Toronto homeowners may see a property tax increase of less than 5% this year, a potential reprieve compared to the substantial hikes of the past two years. This anticipated figure, predicted by Councillor Brad Bradford, represents a possible shift in the city’s financial approach as the budget is debated.
Bradford suggests the lower increase may come at a cost, speculating that Mayor Chow will draw heavily from the city’s reserve funds. He paints a stark picture, comparing the strategy to “burning the furniture to heat the house,” arguing these reserves should be reserved for genuine emergencies, not political maneuvering.
The current situation feels particularly acute for residents who have endured a series of significant tax increases. Under the previous mayor, John Tory, and now Mayor Chow, Torontonians have faced some of the largest property tax hikes in the city’s history since amalgamation – 9.5% in 2024 and 6.9% in 2025 alone.
Bradford emphasizes the cumulative impact of these increases, stating that residents are acutely “feeling it in their wallets.” He believes a more responsible approach would involve a thorough review of city services and a commitment to improved efficiency, a practice last undertaken during Rob Ford’s term in 2012.
The upcoming budget debate takes place against the backdrop of an October election, with Bradford already a declared candidate challenging Mayor Chow. While he intends to oppose the tax increase, he anticipates a relatively swift process, suggesting the proposed rate will be presented without significant deliberation.
Despite the potential for a smaller increase, Bradford warns against complacency. He believes Torontonians have become accustomed to substantial tax hikes and that even a rate two to 2.5 times the rate of inflation is unacceptable given the city’s financial realities.
The city’s expenses have ballooned, with the budget potentially increasing by over $1 billion year-over-year. Contributing factors include a growing city workforce and recently negotiated collective bargaining agreements with unions – the most expensive in the city’s history.
The budget currently being presented is a draft prepared by city staff under the mayor’s direction, following committee debates and public consultations. Mayor Chow is expected to formally introduce her version of the spending plan in early February, with a final council vote scheduled for February 10th.
