How Much Can a Landlord Raise Rent in Ontario?

If you've ever opened a rent-increase notice and wondered "is this even allowed?", you're not alone. In Ontario, most rent increases are capped by an annual rent increase guideline — set at 2.1% for 2026 — and your landlord has to follow strict notice rules. This guide explains the cap, the exceptions, and shows the math on a real example.

Key takeaways

• The 2026 Ontario rent increase guideline is 2.1%.
• The guideline applies to units first occupied on or before November 15, 2018.
• Units first occupied after November 15, 2018 are exempt from the guideline.
• Rent can rise only once every 12 months, with 90 days' written notice on Form N1.
• On $1,800 rent, a 2.1% increase is $37.80 per month.

What is the rent increase guideline?

Each year, Ontario sets a rent increase guideline — the maximum percentage a landlord can raise rent on most existing tenancies without special approval. For 2026, the guideline is 2.1%.

The guideline exists to keep rent increases predictable for long-term tenants. It's tied to the cost of living, and it applies to most rented apartments, houses and condos covered by the Residential Tenancies Act.

Does the cap apply to you?

This is the part that trips up the most renters. Whether the 2.1% cap protects you depends on when your unit was first occupied as a residence:

• First occupied on or before November 15, 2018 — the guideline applies, so your 2026 increase is capped at 2.1%.
• First occupied after November 15, 2018 — the unit is exempt from the guideline. There's no percentage cap, though the landlord still must give 90 days' notice and can only increase once every 12 months.

Newer buildings aren't capped

If your unit first became a home for someone after November 15, 2018, your landlord can legally ask for more than 2.1%. The 90-day notice and 12-month rules still apply, but the percentage isn't limited by the guideline.

A worked example

Say you pay $1,800 a month in a unit that qualifies for the guideline. Here's the 2026 math:

$1,800 × 2.1% = $37.80. Your new monthly rent would be $1,837.80 — and your landlord must give you 90 days' written notice before it takes effect.

Do the math before you sign anything

Multiply your current rent by 0.021. If the increase on your notice is higher than that — and your unit qualifies for the guideline — you don't have to agree to it. You can raise it with the Landlord and Tenant Board.

The notice rules

Even a legal increase is only valid if it's served correctly. In Ontario, a rent increase must:

1. Come in writing on Form N1 (the official Notice of Rent Increase).
2. Give at least 90 days' notice before the new rent starts.
3. Wait at least 12 months since the last increase or since the tenancy began.

If any of these are missing, the increase isn't valid and you can keep paying your current rent until a proper notice is served. For the bigger picture on what landlords can and can't do, see tenant rights in Ontario.

When rent feels too high to keep renting

Rising rent leads many tenants to ask whether buying would cost less in the long run. It's worth running the numbers honestly — see renting vs buying a home in Canada and the rent vs buy calculator.

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