The '311' on Toronto's 2026 City Budget
Rethinking Toronto’s 2026 Budget: Property Taxes, Transit, Housing, and the Deficit
As Toronto begins its 2026 budget consultation process, the same long‑standing challenges continue to dominate public discussion: property taxes, transit and traffic congestion, housing affordability, cost of living, and the city’s structural budget deficit. After following the consultations, I believe Toronto needs bolder, more targeted approaches in each of these areas.
1. Property Tax Reform for a Modern Toronto
Toronto still bases residential and commercial property tax rates almost entirely on assessed value. This ignores how differently households and businesses use city services.
- A household with no car pays the same rate as one with multiple vehicles.
- Properties powered by renewable energy receive no tax advantage over high‑emission peers.
- Toronto‑based manufacturers that hire local workers pay the same rate as companies that outsource jobs.
A modern tax system should reward transit use, renewable energy adoption, and local employment, aligning tax policy with the city’s economic and environmental goals.
Toronto already has the data infrastructure to support this kind of evidence‑based reform — an approach I explore in more detail on my Interactive Statistics Education Add‑In blog.
2. Transit and Traffic: Updating a 1950s Road System
Despite billions invested in public transit, Toronto still manages its roads as if congestion isn’t a daily reality. The city should explore:
- Designating Lakeshore Boulevard for multi‑occupant vehicles only, with fines for single‑occupant drivers.
- Restricting tinted windows on key corridors to support enforcement.
- Prioritizing public‑service vehicles on the Gardiner Expressway, including TTC, GO Transit, taxis, and limousines.
- Streamlining bike lane routes and improving enforcement for both drivers and cyclists.
If Toronto wants to reduce gridlock, road rules must evolve alongside transit investments.
I’ve written more about modernizing Toronto’s transportation and enforcement systems on We Protect T.O.R.O.N.T.O., including practical, data‑supported approaches to congestion and safety.
3. Housing and Cost of Living: Targeted Relief and Smarter Supports
With today’s Big Data capabilities, Toronto can deliver more precise support to residents:
- Toronto Hydro could identify low‑income households (under $30,000) and offer temporary hydro relief.
- Households that invest in gardens, pets, and other climate‑positive activities receive no recognition on their tax bills, despite supporting local businesses and environmental goals.
- Small grocers that source local produce could receive property tax incentives, helping reduce food costs for residents.
On homelessness, the city should prioritize guaranteeing every resident a safe, clean place to sleep nightly, paired with mental‑health supports, before transitioning individuals to long‑term housing.
These kinds of targeted, data‑driven interventions mirror the modelling approaches I teach on the Interactive Statistics Education Add‑In blog.
4. Addressing Toronto’s Budget Deficit Through Smarter Procurement
Toronto’s procurement process often involves paying U.S.‑dollar rates to firms not based in the city. This exposes taxpayers to unnecessary currency risk.
- The city should avoid contracts that shift foreign exchange risk onto residents.
- When Toronto invests public money in private projects, taxpayers should receive non‑voting equity, ensuring they benefit if companies grow—or have protection if companies leave.
The city can also create jobs and revenue through new initiatives, such as a city‑wide wildlife‑control fencing program. Stiffer residential fines for improper waste storage, collection and disposal would help reduce wildlife complaints in warmer months.
I explore this proposal in depth on We Protect T.O.R.O.N.T.O., including cost modelling and implementation pathways.
Toronto’s challenges are not new, but the solutions can be. As the 2026 budget takes shape, the city has an opportunity to rethink long‑standing assumptions and adopt policies that better reflect how residents live, work, and move today.
