big issues:cost of living

Every year, the Mayor proposes a staff-prepared budget to City Council for debate and possible amendment. The budget sets the residential property tax rate, the largest cost directly determined by City Council. Property owners pay this tax, including landlords. Property taxes may affect rental costs, although rent increases are governed by provincial rules.

A tax bill is the City's rate applied to a home's assessed value. That value is set by a provincial agency, the Municipal Property Assessment Corporation (MPAC), not by the City.

City Council sets separate utility fees for water services and garbage pickup. How much you personally pay depends on how much water you use or which size garbage bin you choose. Utility costs can influence overall housing costs for renters, depending on lease arrangements and provincial rental rules.

City Council also sets user fees for permits and recreation services. Examples include a marriage licence, a building permit, or an indoor City pool swim pass. Low-income seniors and people with disabilities can apply to cancel or defer a property tax increase. They can also receive utility rebates.

For many residents, a transit fare is a daily cost shaped by City decisions. The Toronto Transit Commission (TTC) Board sets fare levels on its own legal authority. City Council does not need to approve fares directly. City Council can shape fare rates indirectly by approving the TTC's annual operating budget and subsidy, which influences what fares the TTC Board sets.

This TTC Board and City Council role covers only the TTC. It does not cover GO Transit or UP Express. Metrolinx, a provincial agency, runs both of those.

Under a 2026 provincial law, Ontario's Minister of Transportation can set fare prices, discounts and transfer rules for transit systems the Minister names, and require them to join a single fare payment system. This could include the TTC. As of 2026, the Province has not named the TTC (Go to information source).

In 2026, fares cover about a third of what the TTC costs to run. City property taxes cover about half. Federal and provincial funding covers less than a tenth (Go to information source - PDF).

There is more information about the TTC and how the City of Toronto can affect your commute in the Getting Around primer.

City Council funds several programs intended to reduce specific costs for eligible lower-income residents. The Welcome Policy gives low-income residents a credit toward City recreation, such as swim lessons and camps. City child-care fee subsidies help families pay for licensed child care. City Council also helps administer the "$10-a-day" child-care system, which is mostly funded by other governments.

Other programs include property tax and water relief for low-income residents. The Rent Bank provides financial assistance to eligible renters who are behind on rent or require help securing housing. The Student Nutrition Program provides free meals and snacks at school. City Council approves funding levels for these programs through the annual budget process.