Ontario has announced the rent increase guideline for 2026: 2.1%. This is the lowest cap in four years, down from 2.5% in 2025.
If you're renting in Ontario, this guide explains what the new guideline means for your rent, whether your unit is covered, and what to do if your landlord raises rent above the legal limit.
Quick Answer: The maximum rent increase for most Ontario tenants in 2026 is 2.1%. This applies to units first occupied on or before November 15, 2018. Landlords must give 90 days' written notice using Form N1. If your unit was first occupied after November 2018, there is no cap - your landlord can raise rent by any amount with proper notice.
The rent increase guideline is the maximum percentage landlords can raise rent each year without approval from the Landlord and Tenant Board (LTB). For 2026, that cap is 2.1%.
This means if your current rent is $2,000/month, your landlord can increase it by a maximum of $42, bringing your new rent to $2,042.
The guideline is calculated using Ontario's Consumer Price Index (CPI) - a measure of inflation based on the average cost of goods and services. The 2026 rate reflects CPI data from June 2023 to May 2024.
The rent increase guideline is capped at 2.5% by law under the Residential Tenancies Act. Even if inflation exceeds 2.5%, landlords cannot charge more than the cap without applying for an Above Guideline Increase through the LTB.
The 2.1% guideline is the lowest since 2021, when Ontario froze rent increases at 0% during COVID-19. Here's how recent years compare:
For three consecutive years (2023-2025), the guideline hit the maximum 2.5% cap due to high inflation. The drop to 2.1% in 2026 reflects cooling inflation, providing some relief for Ontario renters.
For a detailed breakdown of the 2025 rules, see our Ontario Rent Increase 2025 guide.
The 2.1% cap applies to most - but not all - rental units in Ontario. Here's how to determine if you're protected.
The rent increase guideline applies to most private residential rentals that were first occupied on or before November 15, 2018, including:
If your unit meets these criteria, your landlord cannot increase rent by more than 2.1% in 2026.
Some units are not covered by the rent increase guideline. Landlords of these properties can raise rent by any amount with proper notice:
If you moved into a newly built condo or purpose-built rental after November 2018, your unit is likely exempt. This is commonly called "vacancy decontrol" or the "post-2018 exemption."
Not sure if your apartment is covered? Here's how to find out:
Landlords must prove the exemption if challenged. If they can't provide evidence the building was first occupied after November 15, 2018, the guideline likely applies.
Even when raising rent within the guideline, landlords must follow strict legal requirements. An increase that doesn't meet these rules may be invalid.
Landlords must provide at least 90 days' notice before a rent increase takes effect. This notice must be delivered using the official Form N1 (Notice of Rent Increase), available from the Landlord and Tenant Board.
For example, if your landlord wants to increase rent on April 1, 2026, you must receive Form N1 by January 1, 2026 at the latest.
Rent can only increase once every 12 months. This means:
The 12-month clock starts from either your move-in date or your last rent increase - whichever is more recent.
A rent increase notice must be delivered on Form N1. Verbal notices, text messages, emails, or informal letters are not valid. If your landlord doesn't use the correct form, the increase may not be enforceable.
If you're in the process of applying for a new rental, our Ontario Rental Application Form 410 guide explains what landlords can and cannot ask during the application process.
If you receive a rent increase notice that exceeds the guideline, you have options.
Landlords can apply to the LTB for an Above Guideline Increase in specific circumstances:
Even with LTB approval, AGIs are typically capped at 3% above the guideline - meaning a maximum of 5.1% total for 2026. AGIs are often spread over multiple years to reduce the impact on tenants.
If your landlord claims an AGI, you should receive notice of the LTB application. You have the right to attend the hearing and dispute the increase.
If you believe a rent increase is illegal—whether it exceeds the guideline without approval, lacks proper notice, or comes too soon after the last increase - you can:
You have 12 months from the date of the increase to file a complaint with the LTB.
If you live in a building first occupied after November 15, 2018, the 2.1% cap doesn't apply. Your landlord can raise rent by any amount.
However, landlords of exempt units must still:
If you're renting an exempt unit, negotiating a longer lease term can provide more rent stability. Some tenants ask for multi-year leases with predetermined annual increases written into the agreement.
If your lease is coming up for renewal, review these points:
Even a 2.1% increase affects your monthly budget. For a $2,000 rent, that's $504 more per year. Factor this into your financial planning for 2026.
Save all correspondence with your landlord, including:
These records are essential if you need to dispute an increase later.
Here's something most renters don't realize: paying rent on time every month doesn't automatically build your credit score in Canada. Unlike mortgage payments, rent isn't reported to credit bureaus unless you take action.
This matters because credit scores affect everything from future rental applications to car loans and mortgages. If you're paying $2,000+ per month in rent, that payment history could be working harder for you.
With rent reporting, your on-time payments get reported to Equifax and TransUnion, helping you build credit with money you're already spending. You can even use our rent cashback calculator to see how much you could earn back on your payments.
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