Ottawa Proposes Major Rate Hikes in 2026 Budget – What You’ll Pay More

UPDATE: Ottawa’s proposed budget for 2026 is set to increase a variety of city fees and taxes, significantly impacting residents’ finances. The city is eyeing a 3.75% hike in property taxes, translating to an average additional cost of $166 for urban homeowners.

If approved, residents can expect a wave of increases across essential services. Water, sewer, and stormwater rates are projected to rise by 4.5%, costing the average user an extra $47.30. Garbage fees will see a substantial 10% increase, adding another $24 annually to household expenses.

Transit users are not spared, as transit fees will climb by 2.5%. For instance, a single ride fare will increase from $4.00 to $4.10 when paid by card, and monthly passes will jump from $135 to $138.50. Senior monthly passes will rise from $58.25 to $59.75, and one-day passes will go up to $12.25.

Additionally, hotel guests will feel the pinch with the municipal accommodation tax increasing from 5% to 6% to fund the redevelopment of Lansdowne Park.

Why This Matters NOW: The budget increases highlight ongoing cost pressures faced by the city, which officials credit to rising service delivery costs. With inflation impacting everyday expenses, residents could face a significant financial burden starting in 2026.

In recreation, fees are also set to rise. Adults renting an arena for one hour will see costs jump from $341.67 to $351.75. Most recreation fees, including public swims and museum admissions, will increase by approximately 3%.

Parking fees are also affected. The annual fee for a residential parking permit will rise 2.9%, going from $770 to $792. Maximum hourly rates at city-owned parking garages will soar by 23% to $8, with daily limits increasing by 4% to $26.

Public safety fees are increasing too, with an average rise of 3.3% for paramedic services. The cost of first aid certification will climb from $150.50 to $155.40, and open-air fire permits will increase by $1.

Businesses will not be exempt from the rate hikes. Most permits and licensing fees will see increases, including food premise licenses rising from $226 to $233 and pet shop licenses from $127 to $131. The application fee for removing distinctive trees will jump 7.5%, from $186 to $200.

The city is also implementing additional processing fees that will rise by 8.3%, from $60 to $65 in 2026. These changes are intended to cover the higher costs of service provision amid a tight budget.

What’s Next: The proposed budget is still subject to approval, and residents are encouraged to voice their opinions during the upcoming public consultations. As discussions unfold, the impact of these proposed increases could significantly shape the financial landscape for Ottawa residents.

Stay tuned for updates as this story develops. The city council is expected to finalize the budget in the coming months, and the implications for residents are poised to be profound. With costs rising across the board, residents will need to prepare for these financial adjustments.