Ontario landlords can raise rent by up to 2.1% in 2026 on certain units. Specifically, this applies to units first occupied for residential purposes on or before November 15, 2018. Landlords must give 90 days’ written notice on the proper N1 form. In addition, new rules from Bill 97 and Bill 60 took effect July 1, 2026 and September 21, 2026. These rules changed how rent reviews can be challenged at the Landlord and Tenant Board. This guide covers the 2026 guideline, the 90-day rule, exempt units, and the 15-day review deadline. Finally, it explains what tenants can do if they receive an N1 they believe is wrong.
Ontario’s 2026 rent increase guideline: 2.1%
The Ontario government sets the annual rent increase guideline each year. Specifically, it bases the figure on the Ontario Consumer Price Index. The 2026 guideline is 2.1%. Therefore, it applies to units first occupied for residential purposes on or before November 15, 2018.
- 2024 guideline: 2.5%
- 2025 guideline: 2.5%
- 2026 guideline: 2.1%
The 2026 figure is the lowest guideline since 2021 (1.2%). As a result, it reflects slowing inflation across Ontario housing costs.
The 90-day notice rule
A landlord cannot raise rent mid-lease or with less than 90 days’ written notice. Instead, the notice must use the proper N1 form (Notice of Rent Increase) from the Landlord and Tenant Board.
- Form required: N1 (LTB standard form)
- Minimum notice period: 90 days before the increase takes effect
- Frequency: no more than once every 12 months
- Service method: delivered to the tenant (in person, mail, or as the lease allows)
For example, if your rent was last raised effective March 1, 2026, the earliest the next increase can take effect is March 1, 2027. This applies even if 12 months of notice would otherwise land earlier.
Exempt units: where 2.1% does not apply
Units first occupied for residential purposes after November 15, 2018 are exempt from the guideline cap. The landlord still must give 90 days’ written notice on the proper form. However, the increase amount is not capped at 2.1%.
- New-build apartments (occupied after Nov 15, 2018): guideline does not cap the increase
- Major renovation additions: certain capital improvements can be added above guideline via an above-guideline increase application (AGI) to the LTB
- Community housing, long-term care, certain co-ops: generally exempt from the guideline
Tenants in exempt units can still challenge the increase at the LTB if they believe it is unreasonable. However, the threshold for a successful challenge is materially higher than for guideline-capped units.
Bill 97 and Bill 60: what changed in 2026
Two major amendment packages to the Residential Tenancies Act took effect in 2026:
July 1, 2026 changes (Bill 97 / Bill 60 first phase)
- 15-day review deadline: the deadline for requesting an LTB review of a decision or order was reduced from 30 days to 15 days after issuance. However, the LTB retains discretion to extend where it considers an extension just and appropriate.
- In addition, updated Rules of Procedure, Practice Direction on Evidence, and several Interpretation Guidelines were issued in parallel.
September 21, 2026 changes (Bill 60 second phase)
- Additional LTB process and forms updates reflecting further amendments to the RTA.
- New information requirements and procedural changes for certain application types (T2/T6/L1/L2 filings).
- For the full list of changes, see the LTB Operational Update.
These changes affect how tenants can challenge a rent increase they believe is improper. In particular, the 15-day deadline on LTB reviews is the most consequential change for any tenant considering a challenge. For the arrears-side changes that pair with these guideline changes, see our Ontario N4 notice changes September 2026 guide.
What to do if you receive an N1 in 2026
If you believe the N1 is improper, you can challenge at the LTB within 60 days of receiving the notice. For instance, common issues include wrong form, insufficient notice, exempt unit mis-classification, or missing 12-month spacing. After the new July 2026 rules, the post-decision review deadline is 15 days.
- First, do not stop paying rent — non-payment during a dispute can trigger eviction proceedings
- Document the date you received the N1
- Compare the increase percentage against the 2.1% guideline (cap units only)
- Finally, file a T2 application with the LTB if the notice is improper, attaching a copy of the N1
For full procedure on filing an LTB challenge, see our tenant services overview. Alternatively, contact our team for help connecting with an Ottawa paralegal or tenant rights clinic.
Frequently asked questions
How much can a landlord raise rent in Ontario in 2026?
Up to 2.1% for units first occupied for residential purposes on or before November 15, 2018. However, units occupied after that date are exempt from the guideline cap. Even so, they still require 90 days’ written notice on the N1 form.
How many days notice must a landlord give for a rent increase in Ontario?
90 days’ written notice on the N1 form, delivered to the tenant at least 90 days before the increase takes effect. In addition, the landlord must wait at least 12 months between increases.
What changed at the Landlord and Tenant Board in 2026?
Two amendment packages took effect in 2026 from Bill 97 and Bill 60. Specifically, the most consequential change for tenants is the reduced review deadline — from 30 days to 15 days after an LTB decision — effective July 1, 2026. However, the LTB can extend the deadline where just and appropriate. In addition, further procedural updates took effect September 21, 2026.
Can a landlord raise rent above 2.1% in 2026?
Yes, for units first occupied after November 15, 2018 (no guideline cap applies). For guideline-capped units, the landlord can apply for an Above-Guideline Increase (AGI) to the LTB for capital improvements or unusually high utility costs. However, the AGI process requires evidence and LTB approval.
What if I receive an N1 with less than 90 days’ notice?
The notice is invalid. Therefore, you can continue paying your current rent and challenge the increase at the LTB. Keep a copy of the N1 with the date you received it and any proof of late delivery. In short, filing within 60 days of receiving the N1 is the safer approach.
Need help with a rent increase or N1 notice?
Browse our Ottawa rental advice library for guides on tenant rights, lease renewal, and Ontario dispute procedures. Alternatively, contact us for a free review of your situation.
Peter Sagos is an Ottawa rental specialist with Right at Home Realty Brokerage. This guide reflects Ontario’s 2026 rent increase guideline (2.1%) and the RTA amendments effective July 1 and September 21, 2026. For binding legal advice on your specific situation, consult a licensed Ontario paralegal or lawyer.