City of Toronto Launches 2026 Budget
On January 8, 2026, the City of Toronto officially launched and released its 2026 staff-prepared budget, which aims to prioritize affordability through its $18.9 billion operating budget and $63.1 billion Capital Budget & Plan (2026-2035), which is the largest 10-year Capital Plan in the city’s history.
Budget Priorities & Investments
Following public consultation and participation, affordability was determined to be the Budget’s key priority. To address this focus and improve the city’s aging infrastructure, the proposed $18.9 million operating budget will focus on transit, emergency services, and social supports. Targeted investments will include:
Making Life More Affordable
- 757 school and camp communities provided Food Programs (base investment)
- 2700 households supported by Rent Bank (base investment)
- 155 new school communities (Budget 2026 enhanced investment)
- 96 new camp nutrition locations (Budget 2026 enhanced investment)
Moving Toronto Better
- 100 Traffic Agents to improve intersections and travel times (base investment)
- 27 additional Traffic Agents (Budget 2026 enhanced investment)
- TTC fare capping (Budget 2026 enhanced investment)
Delivering a Safer Toronto for Everyone
- 9459 emergency positions (base investment)
- 12 libraries with Social & Crisis Support available (base investment)
- 258 new emergency positions supporting response times (Budget 2026 enhanced investment)
- 4 more libraries with Social & Crisis Support (Budget 2026 enhanced investment)
- RentSafeTO, including the roll-out of colour-coded ratings to 3600 buildings (Budget 2026 enhanced investment)
- Enhanced Crisis Services on the transit system (Budget 2026 enhanced investment)
Providing Excellent Community Services
- 83 libraries with Open Hours (base investment)
- 489 AC units for low-income seniors with health needs (base investment)
- 17 more libraries with Open Hours (Budget 2026 enhanced investment)
- 1000+ AC units for low-income vulnerable residents (Budget 2026 enhanced investment)
- New Green Infrastructure Incentives and Rain Barrel Programs (Budget 2026 enhanced investment)
Fiscal Highlights
- 7% levy increase to support operating pressures
- $788 million in reductions and offsets identified
- 2% residential property tax increase
- Draws $1.7 billion from reserved funds
- Continued 15% property tax rate reduction for over 28,000 small businesses
- Continued 15% property tax discount for new multi-residential properties to promote housing availability
- Continued multi-year approach to stabilize finances
Technology Opportunities Through Budget 2026 Reductions: Efficiencies
BudgetTO 2026 plans to improve efficiencies, which will advance $57 million in permanent savings from processes, technology, and resource improvements. This presents an opportunity for those in the IT sector as the City will seek to streamline its service delivery and optimized resources; improve purchasing and contracts; and utilize automation to simplify administration. Key technology efficiencies examples listed include:
- Rationalization of technology
- Effective license management
- Decommissioning of legacy solutions
- Device management
- Consultants and contracted services review
- Leveraged corporate expertise to eliminate duplication
- Parking Authority insurance and cyber security
- Library and Zoo technology optimization
Budget Timeline and What to Watch
As the next steps of the Budget process, Ontario provincial legislation requires the Mayor to present a budget to City Council by February 1, with City Council scheduled to consider the 2026 Budget at a special meeting on February 10. In the meantime, public Telephone Townhalls are scheduled for January 14 & 15, which will be followed by public meetings on January 20 & 21 with the Budget Committee. Residents and businesses can also participate in the budget approval process through providing feedback for consideration to the Budget Committee.
Following BudgetTO 2026 finalization, it will be worthwhile to watch how the municipal government will drive efficiencies through technology and secure long-term funding partnerships with the federal and provincial governments throughout the year.