The Guideline in Four Numbers
The guideline is the most a landlord can raise a sitting tenant’s rent in a year without the Board’s approval. It applies to most private rental units, but not to new units first occupied after November 15, 2018, not to the rent agreed with a new tenant at turnover, and not to community housing.1
Every Guideline Since 2007
Most of the Residential Tenancies Act, 2006 came into force on January 31, 2007, so 2007 is the first guideline year under it.4 The government’s table goes back to 1991.1
| Period | Guideline |
|---|---|
| 2007 | 2.6% |
| 2008 | 1.4% |
| 2009 | 1.8% |
| 2010 | 2.1% |
| 2011 | 0.7% |
| 2012 | 3.1% |
| 2013 | 2.5% |
| 2014 | 0.8% |
| 2015 | 1.6% |
| 2016 | 2% |
| 2017 | 1.5% |
| 2018 | 1.8% |
| 2019 | 1.8% |
| 2020 | 2.2% |
| 2021 | 0% |
| 2022 | 1.2% |
| 2023 | 2.5% |
| 2024 | 2.5% |
| 2025 | 2.5% |
| 2026 | 2.1% |
| 2027 | 1.9% |
Compounded, the 21 guidelines from 2007 to 2027 add up to about 46.5%: a $1,000 rent in 2006 raised by the full guideline every year would be about $1,465 in 2027. That is a calculation from the published table, not a figure the government publishes.1
The 2021 Freeze
The guideline for 2021 is zero by statute, despite the formula and despite the figure already published for that year.2 The government table footnotes the same year as a rent freeze at 2020 levels for most units.1
How the Guideline Is Calculated
The Minister sets it from Statistics Canada’s Consumer Price Index for Ontario. The guideline for a calendar year is the year-over-year percentage change in that index, averaged over the 12 months ending in May of the previous year, rounded to one decimal, and capped at 2.5%.2 It must be published in The Ontario Gazette by August 31 of the year before.2
The cap came in with a 2012 amendment in force on June 19, 2012.2 Before it, the guideline could exceed 2.5%, and it did: 2.6% in 2007 and 3.1% in 2012.1 Since then it has been exactly 2.5% in 2013, 2023, 2024 and 2025.1
How the Guideline Compares With Inflation
Over the long run the guideline has trailed Ontario inflation, and the gap opened mostly after 2021. Ontario’s annual average CPI rose 3.5% in 2021, 6.8% in 2022 and 3.8% in 2023, calculated from Statistics Canada’s annual index.5
| Period | Ontario CPI |
|---|---|
| 2007 | 1.8% |
| 2008 | 2.3% |
| 2009 | 0.4% |
| 2010 | 2.5% |
| 2011 | 3.1% |
| 2012 | 1.4% |
| 2013 | 1% |
| 2014 | 2.4% |
| 2015 | 1.2% |
| 2016 | 1.8% |
| 2017 | 1.7% |
| 2018 | 2.4% |
| 2019 | 1.9% |
| 2020 | 0.7% |
| 2021 | 3.5% |
| 2022 | 6.8% |
| 2023 | 3.8% |
| 2024 | 2.4% |
| 2025 | 1.9% |
| Period | Guideline, compounded | Ontario CPI change |
|---|---|---|
| 2007 to 2025 | +40.8%1 | +52.2% (2006 to 2025 average)5 |
| 2018 to 2025 | +15.4%1 | +25.5% (2017 to 2025 average)5 |
| 2022 to 2025 | +9.0%1 | +15.6% (2021 to 2025 average)5 |
The comparison is rough by design. The guideline for a year reflects inflation from June two years earlier to May of the previous year, so it lags the calendar-year CPI by about a year and a half.2 The cap is the main reason for the recent gap: when inflation spiked, the guideline could not go above 2.5%.2,1
Which Units the Guideline Doesn’t Cover
Section 6.1 of the Act exempts from the guideline and the above-guideline rules, on and after December 6, 2018:3
- Units in a building, mobile home park or land lease community no part of which was occupied for residential purposes on or before November 15, 2018.3
- Units entirely in an addition no part of which was occupied for residential purposes on or before that date.3
- Certain second units created after November 15, 2018 in a detached, semi-detached or row house that had no more than two units on or before that date, with their own kitchen, bathroom and lockable entrance.3
The exemption does not apply to a unit under a tenancy agreement entered into on or before November 15, 2018.3 An older exemption in subsection 6(2) was repealed in 2017, and section 120.1 brings those previously exempt units under the guideline.2
What This Means for Screening
For most units, the rent agreed at signing is the base every later increase is measured from, and future increases are capped at a figure that has trailed inflation over the long run. That makes the starting rent and the tenant’s ability to keep paying it the main things a landlord can price at the outset.1
- Confirm whether the unit is exempt before you market it. A unit first occupied after November 15, 2018 can see larger increases on renewal, which a tenant should know before signing.3
- Judge affordability the way the Human Rights Code allows, by whether income covers the rent, not by a ratio; see rent-to-income ratios in Ontario.
- The guideline also sets the annual interest on the last month’s rent deposit; see the Ontario rent deposit rules.
- Most Board filings are for non-payment of rent, so evidence that an applicant pays rent reliably carries the most weight; see LTB caseload data.
Questions
What Is the Ontario Rent Increase Guideline for 2026?
It is 2.1% for 2026 and 1.9% for 2027. It applies to most rental units covered by the Residential Tenancies Act, 2006, but not to units first occupied after November 15, 2018.1
Can the Guideline Be More Than 2.5%?
No. Since a 2012 amendment, the Act caps the guideline at 2.5% for any calendar year. A landlord can still apply to the Board for an above-guideline increase.2,1
Does the Guideline Apply to a New Tenant?
No. On turnover the landlord and the new tenant agree on the rent. The guideline then limits increases during that tenancy.1
Sources
- Rent increase guideline
Government of Ontario, Rules for rent increase; Rent increase guideline; Previous rent increase guidelines table, 1991 to 2027. Accessed October 28, 2026.
- Residential Tenancies Act, 2006, S.O. 2006, c. 17
Government of Ontario, e-Laws, ss. 120(2), (3), (3.1) and 120.1, with amendment history (2012, c. 6, s. 1 in force June 19, 2012), consolidated to September 21, 2026. Accessed October 22, 2026.
- Residential Tenancies Act, 2006, S.O. 2006, c. 17
Government of Ontario, e-Laws, s. 6.1(1) to (4), with amendment history (2018, c. 17, Sched. 36, s. 1 in force December 6, 2018). Accessed October 22, 2026.
- The Ontario Gazette, Volume 139, Issue 43, October 28, 2006
Government of Ontario, Proclamation, Residential Tenancies Act, 2006. Accessed October 22, 2026.
- Table 18-10-0005-01, Consumer Price Index, annual average, not seasonally adjusted
Statistics Canada, Ontario, All-items (2002=100), vector v41694217, 2006 to 2025. Accessed October 28, 2026.
