Ontario's rent increase guideline for 2026 and 2027

What the guideline is

Each year Ontario publishes a rent increase guideline: the most a landlord can raise the rent for a rent-controlled unit without applying to the Landlord and Tenant Board. It applies to the calendar year the increase takes effect in, so an increase effective December 1, 2026 uses the 2026 figure, and one effective January 1, 2027 uses the 2027 figure.

Recent guidelines at a glance

The guideline is based on the Ontario Consumer Price Index and is capped by law at 2.5%, no matter how high inflation runs.

What it looks like in dollars

On a unit renting for $2,000 a month:

• A 2026 increase at 2.1% adds up to $42, for a new rent of $2,042.
• A 2027 increase at 1.9% adds up to $38, for a new rent of $2,038.

Units the guideline doesn't cap

Units in buildings first occupied for residential use on or after November 15, 2018 are generally exempt from the cap. You can raise their rent by any amount, but the other rules still apply in full: once every 12 months, 90 days written notice, and the proper form.

How to actually raise the rent

• Serve Form N1, Notice of Rent Increase, at least 90 days before the increase takes effect.
• At least 12 months must have passed since the last increase or the start of the tenancy.
• Planning a January 1, 2027 increase at the new 1.9%? The N1 must be in the tenant's hands by early October 2026.

The mechanics, exemptions, and above-guideline applications are covered in our full N1 rent increase guide.