Ontario's 2026 Rent Increase Guideline Is 2.1%: How Much Landlords Can Raise Rent

Per the Government of Ontario (Ontario.ca), the guideline is based on the Ontario Consumer Price Index (CPI) — a measure of inflation — and is capped at a maximum of 2.5%. The 2026 figure of 2.1% reflects CPI data from June 2024 to May 2025, and the province publishes it once a year.

For context: 2025 was 2.5%, 2024 was 2.5%, and 2026 drops to 2.1% — cooling inflation showing up directly in the number.

Which units the 2.1% covers

The guideline binds most rental units first occupied on or before November 15, 2018. For these units a landlord cannot raise rent by more than 2.1% in a year, unless they apply to the LTB for an above-guideline increase (for example, after major capital repairs).

This is the rule tenants miss most. Units first occupied after November 15, 2018 — including newer condos and newly created basement units — are not covered by the guideline, so a landlord can legally raise rent by more than 2.1%. Before signing a lease in a newer unit, confirm whether it falls under this exemption and check the rent-increase terms.

The right way for a landlord to raise rent

• The 12-month rule: for the same tenant, at least 12 months must pass between increases (or since move-in for the first increase).
• 90 days’ written notice: use the LTB’s Form N1, served in writing at least 90 days before the increase, stating the new rent and effective date.
• No more than the guideline: a covered unit can’t exceed that year’s guideline (2.1% for 2026) without LTB approval for an above-guideline increase.

Skip a step — verbal notice, under 12 months, a defective form — and the increase may be invalid.

• “A new tenant means I can charge anything.” For a covered unit, you can set the starting rent freely when re-renting to a new tenant after a vacancy (vacancy decontrol), but during a tenancy the same tenant is still capped at 2.1%.
• “The guideline is the amount I must raise.” No — 2.1% is a ceiling, not an obligation. A landlord can raise less, or not at all.
• “Notice doesn’t have to be in writing.” Wrong. It must be Form N1, 90 days ahead, after 12 months — miss any one and the increase can fail.

Q: What is the maximum rent increase in Ontario for 2026?

For rent-controlled units (first occupied on or before November 15, 2018), the 2026 cap is 2.1%, unless the landlord has obtained LTB approval for an above-guideline increase for things like major repairs. Source: Ontario.ca.

Q: I live in a new condo — can my landlord raise rent above 2.1%?

Possibly. Units first occupied after November 15, 2018 are not covered by the guideline, so the landlord can legally raise rent by more than 2.1%. Confirm whether your unit is exempt before signing and review the lease’s rent-increase terms.

Q: How much notice must a landlord give to raise rent?

At least 90 days, in writing, using the LTB’s Form N1, and at least 12 months since the last increase or move-in. Verbal notice or an increase sooner than 12 months can be invalid.

Q: Is 2.1% lower than previous years?

Yes. 2.1% is the lowest in four years, down from 2.5% in both 2025 and 2024. The guideline is based on the Ontario CPI, and cooling inflation lowered the 2026 cap.