Free Tool — Ontario Landlords
Ontario Rent Increase Calculator 2026
The Ontario rent increase guideline for 2026 is 2.5%. Use the table below to calculate your new rent, then review notice requirements and exempt units.
2026 Ontario Guideline
Formula: New Rent = Current Rent × 1.025
Set by the Ontario government under the Residential Tenancies Act. Source: Ontario Landlord and Tenant Board.
2026 Rent Increase Examples
| Current Monthly Rent | Max Increase (2.5%) | New Monthly Rent | Annual Increase |
|---|---|---|---|
| $1,000/mo | +$25/mo | $1,025/mo | +$300/yr |
| $1,500/mo | +$37.5/mo | $1,537.5/mo | +$450/yr |
| $2,000/mo | +$50/mo | $2,050/mo | +$600/yr |
| $2,500/mo | +$62.5/mo | $2,562.5/mo | +$750/yr |
| $3,000/mo | +$75/mo | $3,075/mo | +$900/yr |
To calculate your exact amount: multiply your current monthly rent by 0.025. Round to the nearest cent.
Ontario Rent Increase Rules
Notice Requirements
- Minimum 90 days written notice required
- Must use Form N1 (Notice of Rent Increase)
- Notice can be served in person, by mail, or by email (if agreed)
- The 90-day period starts the day after notice is received
Frequency
- Only once every 12 months
- Not allowed in the first 12 months of tenancy
- 12-month period measured from last rent increase or start of tenancy
- Increase cannot exceed the annual guideline for covered units
Exempt Units (No Guideline Cap)
Units first occupied for residential purposes after November 15, 2018 are exempt from the rent increase guideline. This includes:
- New purpose-built rental apartments
- New condo units rented out for the first time
- New houses and townhouses
- Units that were vacant and never previously tenanted
For exempt units, landlords and tenants negotiate rent freely at the start of each tenancy. Existing tenants in exempt units are still protected from arbitrary eviction.
BC vs. Ontario: Key Differences
| Rule | BC 2026 | Ontario 2026 |
|---|---|---|
| Max increase | 3.0% | 2.5% |
| Notice period | 3 months | 90 days |
| New unit exemption | No blanket exemption | Yes (post Nov 2018) |
| Notice form | RTB-7 | Form N1 |
Above-Guideline Increases
Landlords can apply to the LTB for an above-guideline increase (AGI) if they have experienced:
- Extraordinary increases in municipal taxes
- Significant capital expenditures for building improvements
- Significant operating costs due to security services
AGI applications require filing with the LTB and tenants have the right to dispute.
Frequently Asked Questions
What is the Ontario rent increase guideline for 2026?
The Ontario rent increase guideline for 2026 is 2.5%. This is the maximum amount a landlord can increase rent for most residential tenancies covered by the Residential Tenancies Act without applying to the Landlord and Tenant Board.
Which Ontario rental units are exempt from the rent increase guideline?
Residential units first occupied for residential purposes after November 15, 2018 are exempt from the rent increase guideline. This includes new purpose-built rental apartments, new condos, and new houses. These units have no cap on rent increases.
How much notice does an Ontario landlord need to give before raising rent?
Ontario landlords must give at least 90 days' written notice before a rent increase takes effect. The notice must be given on the correct provincial form (Form N1 - Notice of Rent Increase).
How does the Ontario rent increase guideline differ from BC?
The main differences are: Ontario's 2026 guideline is 2.5% vs BC's 3.0%; Ontario requires 90 days' notice while BC requires 3 full months; Ontario has an exemption for units first occupied after November 15, 2018, while BC has no equivalent blanket exemption for newer units.
Related Resources
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