General information about Ontario law as of the date above, not legal advice. The law and the Board's forms change; check the sources at the end of the page.
The rent increase guideline for 2027 is 1.9%. For most rental units, it is the most you can raise a current tenant’s rent for an increase that takes effect in 2027, unless your tenant agrees to more under the Act or the Board approves it. You must also give at least 90 days’ written notice on the Board’s form, and at least 12 months must have passed since the last increase. This page is general information about the law as of 15 October 2026, not legal advice.
What is the rent increase guideline for 2027?
It is 1.9%. The Ontario government sets the guideline for each calendar year from the Ontario Consumer Price Index over the 12 months ending in May of the year before. The Act caps it at 2.5%, and it must be published by 31 August of the year before.
| Year the increase takes effect | Guideline |
|---|---|
| 2023 | 2.5% |
| 2024 | 2.5% |
| 2025 | 2.5% |
| 2026 | 2.1% |
| 2027 | 1.9% |
A guideline increase does not need the Board’s approval. On a rent of $1,000 a month, 1.9% is $19.00, so the new rent is $1,019.00.
Which rent increases does the 2027 guideline apply to?
It applies to increases that take effect from 1 January to 31 December 2027. What counts is the date the increase takes effect, not the date you give the notice. An increase on 1 February 2027 uses 1.9%, even if you gave the notice in October 2026. An increase that takes effect in December 2026 uses the 2026 guideline of 2.1%.
How much notice do you need to give?
At least 90 days, in writing, on a form approved by the Board that states the new rent. Do not count the day you give the notice. Do count the day the increase takes effect.
You can hand the notice to your tenant or to an adult in the unit, leave it in the mailbox or where mail is usually delivered, slide it under the door or through a mail slot, or send it by mail, courier or fax. Email is allowed only if your tenant agreed in writing to get documents by email. You cannot post it on the door. Name every tenant who lives in the unit.
Mail counts as given on the fifth day after mailing. A courier delivery counts as given the day after you give it to the courier, or the next day that is not a holiday.
With less than 90 days’ notice, the increase is void, and you must give a new notice. The Board cannot shorten the 90 days.
Which form do you use: the N1 or the N2?
Use the N1, Notice of Rent Increase, when the guideline applies to the unit, as it does for most units. Use the N2, Notice of Rent Increase (Unit Partially Exempt), when the unit is exempt from the guideline. Going above the guideline uses the N10 or the L5, described below.
How often can you raise the rent?
Once every 12 months. At least 12 months must have passed since the last increase for that tenant in that unit or, if there has been none, since the unit was first rented to them. In the government’s example, a lease signed on 1 June 2026 can have its first increase on 1 June 2027. The Board cannot shorten the 12 months. An agreed charge for parking or a listed service, described below, does not count as an increase.
Is your unit exempt from the guideline?
It may be, if it was first lived in after 15 November 2018. The guideline does not apply to a unit in a building, or entirely in an addition, if no part of it was occupied for residential purposes on or before that date. A unit created in a house can also be exempt if all of these apply:
- The detached, semi-detached or row house had no more than two residential units on or before 15 November 2018.
- The unit has its own bathroom and kitchen. Each entrance has a door that can be secured from inside, and at least one can be locked from outside.
- It became such a unit after 15 November 2018.
- The owner lived in another unit in the house when the new unit was first occupied, or the new unit was built in space that was unfinished.
The exemption does not cover a tenancy whose agreement was made on or before 15 November 2018, but it does cover later tenancies. If your tenant disputes it at the Board, you must prove it applies, so keep records such as building permits, occupancy permits and contractors’ invoices.
An exempt unit has no limit on the size of the increase. You still give at least 90 days’ written notice on the N2, and you still wait 12 months between increases.
Care homes (Form N3), social and non-profit housing, rent-geared-to-income units and mobile home or land lease sites have their own rules. This page does not cover them.
Does the guideline apply when a new tenant moves in?
No. The guideline limits increases during a tenancy. For a new tenant under a new tenancy agreement, the lawful rent is the rent you first charge them. Their 12 months start on the day the unit was first rented to them. A different rule applies if a Board order stopping rent increases is in effect for the unit.
Can you raise the rent by more than 1.9%?
Yes, in these cases:
- An N10 agreement. You and your tenant can agree to an increase in exchange for capital work or a new or additional service. For 2027, it can be at most 4.9% of the previous lawful rent: the guideline plus 3%. Your tenant can cancel within five days of signing, and the agreement takes effect no earlier than six days after signing. No N1 is needed.
- An L5 application. You can ask the Board for more than the guideline because of an extraordinary increase in municipal taxes and charges, eligible capital expenditures, or security services from people you do not employ. File it at least 90 days before the first increase, and still give the N1. Until the order, your tenant need pay no more than the guideline amount. The part for capital work and security is limited to 3% above the guideline a year, spread over up to three years.
- Parking or a listed service. You and your tenant can agree that you will add a parking space or a listed service, such as storage space, cable or satellite television, an air conditioner, or extra electricity for a washer or dryer. The increase is at most your actual cost or, if there is no cost or it cannot be shown, an amount based on its value. You need no N1 and no 12-month wait.
Since 1 July 2026, if you supply the electricity and your tenant installs a window or portable air conditioner, you can also charge up to the cost of the electricity it uses, unless the tenancy agreement allows one without a rent increase.
What happens if your tenant paid an increase that was not lawful?
If your notice asked for more than the guideline without an order or an agreement, your tenant is treated as accepting only the increase the Act allows.
Your tenant can apply to the Board, on Form T1, for an order that you pay back money collected in breach of the Act. The application must be filed within one year after the money was collected.
An increase that was void because the notice was missing or late becomes valid if your tenant paid it for 12 months in a row and did not apply about it within one year of first being charged. More generally, an increase is treated as lawful unless an application about it is made within one year after it was first charged. If you find a mistake in a notice, give a new notice before you take the increase.
Does the 1.9% also apply to the rent deposit?
Yes. You must pay your tenant interest on a rent deposit every year, at the guideline in effect when the payment is due: 1.9% for interest due in 2027. After a lawful increase, you may ask your tenant to pay more so the deposit matches the new rent, up to one month’s rent. You can also keep some or all of the year’s interest to make up that difference.
A worked example
Your tenant pays $2,000 a month, due on the 1st. The last increase took effect on 1 March 2026. The unit is not exempt.
| Step | Date or amount |
|---|---|
| Earliest next increase (12 months) | 1 March 2027 |
| Guideline for that date | 1.9% |
| Most the rent can go up | $38.00, to $2,038.00 |
| Last day to hand the N1 to your tenant | 1 December 2026 |
| Last day to mail it | 26 November 2026 (it counts as given on 1 December) |
If you instead hand the N1 over on 15 December 2026, there are fewer than 90 days before 1 March 2027. An increase on 1 March would be void, and the earliest date would be 15 March 2027. If you hold a $2,000 rent deposit, you can ask for $38.00 more so it matches the new rent.
How does the rent increase calculator help?
The free rent increase calculator does the counting. Enter the rent, the date of the last increase and how you will give the notice. It shows the earliest date the increase can take effect, the last day to give the notice, the most the guideline allows and whether to use the N1 or the N2, with the rule behind each answer. It also says when your situation needs different rules, such as a care home.
For an N10, an L5 or a disputed exemption, see raising the rent.