Ontario Rent Increase Guide 2026

The 2026 Ontario Rent Increase Guideline

The Ontario government sets an annual rent increase guideline that caps how much most landlords can raise rent. For 2026, you need to know your rights before accepting any rent increase.

The guideline is calculated based on the Ontario Consumer Price Index (CPI) and is capped at 2.5% by law. Check ontario.ca for the official 2026 percentage — the guideline is announced each year by August 31 for the following calendar year.

Key Rules Under the RTA

Notice Requirements (Section 116)

Your landlord must:

• Give you at least 90 days' written notice before a rent increase takes effect
• Use the official N1 form (Notice of Rent Increase) — not a letter, not a text, not a verbal notice
• Not increase rent more than once every 12 months (s. 119)

If your landlord gives you informal notice (email, text, letter), it is not valid. You are not obligated to pay the increase until proper notice is given on the N1 form.

The Guideline Cap (Section 119)

Most rental units in Ontario are subject to rent control, which means:

• The landlord cannot increase rent by more than the annual guideline percentage
• Increases above the guideline require LTB approval through an Above Guideline Increase (AGI) application
• AGIs are only permitted for capital expenditures, increased municipal taxes, or increased security costs

Exemptions from Rent Control

Some units are exempt from the guideline cap:

• Units first occupied for residential purposes after November 15, 2018 are exempt from rent control (this was restored by the More Homes Built Faster Act, 2022)
• Social housing units may have different rules
• Care homes have separate provisions

If your unit was first occupied before November 15, 2018, you have full rent control protection.

What to Do If You Get an Unreasonable Increase

1. Check if it exceeds the guideline — Calculate the percentage increase from your current rent.
2. Check the notice — Was it on the N1 form? Was it at least 90 days before the effective date?
3. Check your unit's status — Is it exempt from rent control (first occupied after Nov 15, 2018)?
4. Dispute if necessary — If the increase is above guideline without LTB approval, you can continue paying your current rent plus the guideline amount.
5. File a T1 application at the LTB if your landlord collected an illegal rent increase.

Above Guideline Increases (AGI)

Landlords may apply to the LTB for an above-guideline increase under sections 126-127 of the RTA. Common reasons include:

• Capital expenditures — Major repairs or renovations (not routine maintenance)
• Municipal taxes — Significant increases in property tax
• Security services — New or increased security costs

AGIs are capped at an additional 3% per year above the guideline, and the LTB must approve them. You have the right to attend the hearing and challenge the application.

Bill 60 (Fighting Delays, Building Faster Act, 2025)

Bill 60 received Royal Assent on November 27, 2025. Schedule 12 of the bill amends the RTA in several ways, including reducing the N4 non-payment notice from 14 to 7 days and requiring tenants to prepay 50% of arrears before raising maintenance defenses. However, as of April 2026, none of the Schedule 12 RTA amendments have been proclaimed into force. No implementing regulations have been filed. The pre-amendment RTA provisions remain the operative law. Monitor the Ontario Gazette for proclamation dates.

RenterShield checks your lease for illegal rent increase provisions. Upload your lease to see if it complies with Ontario law.