Ontario rent increase guideline: 2026 and 2027
Each year Ontario sets a rent increase guideline, the most a landlord can raise the rent for a sitting tenant without approval from the Landlord and Tenant Board. It's based on the Ontario Consumer Price Index.
The numbers
- 2025: 2.5%
- 2026: 2.1%
- 2027: 1.9%
The guideline applies to increases that take effect during that calendar year.
The rules for a rent increase
- Rent can generally go up only once every 12 months, counted from the move-in date or the last increase.
- The landlord must give at least 90 days' written notice on the proper LTB form (usually Form N1).
- Going above the guideline requires an above-guideline increase application to the LTB, for example after major repairs.
Units that are exempt
Units that were first occupied for residential purposes after November 15, 2018 are generally exempt from the guideline. That includes many new condos and many newly created basement apartments. For these units there is no cap on the increase, but the 12-month and 90-day notice rules still apply.
New tenancies
The guideline limits increases for a tenant who is already living in the unit. When a unit is rented to a new tenant, the landlord can set the starting rent.
Interest on rent deposits
The guideline also sets the interest a landlord pays on a last month's rent deposit each year. See rent deposit rules.