For Immediate Release
CITY TO BEGIN NOTIFYING RENTERS OF AUTOMATIC RENT REDUCTION
Approximately 70% of renters in the City of Ottawa will be eligible for a rent reduction in 2026, thanks to a change in city taxation policy that had historically charged a disproportionately high tax rate for multi-residential properties built before 2002.
This savings stems from a direction from the office of Capital Ward Councillor Shawn Menard, directing the city’s Finance and Corporate Services Department to investigate reducing the Multi-Residential (MT) tax ratio.
“We wanted to bring some tax fairness to renters in Ottawa,” noted Councillor Menard. “For years, multi-residential properties have been taxed at a punitively high rate in this city, even though many of these buildings are far more cost-effective for the city, in terms of services and infrastructure.”
In 2024, the tax ratio for multi-residential properties was 1.409, meaning that for every dollar paid by other residential properties, multi-residential properties would pay $1.41. With the councillor’s intervention, city staff reduced the 2025 tax ratio to 1.3, and committed to further reducing it by 0.1 annually until a ratio of 1.0 is reached.
This reduction will affect 68 properties and an estimated 3983 units in Capital Ward.
“Over the next few years, we’ll be reducing an unfair tax burden on renters,” the councillor continued, “and, importantly, the savings will be passed on directly to tenants.”
Under the Residential Tenancies Act, any tax decrease greater than 2.5% requires the city to send notices to landlords and tenants, informing them of an automatic rent reduction for 2026.
The anticipated 4.5% property tax reduction will mean a mandatory rent reduction next year. For example, a person paying $2000 per month in rent will see an estimated $16 automatic rent reduction per month ($192 per year) in 2026.
At that rate, over the four-year phase-in period, the cumulative savings for renters would be an estimated $1960, with a cumulative annual rent reduction of $784 annually (or $64 monthly) at the end of the period.
A letter will be sent by the city to every owner and tenant of older multi-residential buildings.
Tenants may automatically reduce their rent effective January 1, 2026, provided they lived in the unit on December 31, 2025. Tenants do not need permission from the landlord or the Landlord and Tenant Board to reduce their rent. However, it is encouraged that tenants and landlords discuss and coordinate the reduction before December 31, 2025.
This change does not affect buildings built since 2002, as those buildings are already taxed at an equitable. It also does not affect many non-market housing buildings, as they are already at a reduced property tax (or are entirely exempt).
The city began sending letters to landlords at the end of August.
As noted in the city memo announcing the notifications, this rent reduction “represents Council's commitment to promote tax fairness across residential property types and reduce housing costs, in line with the Term of Council priority ‘A city that has affordable housing and is more livable for all.’”
“I am heartened to see a renewed commitment to affordability in the city, and I commend staff for their work in bringing greater tax fairness to the people of Ottawa and Capital Ward.”
Additional information regarding the Residential Rent Reduction program is available through the city's website. Any inquiries can be directed to Revenue Services by calling (613) 580-2444 or by emailing [email protected].
Ward Summary
|
Ward |
Ward Name |
Properties |
Units (Estimated) |
|
1 |
Orléans East-Cumberland |
2 |
64 |
|
2 |
Orléans West-Innes |
12 |
643 |
|
3 |
Barrhaven West |
1 |
41 |
|
4 |
Kanata North |
5 |
367 |
|
5 |
West Carleton-March |
3 |
51 |
|
6 |
Stittsville |
2 |
71 |
|
7 |
Bay |
97 |
8 591 |
|
8 |
College |
32 |
3 245 |
|
9 |
Knoxdale-Merivale |
38 |
3 222 |
|
10 |
Gloucester-Southgate |
14 |
2 028 |
|
11 |
Beacon Hill-Cyrville |
17 |
1 943 |
|
12 |
Rideau-Vanier |
264 |
7 164 |
|
13 |
Rideau-Rockliffe |
84 |
3 536 |
|
14 |
Somerset |
217 |
8 994 |
|
15 |
Kitchissippi |
52 |
2 622 |
|
16 |
River |
55 |
4 368 |
|
17 |
Capital |
68 |
3 983 |
|
18 |
Alta Vista |
41 |
5 682 |
|
19 |
Orléans South-Navan |
1 |
8 |
|
20 |
Osgoode |
3 |
93 |
|
21 |
Rideau-Jock |
4 |
97 |
|
22 |
Riverside South-Findlay Creek |
0 |
0 |
|
23 |
Kanata South |
3 |
292 |
|
24 |
Barrhaven East |
1 |
60 |
|
|
Totals |
1 016 |
57 165 |
To download this press release [PDF], click here.
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