2026 Rent Increase Guideline Set at 2.1%
Ontario landlords can raise rent by up to 2.1% starting January 1, 2026. Here's what you need to know about the new guideline.
The Ontario government has announced the rent increase guideline for 2026: 2.1%.
What This Means
Starting January 1, 2026, landlords can raise rent by up to 2.1% without needing LTB approval—as long as you give proper notice.
Who This Applies To
Guideline applies to:
- Most residential rental units in Ontario
- Units first occupied for residential purposes before November 15, 2018
Guideline does NOT apply to:
- Units first occupied after November 15, 2018 (no rent control)
- Community housing
- Long-term care homes
- Commercial units
If your unit was built/first rented after November 2018, you can raise rent by any amount (with proper notice).
How to Raise Rent
- Give proper notice — Use Form N1 (Notice of Rent Increase)
- 90 days minimum — Tenant must receive notice at least 90 days before the increase takes effect
- Once per year — You can only raise rent once every 12 months
- Serve properly — Follow legal service requirements
The Math
| Current Rent | 2.1% Increase | New Rent |
|---|---|---|
| $1,500 | $31.50 | $1,531.50 |
| $2,000 | $42.00 | $2,042.00 |
| $2,500 | $52.50 | $2,552.50 |
Above-Guideline Increases
Want to increase more than 2.1%? You need LTB approval through an Above Guideline Increase (AGI) application.
AGIs are allowed for:
- Extraordinary capital expenditures
- Operating cost increases for utilities, security, or eligible capital work
- Municipal taxes and charges that increased significantly
Timeline for 2026 Increases
To raise rent effective January 1, 2026:
- Serve N1 by October 2, 2025 (90 days before)
To raise rent effective April 1, 2026:
- Serve N1 by January 1, 2026
Recent Guideline History
| Year | Guideline |
|---|---|
| 2026 | 2.1% |
| 2025 | 2.5% |
| 2024 | 2.5% |
| 2023 | 2.5% |
| 2022 | 1.2% |
| 2021 | 0% (COVID freeze) |
For more information, visit the Landlord’s Self-Help Centre or Tribunals Ontario.