Rent Increases in Ontario: The Rules, the 2026 Guideline, and Your Options

Few pieces of mail cause more stress than a notice that your rent is going up. In Ontario, though, rent increases are not a free-for-all — there are clear rules about how much, how often, and how much warning you must get. If you rent your home (or you rent one out), knowing those rules is the difference between paying a lawful increase and paying one you never had to. Here is a plain-language guide, current for 2026.

The 2026 guideline: 2.1%

Each year the province sets a rent increase guideline — the maximum most landlords can raise the rent without special approval. For 2026, the guideline is 2.1%, the lowest in four years (it was 2.5% in both 2024 and 2025). The guideline is tied to the Ontario Consumer Price Index, so it moves with inflation.

What 2.1% means in practice: if your rent is $2,000, a guideline increase adds up to $42 a month ($2,000 × 2.1%). A landlord can raise the rent by less than the guideline, but not by more unless they get the Landlord and Tenant Board (LTB) to approve it (see below).

The three rules that protect you

Even a lawful-sized increase has to follow three timing and notice rules:

• Once every 12 months. Your rent can be increased only if at least **12

months** have passed since the last increase, or since your tenancy began.

• 90 days' written notice. The landlord must give you **written notice at

least 90 days** before the increase takes effect.

• The correct form. For most tenants, the notice must be on the LTB's

official Form N1 (Notice of Rent Increase). A verbal "your rent is going up" or a casual text message does not count.

If any one of these is missing — too soon, too little notice, or the wrong form — the increase generally is not valid, and you do not have to pay it until a proper notice is given.

When the guideline does not apply

This is the part that surprises many renters. The guideline cap does not cover every rental. The most important exemption: new buildings, additions, and most new basement apartments first occupied for residential purposes after November 15, 2018. If your unit falls in that category, your landlord can raise the rent by more than the guideline — the 90-day notice and 12-month rules still apply, but the 2.1% cap does not.

The guideline also does not apply to community (subsidized) housing, long-term care homes, and commercial units, and it does not limit what a landlord can charge a brand-new tenant when a unit turns over — landlord and new tenant negotiate the starting rent freely.

If you are not sure whether your building is exempt, ask when it was first occupied, and confirm with the LTB. It is a common source of disputes.

Above-guideline increases (AGI)

Sometimes a landlord can lawfully raise rent above 2.1% — but only with LTB approval, through an above-guideline increase (AGI) application. Landlords typically apply for an AGI after:

• major capital work (a new roof, elevators, windows, security systems), or
• a large jump in municipal taxes or utilities.

An AGI is not automatic. The landlord must file the application, provide evidence, and the tenants get notice and a chance to respond at a hearing. If you receive an AGI application, you can question whether the work was truly a capital expense, whether it was necessary, and whether the numbers add up.

What to do when you get a notice

• Check the date math. Has it been at least 12 months? Is the effective date

at least 90 days away? Is it on Form N1?

• Compare the amount to 2.1% — unless your unit is exempt or it's an approved

AGI, anything higher is a red flag.

• Do not ignore an AGI application. Read it, note the hearing date, and gather

your own information. Tenants who show up and challenge the figures sometimes see the increase reduced.

• Keep paying valid rent. Disputing an invalid increase is different from

simply withholding rent — get advice before you stop paying anything, because non-payment has its own serious consequences at the LTB.

Where to confirm the rules

• Ontario's official rent increase guideline page:

ontario.ca/page/rent-increase-guideline.

• The Residential Tenancies Act, 2006 on e-Laws:

ontario.ca/laws/statute/06r17.

• The Landlord and Tenant Board — forms (including Form N1), rules and

applications: tribunalsontario.ca/ltb.

Get in touch

A rent increase notice can feel final, but it is only valid if it follows the rules — and plenty do not. If you have received a notice that seems too high, too soon, or on the wrong form, or you are facing an above-guideline increase application, JSR Legals can help you understand your options before the deadline. Reach us at info@jsrlegals.ca.

This article is general information about Ontario law, current as of July 2026, and is not legal advice for any specific situation. Guideline rates, rules and exemptions can change — confirm the current requirements with the LTB or a licensed professional before you act.