Ottawa Proposes 3.75% Property Tax Hike, Higher Transit Fares for 2026

Ottawa residents can expect to pay more for city services next year under the draft 2026 budget unveiled at City Hall on Wednesday. The spending plan outlines a 3.75 per cent property tax increase, along with higher costs for transit, recreation, parking, water, and waste collection.

The release of the budget marks the start of a month-long review before the final vote in December.

Mayor Mark Sutcliffe described the proposed plan as an effort to maintain stability while keeping affordability at the forefront.

“This budget reflects careful decision-making,” Sutcliffe said. “We’re managing finances the same way many families and small businesses are — responsibly and with caution.”

What the Tax Increase Means for Homeowners

If approved, the 3.75 per cent tax hike would translate to an additional $166 on the average property tax bill. When combined with scheduled increases to water rates ($47.30) and solid waste fees ($24), the typical household would see annual costs rise by approximately $237.

The mayor emphasized that Ottawa is avoiding the steeper hikes seen in other major cities. He referenced Toronto’s recently approved 6.9 per cent property tax jump, calling it unaffordable for Ottawa residents.

Where the Money Will Go

The budget proposes increases across several major city services:

• Transit levy: +8%

• Police budget: +5%

• 23 new paramedics hired

• 25 new police officers added to the force

• $23.25 million for 350 new affordable housing units

• $400,000 toward the Youth Homelessness Action Plan

• $476,000 for food security initiatives

The city’s $1.92 billion capital plan includes major infrastructure and community investments:

• $135M for road resurfacing

• $75M to maintain community centres and parks

• $59.6M for pedestrian and cycling improvements

• $47.6M for new OC Transpo buses, including zero-emission vehicles

• $39M to build and upgrade parks

• $25.4M for sidewalk replacement

• $9M for the Climate Change Master Plan

• $3.6M for rural drainage projects

• $3.6M to replace firefighter breathing equipment

• $3M for enhanced winter operations

• $2.3M for tree planting

• $1.9M to support the 200th anniversary of Bytown and the ByWard Market

“We’re making substantial progress on the priorities residents identified,” Sutcliffe said. “These are significant, not incremental, investments.”

Transit: Higher Fares Coming

OC Transpo’s proposed $938.7 million budget includes:

• A 2.5% transit fare increase

• An 8% increase to the transit levy on property tax bills

If approved:

• Adult monthly passes will rise to $138.50

• Senior passes will reach $59.75

• Single-ride fares will increase to $4.10 (Presto/debit/credit) or $4.15 (cash)

A $46 million funding placeholder remains in the transit budget as the city negotiates with the Ontario government on the potential upload of the LRT to Metrolinx. City treasurer Cyril Rodgers said he anticipates some form of provincial support as discussions continue.

However, some councillors remain skeptical. Kitchissippi Coun. Jeff Leiper questioned whether the transit levy hike is enough to improve struggling services.

“For many residents, the status quo isn’t working,” Leiper said, citing ongoing concerns about road quality, unreliable bus service, and the opioid crisis. He also doubted the province would fill the transit funding gap.

OC Transpo expects the eastward extension of the O-Train Line 1 to open in 2026.

Next Steps

City committees and boards will review and vote on portions of the budget between Nov. 19 and Dec. 8. The full budget is scheduled for final approval by council on Dec. 10.