Ontario's 2026 Rent Increase Guideline: What Tenants and Landlords Should Know
If you rent your home in Ontario, a rent-increase notice can land in your mailbox at any point in the year — and it's not always obvious whether the number on it is legal. The good news is that, for most tenants, the province sets a clear ceiling. For 2026 that ceiling is 2.1%, the lowest annual rent increase guideline in four years. Here's what that means in practice.
What the guideline is
The rent increase guideline is the maximum percentage a landlord can raise the rent of most existing tenants in a year without getting special approval from the Landlord and Tenant Board (LTB). The Province sets it each year under the Residential Tenancies Act, 2006 (RTA), based on Ontario's Consumer Price Index — a broad measure of inflation. By law, the guideline is capped at a maximum of 2.5%, which is why the 2026 figure of 2.1% sits comfortably under that ceiling.
A practical example: if your rent is $2,000 a month, a guideline increase of 2.1% works out to $42 more per month — not a penny more, unless one of the specific exceptions below applies.
The rules that protect you
Three rules do most of the heavy lifting for tenants:
- Once every 12 months. Your rent can only be increased once at least 12
months have passed since the last increase, or since the day your tenancy began. A landlord can't raise it again just because you signed a new lease.
- At least 90 days' written notice. The landlord must use the LTB's official
form (Form N1, Notice of Rent Increase) and give you the notice at least 90 days before the increase takes effect. A verbal "your rent is going up next month" doesn't count.
- The guideline amount, and no more. Unless the unit is exempt or the LTB has
approved an above-guideline increase, the maximum is 2.1% for 2026.
If a notice misses any of these — wrong form, short notice, or a number above the guideline — the increase is generally not valid, and you have up to 12 months to dispute an improper increase at the LTB.
When the 2.1% cap does not apply
This is where many renters get caught off guard. The guideline does not cover every unit. The biggest exception: newer buildings. Units in buildings, additions, or most new basement apartments first occupied for residential purposes after November 15, 2018 are exempt from the guideline. In those units, a landlord can propose a larger increase — though they still must give proper notice and can only raise rent once a year.
The guideline also doesn't apply to:
- Vacant units between tenants. When you move out and a new tenant moves in,
the landlord and that new tenant can negotiate a fresh starting rent. Rent control follows the tenancy, not the unit.
- Community (social) housing and long-term care homes, which have their own
rules.
- Commercial properties.
after Nov 15, 2018?} B -- Yes --> C[Guideline does not apply
increase can exceed 2.1%] B -- No --> D{Proper Form N1 +
90 days notice?} D -- No --> E[Increase likely invalid
you have 12 months to dispute at LTB] D -- Yes --> F{Increase 2.1% or less?} F -- Yes --> G[Lawful guideline increase] F -- No --> H{LTB approved an
above-guideline increase?} H -- Yes --> I[Allowed up to the approved amount] H -- No --> E
Above-guideline increases
Even for a rent-controlled unit, a landlord can sometimes charge more than 2.1% — but only after applying to the LTB and getting approval. This is an above-guideline increase (AGI), and it's allowed only in limited situations, such as significant capital expenditures (a new roof, major repairs), a large jump in municipal taxes or utilities, or new security services. A landlord can't simply decide to charge more; they must make the case, and you have the right to notice of the application and to respond at a hearing.
What tenants should do
- Check the form and the date. Confirm it's a Form N1 and that you're getting
the full 90 days' notice.
- Do the math. Multiply your current rent by 0.021 (for 2.1%). If the increase
is higher and your unit isn't exempt, something may be wrong.
- Don't ignore it, but don't panic-pay an illegal amount either. If the notice
looks improper, you can raise it with the LTB — generally within 12 months.
What landlords should do
- Use the right form and timing. An informal note or a short-notice increase
can be challenged and set aside.
- Track the 12-month rule carefully for each tenant, measured from the last
increase or the start of the tenancy.
- Apply first for anything above 2.1% on a rent-controlled unit — don't impose
it and hope for the best.
Where to confirm the current numbers
- Ontario's official rent increase page (updated each year):
ontario.ca/page/residential-rent-increases.
- The Landlord and Tenant Board, including Form N1 and dispute applications:
The 2026 guideline applies to increases that take effect during the 2026 calendar year. The Province typically announces the following year's guideline in late June, so the 2027 figure should be published soon — worth watching if you expect a notice later this year.
Get in touch
Rent increases are one of the most common sources of landlord-and-tenant confusion, and the rules are clearer than most people assume. If you've received a notice that doesn't look right — wrong amount, short notice, or an above-guideline increase you want to contest — JSR Legals can help you understand your options and, if needed, bring or respond to an application at the LTB. Reach us at info@jsrlegals.ca.
This article is general information about Ontario law, current as of June 2026, and is not legal advice for any specific situation. Rules, rates and deadlines can change — confirm the current requirements before you act.
Immigration & paralegal practitioner at JSR Immigration & Legals, helping newcomers and Ontario residents with their cases.
This post is general information about Canadian immigration and Ontario paralegal matters and is not legal advice. Rules change and every case is different — confirm current requirements for your own situation.