Can my landlord increase the rent because of higher taxes?
Yes, landlords can increase the rent because of higher taxes.
But if you are covered by the guideline, and the landlord wants to increase your rent by more than the guideline amount, then the landlord must apply to the (LTB). The LTB can order a higher rent increase, called an above guideline increase (AGI).
A landlord can ask for an above guideline increase because of higher municipal taxes or charges. These include:
- property tax
- education tax
- rental housing licensing fees
- garbage and waste fees
Your landlord can't ask for an above guideline increase because of higher taxes from the government of Canada or the province of Ontario.
And the municipal tax or charge must have increased by an “extraordinary” amount. An increase is “extraordinary” if it is more than:
- the guideline amount for that year, plus
- 50% of the guideline amount.
In 2024, “extraordinary” means the tax or charge increases by more than 3.75%.
Exceptions
These rent rules don't apply to some rental units. For example, if you must share a kitchen or bathroom with your landlord or their family, your landlord can usually raise your rent as much as they want and whenever they want.
