Ontario Rent Increase Rules 2026: The 2.1% Guideline, the N1 Notice, and Above-Guideline Increases
A landlord cannot raise rent by whatever they like. Understand the rules first, then talk numbers.
How much can rent go up in Ontario in 2026?
For most units covered by the Residential Tenancies Act (RTA, 2006), Ontario’s 2026 rent increase guideline is 2.1%, and the guideline is capped at 2.5% by law. A landlord must use the N1 form, give at least 90 days’ written notice, and leave at least 12 months between increases (or since move-in). Note: units first occupied on or after November 15, 2018 are exempt from the percentage guideline — but the procedural rules below still apply.
Source: Government of Ontario, ontario.ca (2026 rent increase guideline)
Whether you are a landlord or a tenant, rent increases are where mistakes and disputes happen most. I have seen increases overturned because a landlord used the wrong form or did not give enough notice — and I have seen tenants overpay because they did not know the rules. This guide lays out Ontario’s 2026 rent increase rules in one place: how much, how to notify, when it is allowed, and the exceptions.
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The guideline: 2.1% for 2026, capped at 2.5%
The exception: units first occupied after Nov 15, 2018
⚠️Exempt from the guideline is a common source of confusion. Even if a unit is not bound by the 2.1% cap, the landlord must still use the N1, give 90 days’ notice, and leave 12 months between increases. A tenant who receives a non-compliant notice can seek help from the LTB.
The legal process: N1 form + 90 days + 12 months
Above-guideline increases (AGI): the L5 application
Frequently Asked Questions
Can a landlord raise the rent whenever they want?
No. At least 12 months must pass between increases (or since move-in), with 90 days’ written notice via the N1. During a fixed term (such as a one-year lease), the rent generally cannot change mid-term.
My increase notice did not use the N1 form — is it valid?
Likely not. Ontario requires the official N1 form plus the 90-day and 12-month conditions. If a notice is not compliant, you can point that out in writing or consult the Landlord and Tenant Board (LTB).
Do tenants in newer buildings (post-Nov 2018) have no protection?
Not true. Those units are only exempt from the 2.1% percentage cap — the N1 notice, 90-day, and 12-month rules still apply, as do other RTA protections such as the ban on retaliatory evictions.
My landlord says a major renovation justifies more than 2.1% — is that legal?
Only if they have filed an L5 (above-guideline) application with the LTB and it has been approved. A landlord cannot decide an above-guideline increase alone. If you get such a request, confirm there is an LTB approval behind it.
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