Does the 2.1% 2026 guideline apply to new buildings?

No. Units first occupied for residential purposes after November 15, 2018 are exempt from the percentage cap. The 90-day N1 notice and the once-per-12-months rule still apply, but the landlord can set the increase amount.

Ontario rent increase

Ontario rent increase 2026: how to raise rent the right way

Q: What is the Ontario rent increase for 2026?

The 2026 rent increase guideline is 2.1%, down from 2.5% in 2025. For rent-controlled units, this is the maximum a landlord can raise rent in a 12-month period without an order from the Landlord and Tenant Board.

Q: When can I raise the rent in Ontario in 2026?

At least 12 months after the start of the tenancy and at least 12 months after the previous increase. The tenant must have at least 90 days of written notice on Form N1 before the new rent takes effect.

Q: What is the Ontario rent increase guideline for 2027?

The 2027 guideline is set by the Minister of Municipal Affairs and Housing each year, typically announced in mid-2026. Until it is published, plan your N1 timing around the 2026 rate.

Q: What form do I use to raise rent in Ontario?

Form N1 (Notice of Rent Increase). It must be served at least 90 days before the new rent date. A second form, N2, is used for exempt units that follow a different rule structure.

The 2026 Ontario rent increase guideline is 2.1%, down from 2.5% in 2025. This is the landlord-side, step-by-step version: when you can raise, the N1 timing, the math, the new-build exemption, and the mistakes that void the increase for a full year.

Skip the math

Ontario Rent Increase Calculator 2026

Enter the current rent, mark the unit as rent-controlled or exempt, and get the new rent plus the last month's rent deposit interest you owe. Free, no account.

Use the calculator

The 2026 number, and who it applies to

2026 guideline

2.1%

Down from 2.5% in 2025

Notice period

90 days

Full calendar days on Form N1

Frequency

Once / 12 mo.

Per tenant, per unit

The 2.1%guideline applies to rent-controlled units: any residential rental first occupied for residential purposes on or before November 15, 2018. Most existing housing stock in Ontario falls under that line. Units first occupied after November 15, 2018 are exempt from the percentage cap (more on what “exempt” really means below).

Four-step process for a 2026 increase

Confirm you're past the 12-month window

You can only raise rent once every 12 months for the same tenant, and only after they have been in the unit for at least 12 months. Pull the lease and the last N1 to confirm the date.

Calculate the new rent

For rent-controlled units in 2026, multiply the current rent by 2.1%. The calculator below also handles last month's rent deposit interest, which most landlords forget to top up.

Serve the N1 at least 90 days early

Count 90 full days backward from the day the new rent takes effect. Use one of the delivery methods set out in the Rules of Practice (handing it to the tenant, leaving it in their mailbox, regular mail with mailing buffer, etc.).

Diarize the next increase window

The moment this N1 is served, set a reminder for 12 months later. Missing the anniversary by even one day means a full year of lost increase.

What “exempt from the guideline” actually means

Exempt does not mean “you can do whatever you want”. It means the 2.1% cap does not apply — the landlord can set the increase amount. The other rules are unchanged:

You still need to serve Form N1 (or N2 for exempt-specific increases) at least 90 days before the new rent date.
You can still only raise rent once every 12 months for the same tenant.
The tenant must have been in the unit at least 12 months before the first increase.
An unreasonable increase can still trigger a constructive eviction or LTB complaint — keep increases tied to the market.

Common exempt-unit cases

—Units first occupied for residential purposes after November 15, 2018 — purpose-built rentals, new condos, and new basement apartments first rented after that date.
—Affordable, social, and supportive housing under their own rent-setting rules.
—Commercial tenancies and care-home units that fall under separate carve-outs in the Residential Tenancies Act.

Five mistakes that void a 2026 increase

Assuming the 2025 rate still applies

The 2025 guideline was 2.5%; the 2026 guideline is 2.1%. A common N1 error is reusing last year's percentage on a new notice and overcharging the tenant by 0.4%.

Treating a post-2018 unit as rent-controlled

Units first occupied after November 15, 2018 are exempt from the percentage cap. You can charge a higher increase, but you still need a proper N1 and the once-per-12-months rule still applies.

Counting business days instead of full days

The 90-day notice is 90 full calendar days, not business days. Mailing a form 88 days before the increase date will void the notice.

Backdating an increase to the lease anniversary

An N1 cannot retroactively reset the rent. If you missed the 90-day window, the next eligible increase date moves forward — there is no make-up.

Forgetting the last month's rent deposit top-up

When rent rises, the LMR deposit must rise too — usually applied from the annual interest you owe. If you have not paid interest, you owe both the top-up and the back-interest.

Need more than 2.1%?

The Landlord and Tenant Board can approve an above-guideline increase (AGI) if you can show eligible capital expenditures, extraordinary increases in operating costs, or a security-services cost increase. AGIs are a separate application with its own evidence threshold.

Above-guideline increase guide

What about 2027?

The Minister of Municipal Affairs and Housing publishes each year's guideline by regulation, historically in mid-summer of the preceding year. Until the 2027 guideline is published, plan N1 timing around the 2.1% 2026 rate. We update this page within 48 hours of any official announcement.

FAQ

What is the Ontario rent increase for 2026?

The 2026 guideline is 2.1%, down from 2.5% in 2025. For rent-controlled units this is the maximum 12-month increase without an LTB order.

When can I raise the rent in Ontario in 2026?

At least 12 months after the start of the tenancy and 12 months after the previous increase. The tenant must have at least 90 days of written notice on Form N1 before the new rent date.

Does the 2.1% guideline apply to new buildings?

No. Units first occupied after November 15, 2018 are exempt from the percentage cap. The 90-day notice and once-per-12-months rules still apply.

What is the Ontario rent increase guideline for 2027?

The 2027 guideline is set by the Minister each year and typically announced in mid-2026. Until then, plan N1 timing around the 2.1% 2026 rate.

What form do I use to raise rent in Ontario?

Form N1 for rent-controlled units. Form N2 is used for some exempt units that follow a different rule structure. Both must be served at least 90 days before the new rent takes effect.

Related guides

Ontario Rent Increase Guideline

The foundational guide — how the guideline is set, exempt units in detail, and the serving calendar.

Above-Guideline Rent Increase (AGI)

When and how to apply to the LTB for more than the guideline.

Last Month's Rent Deposit

Collecting the deposit, paying annual interest, and topping it up when rent rises.

Free tool

Run the numbers in 10 seconds

The Ontario rent increase calculator applies the 2.1% 2026 guideline, handles exempt units, and computes the LMR deposit interest in one shot. No account, no payment, no upload.

Open the calculator

Statutory references

Sections of Ontario law this guide is grounded in. Read the source text before acting on a specific situation.

RTA s.120— Annual rent increase guideline set by the Minister (2.1% for 2026)
RTA s.116— Notice of rent increase (Form N1) — at least 90 days before the new rent date
RTA s.119— Rent can only be increased once every 12 months for the same tenant
RTA s.126— Above-guideline rent increase application to the LTB

About this guide

Written and maintained by the ScreenTenants.ca editorial team and reviewed against Ontario's Residential Tenancies Act, 2006 and the Landlord and Tenant Board's published rules. Last reviewed June 2026.

This is general information for Ontario landlords, not legal advice. Rules change and individual situations vary — confirm details with the LTB or a licensed paralegal or lawyer before acting on a specific matter.

See our editorial policy for sources, review cadence, and corrections.