The City of Toronto’s 2025 budget process has begun with a 6.9% property tax increase being suggested by Mayor Olivia Chow and budget committee chair Councillor Shelley Carroll.
Chow says the tax hike — comprised of a 5.4% increase to support Toronto’s $18.8-billion operating budget plus the 1.5% increase in the city building levy for capital expenditures on transit and housing — prioritizes investments on affordability, transportation, safety and community services
“The 2025 budget will mean change in Torontonians’ lives today,” the mayor said in a statement Monday.
“Change means libraries open 7 days a week, transit fares frozen while TTC service increases, thousands more kids fed meals at school and summer camps, pools open sooner and longer. Renovictions prevented by taking housing off the market and more support for tenants. Traffic agents to keep Toronto moving. Emergency responders arriving sooner when you need them most,” she added.
The tax hike, however, isn’t in stone as the spending plan undergoes committee review and public consultations for the next two weeks before Chow has to formally table her budget by Feb. 1 and then it goes to council on Feb. 11.
Some councillors, however, have already voiced their concern about the proposed property tax increase.
“It’s significant at a time when the city has never been more expensive to live in,” Councillor Brad Bradford told reporters at City Hall.
“I think a lot of folks are concerned about their grocery bill, they’re concerned about putting fuel in the tank. We’ve got incoming tariffs with the new Trump administration so things in Canada could get a lot more expensive.
“The only thing that we can control at City Hall is the biggest bill that you pay every year, which is your property tax bill, and yet this year the mayor comes forward with one that is triple the rate of inflation. I think that’s going to be concerning for a lot of Torontonians.”
Added Councillor Jon Burnside: “It’s totally the mayor’s budget. The priorities are the mayor’s and contracts. Let’s look at the TTC contract. Love TTC employees, but by their own leadership account it was a groundbreaking contract and one of a kind and we are giving out those types of contracts that then sets the stage for other city unions, such our (CUPE) Local(s) 416 and 79, you’re setting yourself up for a really bad budget season.”
The city is already looking at a $1.2-billion budget shortfall in 2025 which is still less than the $1.8 million it was facing in 2024. The 2025 proposed property tax increase is lower than the 9.5% raise Chow imposed last year in her first budget as mayor which was the highest in two decades.