Toronto City Council has approved the city's 2026 budget, signing off on an $18.9-billion operating plan and a 10-year capital budget that the city says is the largest in its history.

The budget — Mayor Olivia Chow's third since her election in 2023 — was passed at a special meeting of council on Tuesday, according to a statement from Councillor Paula Fletcher, who represents Toronto-Danforth and published a budget breakdown on her website.

The centrepiece of the plan is a $63.1-billion capital budget and plan covering 2026 to 2035, which Fletcher described as the biggest 10-year capital commitment the city has ever made.

Affordability measures

Fletcher said the budget's affordability measures — including frozen TTC fares and free meals for students — would save a working family with two children about $1,200 a year on groceries and transportation costs alone.

The property tax increase for 2026 is set at 2.2 per cent, which Fletcher noted is below the rate of inflation. The budget also proposes what she called a fairer approach to funding city services, asking "empty home speculators and luxury property buyers" — the top 2 per cent of all buyers — to contribute more.

The budget also includes $788 million in new savings and efficiencies, according to Fletcher, who said the city's financial position has improved over the past two years under Chow's leadership.

Services and community supports

Among the service investments, the budget funds seven-day-a-week library access and increases funding for tenant supports, home upgrade grants, flood protection, and programs that help seniors stay in their homes.

On public safety, Fletcher said shootings, youth violence and 911 wait times have all significantly decreased. The budget builds on that trend, she said, by investing in more firefighters, paramedics, police officers and mental health workers, while boosting crime prevention programs.

Public input shaped the plan

More than 25,000 residents took part in budget consultations held in October 2025, including telephone town halls and local events such as Fletcher's own budget town hall, ensuring the final plan reflected residents' priorities, her statement said.

"I was pleased to support Mayor Chow's budget and her progressive vision of a more affordable, caring and safe Toronto," Fletcher wrote in her post.

Other council business

The budget vote came during a busy final stretch of the 2022-2026 council term. According to Fletcher's update, councillors also dealt with a maximum heat bylaw to protect tenants during extreme heat, a new funding deal to build more housing, and the provincial upload of the Gardiner Expressway and Don Valley Parkway.

Other items on the agenda included Fletcher's motion about odours from the Ashbridges Bay sewage treatment plant, a redevelopment plan for Ookwemin Minising, and increased support from the mayor's office for vulnerable youth and low-income tenants.