The City of Ottawa’s 2026 budget boosts taxes and transit fares to strengthen infrastructure, policing, and affordable housing projects.
Revenue Plan Aims for Stability
In the heart of the capital, the City of Ottawa, ON unveiled its draft 2026 municipal budget this Wednesday, setting a 3.75 per cent overall tax increase for property owners. Mayor Mark Sutcliffe described the plan as “fiscally responsible”, crafted to protect affordability while continuing crucial investments in city services.
Transit Levies See Dual Increase
To address persistent revenue shortfalls at OC Transpo, the budget imposes a 2.5 per cent transit fare hike and an 8 per cent property tax levy dedicated to transit funding. These increases together exceed the standard 2.9 per cent property-tax rise feeding general services, and contribute to the overall 3.75 per cent average tax bump—translating to roughly $166 more per average household, or under $14 monthly.
Public Safety Gets a Boost
Public safety is a clear priority, with the mayor unveiling a five per cent increase in the police levy—the largest service-specific boost in the plan. The overall police budget will climb by $26.1 million to $414.9 million, enabling the hiring of 25 additional officers, according to city estimates.
Infrastructure and Housing in Focus
Beside policing and transit, the draft budget allocates funds to priority areas including affordable housing (about $23 million toward 350 homes), youth homelessness ($400,000), paramedics, $135 million for road resurfacing and $25.4 million for sidewalk rehabilitation. These investments signal the city’s dual intent to maintain infrastructure and support vulnerable populations ahead of the 2026 municipal election.
Timeline and Next Steps
Following the unveiling, the budget plan will proceed to city committees for public consultations and review. A final vote at city council is planned next month. Spearheading the timeline, Mayor Sutcliffe emphasized the need for transparency and citizen engagement, inviting residents to weigh in on the proposed allocations.
Context and Why It Matters
Facing federal job-cut anxiety and post-pandemic ridership challenges, Ottawa’s leadership describes this budget as a measured approach to prevent “Toronto-style” tax surges and to ensure long-term fiscal health. The move reflects a broader trend in Canadian municipalities balancing tax pressures with infrastructure and service demands.
Implications for Residents and Business Owners
For property-owners and business entities alike, the tax and fare increases mark a key shift: greater investment in city core services comes at a higher cost. Transit-reliant commuters will feel the fare adjustment, while property-owners will absorb the tax rise. Business owners investing in the city may also need to factor in higher operating costs. The public engagement window now open presents an opportunity for stakeholders to voice concerns or support before the final vote.
