies, community housing, long-term care homes or commercial rentals.

[Cite: Storeys, "Ontario rent increase guideline 2026"; Cohen Highley, "2026 Rent Increase Guideline"]

Property managers with mixed buildings should sort units by first-occupancy date before setting increases. The same building can hold units that are capped at 2.1% and units that are not.

6. Above-guideline increases

A landlord who wants to exceed 2.1% for a covered unit has to apply to the Landlord and Tenant Board. Applications are usually based on significant capital work, extraordinary increases in municipal taxes or utilities, or new security services, and the Board decides whether the increase is justified.

[Cite: Rentals.ca, "Ontario's 2026 rent increase guideline"; Storeys, "Ontario rent increase guideline 2026"]

Reporting on the 2026 announcement notes that these applications have risen sharply in recent years. A landlord planning one should assume documentation will be tested and a decision will take time.

7. What the 2027 guideline means for planning

A separate guideline of 1.9% applies to increases taking effect in 2027. A landlord planning staggered lease anniversaries across two calendar years should calculate each increase against the guideline for the year it takes effect.

[Cite: Ontario.ca, "Residential rent increases"]

Because the 2027 figure is lower, an increase that takes effect on January 1, 2027 cannot rely on the 2026 percentage even if the notice went out in 2026.

8. What property managers should do now

Build the 2.1% figure into the rent-increase template and calculate each increase against the unit's effective date, not the date of notice. Record each unit's first-occupancy date so exempt units are identified correctly.

Keep a copy of the notice, the proof of service and the calculation. If a tenant disputes an increase, those three documents decide the question.

Reading this as a tenant?

If your landlord gives notice of a rent increase taking effect in 2026, the most they can ask for without Board approval is 2.1% of your current rent, unless your unit was first occupied after November 15, 2018. You are entitled to at least 90 days' written notice on the official form, and at least 12 months between increases. If the notice does not meet those rules, check with a tenant legal clinic before you pay the higher amount.

Sources and review

1.Residential Tenancies Act, 2006, S.O. 2006, c. 17, s. 120 (annual rent increase guideline).
2.City of Kingston, "2026 Rent Control Guideline (H-25-04)," August 26, 2025.
3.Storeys, "Ontario rent increase guideline 2026."
4.Rentals.ca, "Ontario's 2026 rent increase guideline: a complete guide for renters and landlords."
5.Cohen Highley LLP, "2026 Rent Increase Guideline."
6.Government of Ontario news release on the 2025 guideline, June 28, 2024, as reproduced by Stephen Lecce, MPP.
7.Ontario.ca, "Residential rent increases" (2027 guideline).

Substantive review means an editor re-checked each cited section against the current code, not that the page was re-saved. Corrections: compliance@platuni.com.

Frequently asked questions

What is Ontario's rent increase guideline for 2026?

2.1%, for increases taking effect between January 1 and December 31, 2026.

How is the guideline calculated?

It is the average of the monthly changes in Ontario's Consumer Price Index over the 12 months from June 2024 to May 2025.

How much notice does a landlord have to give?

At least 90 days' written notice on the official form, with 12 months between increases.

Does the guideline apply to every Ontario rental?

No. Units first occupied after November 15, 2018, vacant units, community housing, long-term care homes and commercial rentals are outside it.

Can a landlord raise rent by more than 2.1%?

Only for exempt units, or by applying to the Landlord and Tenant Board for an above-guideline increase.

When was the 2026 guideline announced?

Trade reporting dates the announcement to July 2, 2025. The provincial bulletin itself could not be read directly during research.