What is the maximum rent increase cap in Ontario?

The Residential Tenancies Act caps the annual guideline at 2.5%, no matter how high inflation runs. The actual guideline each year is based on Ontario CPI and can be lower, such as 1.9% for 2027.

If I give notice in 2026 for an increase in 2027, which guideline do I use?

Use the guideline for the year the increase takes effect. A notice served in 2026 for an increase effective in 2027 uses the 2027 guideline of 1.9%.

Does the guideline apply to a unit in a building first occupied in 2020?

Generally no. Units in buildings or additions first occupied for residential purposes after November 15, 2018, and most new basement apartments, are exempt. The landlord still has to give 90 days' written notice and wait 12 months between increases.

How much notice do I need to give for a rent increase in Ontario?

At least 90 days' written notice on the LTB-approved form, usually the N1, and at least 12 months must have passed since the last increase or the start of the tenancy.

Ontario Rent Increase Guideline for 2026 and 2027

Checked against official Ontario sources on October 14, 2026. General information, not legal advice.

Ontario's rent increase guideline is 2.1% for 2026 and 1.9% for 2027, per the Government of Ontario. The guideline is the most a landlord can raise most tenants' rent in a year without approval from the Landlord and Tenant Board, and the year that counts is the year the increase takes effect. By law the guideline is based on Ontario inflation and can never be more than 2.5%.

What is the Ontario rent increase guideline for 2026 and 2027?

The guideline is 2.1% for 2026 and 1.9% for 2027. Both figures are published on the Government of Ontario's Residential rent increases page.

The province describes the guideline as the maximum a landlord can increase most tenants' rent during a year without the approval of the Landlord and Tenant Board (LTB). It covers most rent-controlled tenancies, including many houses, condos and basement apartments, as long as the unit is not exempt (see below).

Has the 2027 guideline been announced?

Yes. The 2027 guideline of 1.9% is already published on ontario.ca. The Residential Tenancies Act, 2006 requires the Minister to have each year's guideline published in The Ontario Gazette no later than August 31 of the preceding year, so the 2027 number was due by August 31, 2026.

The LTB's Guide to the Residential Tenancies Act says the same thing in plain terms: the government announces the guideline by August 31 for increases that take effect on or after January 1 of the following year.

Which year's guideline applies to my rent increase?

The guideline that applies depends on the date the increase takes effect, not the date you give notice. The LTB ties each guideline to increases taking effect on or after January 1 of the year it covers, and ontario.ca's own example uses the 2027 guideline for an increase taking effect on June 1, 2027.

In practice, if you serve notice in October 2026 for an increase that takes effect in January 2027 or later, the 2027 guideline of 1.9% is the one that applies.

Ontario rent increase guideline by year

These are the guidelines listed on the Government of Ontario's Residential rent increases page:

2027: 1.9%
2026: 2.1%
2025: 2.5%
2024: 2.5%
2023: 2.5%
2022: 1.2%
2021: 0% (rent freeze; ontario.ca notes it would otherwise have been 1.5%)
2020: 2.2%
2019: 1.8%
2018: 1.8%
2017: 1.5%
2016: 2.0%

2023 to 2025 were set at the 2.5% legal maximum. The 2021 freeze was written directly into the Residential Tenancies Act.

How is the guideline calculated?

Section 120 of the Residential Tenancies Act, 2006 sets the formula. The guideline is the year-over-year percentage change in the Consumer Price Index for Ontario, as reported monthly by Statistics Canada, averaged over the 12-month period ending at the end of May of the previous year and rounded to one decimal place.

The Act also says the guideline for any year can be no more than 2.5%. So even in a year of high inflation, the guideline stops at 2.5%.

How much can a landlord raise rent in Ontario? A worked example

Multiply the current monthly rent by the guideline for the year the increase takes effect.

Increase taking effect in 2026: $2,000 x 2.1% = $42.00, so the new rent is at most $2,042.00 per month.
Increase taking effect in 2027: $2,000 x 1.9% = $38.00, so the new rent is at most $2,038.00 per month.

Ontario.ca gives its own example: a $1,000 rent set on June 1, 2026 could rise by 1.9% on June 1, 2027, to $1,019.00, with at least 90 days' written notice.

What timing and notice rules apply?

12-month rule: rent can generally be raised only if at least 12 months have passed since the last increase or since the tenancy began.
90 days' notice: the landlord must give written notice at least 90 days before the increase takes effect, on the form approved by the LTB.
No notice, no increase: under the Act, an increase is void if proper notice was not given, and a new notice is needed.

For most landlords the form is the N1. Our n1 guide walks through filling it out and serving it.

Which units are exempt from the guideline?

According to ontario.ca, the guideline does not apply to:

New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018
Rent set at the start of a new tenancy, when a new tenant moves in at a rent agreed with the landlord
Community housing units, long-term care homes and commercial properties

For exempt post-2018 units, the LTB says the landlord must still give 90 days' written notice, but there is no limit on how much the rent can go up. The exact exemption rules are in section 6.1 of the Act, including specific conditions for new units in houses, so check them carefully if your unit is a recent conversion.

Can a landlord ever go above the guideline?

Only in specific cases set out in the Act, such as an LTB order on an application for a rent increase above the guideline, or certain agreements with the tenant. This is general information, not legal advice; for anything beyond a standard guideline increase, review the LTB's materials or get professional advice.

How Propmo helps

Propmo tracks each tenancy against the Ontario rent increase guideline for the effective year and the 90-day N1 notice window, and prepares the Form N1 details and a tenant notice email for the landlord to copy and review. Price: $35 CAD per unit per month.

Try Propmo

Frequently asked questions

What is the Ontario rent increase guideline for 2027?: It is 1.9%, as published by the Government of Ontario. It applies to increases that take effect in 2027.
What is the Ontario rent increase guideline for 2026?: It is 2.1%, for increases that take effect in 2026.
What is the maximum rent increase cap in Ontario?: The Residential Tenancies Act caps the annual guideline at 2.5%, no matter how high inflation runs. The actual guideline each year is based on Ontario CPI and can be lower, such as 1.9% for 2027.
If I give notice in 2026 for an increase in 2027, which guideline do I use?: Use the guideline for the year the increase takes effect. A notice served in 2026 for an increase effective in 2027 uses the 2027 guideline of 1.9%.
Does the guideline apply to a unit in a building first occupied in 2020?: Generally no. Units in buildings or additions first occupied for residential purposes after November 15, 2018, and most new basement apartments, are exempt. The landlord still has to give 90 days' written notice and wait 12 months between increases.
How much notice do I need to give for a rent increase in Ontario?: At least 90 days' written notice on the LTB-approved form, usually the N1, and at least 12 months must have passed since the last increase or the start of the tenancy.