Ontario rent rules
Ontario's rent increase guideline for 2026 and 2027
By Steve Stavros Liadakis, Ontario landlord for 30+ years · Updated August 10, 2026
The guideline for 2026 is 2.1%, and the province has announced 1.9% for 2027 (for increases taking effect on or after January 1, 2027). Here's what the guideline is, who it applies to, and how to use it correctly.
The short version
Ontario's rent increase guideline is 2.1% for 2026 and 1.9% for 2027. The most you can raise the rent on a rent-controlled unit without applying to the Landlord and Tenant Board. Units in buildings first occupied for residential use on or after November 15, 2018 are generally exempt from the cap. To raise the rent, serve Form N1 at least 90 days before the increase takes effect, and at least 12 months after the last increase or the start of the tenancy. The guideline is based on the Ontario Consumer Price Index and is capped by law at 2.5%.
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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
| Year | Guideline |
|---|---|
| 2027 | 1.9% |
| 2026 | 2.1% |
| 2025 | 2.5% |
| 2024 | 2.5% |
| 2023 | 2.5% |
| 2022 | 1.2% |
| 2021 | 0% (rent freeze) |
| 2020 | 2.2% |
| 2019 | 1.8% |
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.
Frequently asked questions
How much can I raise the rent in Ontario in 2026?
Ontario's rent increase guideline for 2026 is 2.1%. The most a landlord can raise the rent for a rent-controlled unit without applying to the Landlord and Tenant Board. On a unit renting for $2,000 a month, a 2.1% increase adds $42, for a new rent of $2,042.
What is Ontario's rent increase guideline for 2027?
Ontario has announced a guideline of 1.9% for 2027, which applies to increases taking effect on or after January 1, 2027. On a $2,000 monthly rent, a 1.9% increase adds $38, for a new rent of $2,038.
Which rental units are exempt from Ontario's rent increase guideline?
Units in buildings first occupied for residential use on or after November 15, 2018 are generally exempt from Ontario's cap, so their rent can be raised by any amount. The other rules still apply in full: once every 12 months, 90 days written notice, and the proper form.
How much notice does a landlord have to give for a rent increase in Ontario?
In Ontario you must serve Form N1, Notice of Rent Increase, at least 90 days before the increase takes effect, and at least 12 months must have passed since the last increase or the start of the tenancy.
Is there a maximum Ontario's rent increase guideline can reach?
Yes. The guideline is based on the Ontario Consumer Price Index and is capped by law at 2.5%, no matter how high inflation runs.
Never miss a window with Keystead
Keystead tracks each unit's last increase, enforces the 90-day and 12-month rules, generates the N1, and bills the new amount automatically from its effective date.
Start a free trialThis guide is general information, not legal advice, and rules change. Confirm the current requirements with the Landlord and Tenant Board or a licensed paralegal before you act.
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