Rent increase rules in Ontario

This guide covers Ontario tenancy law only. For other provinces, see our [rental laws guides].

Ontario sets an annual rent increase guideline that caps how much most landlords can raise rent in a given year. The guideline is calculated using Ontario's Consumer Price Index and announced each year by the provincial government. For 2026, the guideline is 2.1%, according to the Landlord and Tenant Board (LTB).

Which Units Does the Guideline Apply To?

The guideline applies to most residential rental units first occupied on or before November 15, 2018. Units first occupied for residential purposes after that date are exempt from the guideline, meaning landlords of those units can raise rent by any amount, provided proper notice is given. Other exemptions include most care homes (for the non-rent portion of charges), commercial units, long-term care homes, and community housing units.

How Often Can Rent Be Increased?

Rent can only be increased once every 12 months. At least 12 months must have passed since either the last rent increase or the date the tenancy began before a landlord can issue a new increase.

What Notice Is Required?

Landlords must give tenants at least 90 days' written notice before a rent increase takes effect, using the correct LTB form. For most rent-controlled units, this is Form N1. Using the wrong form, or providing insufficient notice, can make the increase invalid.

The guideline is not automatic: rent does not increase on its own when the province sets a new rate. The landlord must issue a valid notice each time they wish to raise rent.

Can a Landlord Raise Rent Above the Guideline?

Yes, but only with approval from the LTB through an Above Guideline Increase (AGI) application, filed using Form L5. Landlords can apply for an AGI based on:

• Eligible capital expenditures (such as a new roof or boiler replacement)
• Significant increases in municipal taxes or utility costs
• New or substantially increased security services costs

For capital expenditure and security-related AGIs, the LTB generally caps the approved increase at no more than 3% above the guideline in any one year, meaning a practical ceiling of 5.1% for 2026 in most cases. Any amount beyond that is typically phased in over the following two years.

What Happens if a Landlord Raises Rent Unlawfully?

A tenant is not required to pay a rent increase that exceeds the legal amount or was not issued with proper notice. If a tenant has already paid above the legal limit, they may be entitled to a rent reduction or repayment. Tenants can file a complaint with the LTB if they believe an increase was unlawful.

Bill 60 and Rent-Related Changes

Bill 60, the Fighting Delays, Building Faster Act, was passed on November 24, 2025, and introduced changes to Ontario's rental system affecting lease renewals and eviction timelines. For the most current details on how Bill 60 may affect your tenancy, consult the LTB.

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