Toronto’s 2025 Budget: A Focus on Affordability, Safety, and Community Growth

On January 13, 2025, the City of Toronto officially unveiled its proposed 2025 budget, signaling a renewed commitment to affordability, public safety, improved transportation, and enhanced community services. Mayor Olivia Chow and the Budget Committee Chair, Councillor Shelley Carroll, outlined the city’s financial priorities, which include an $18.8 billion operating budget and a historic 10-year $59.6 billion capital investment plan.

While these investments aim to address pressing issues facing Torontonians, they come with increased costs for residents and businesses through property tax hikes and levies. Here’s a breakdown of the city’s priorities, funding allocations, and how they will impact Toronto families.

The proposed $18.8 billion operating budget aligns with the priorities shared by residents during consultations held in October 2024. These consultations, involving over 12,000 survey responses and multiple community discussions, emphasized the need for investments that make life in Toronto more affordable, improve mobility, ensure public safety, and enhance access to community services.

Key investments for 2025 include:

• Affordability: $94 million in new initiatives to support vulnerable communities, including feeding an additional 8,000 students through school food programs and expanding support to 300 more households through the Rent Bank program.

• Transportation: A 5.8% increase in transit service hours, equating to approximately half a million additional service hours, coupled with the addition of traffic agents to ease congestion and improve safety.

• Public Safety: Hiring 276 new emergency services personnel, expanding youth violence prevention initiatives, and bolstering road safety programs.

• Community Services: Extended Sunday hours at 67 public libraries, additional cleaning for recreational facilities, longer outdoor pool hours, and greater access to cultural events and initiatives.

To support the operating budget, the city is proposing a 5.4% property tax increase for residential properties, which translates to an additional $210 annually—or approximately $17.50 per month—for the average homeowner. For multi-residential and commercial properties, taxes will rise by 2.7%, while industrial properties will see a 5.4% increase.

In addition, a 1.5% increase to the City Building Fund levy, aimed at funding transit and housing initiatives, will cost the average homeowner an extra $58.37 annually. Together, these measures represent a combined 6.9% tax increase, amounting to $5.50 per week for the average property owner.

While these increases build on last year’s historic 9.5% hike, the city has sought to balance the financial burden by identifying $41 million in efficiencies, helping to prevent even steeper tax hikes.

Toronto’s 2025-2034 capital budget is the largest in the city’s history, with $59.6 billion allocated to critical infrastructure and climate action. Of this, $32.4 billion—54%—is dedicated to the state of good repair for essential assets like roads, bridges, and public transit.

Major capital investments include:

• Transit and Mobility: $4.9 billion for transit improvements to enhance reliability, safety, and capacity.

• Community Services: $2 billion for key projects such as recreation centers and affordable housing developments.

• Climate and Flood Protection: $2.9 billion for climate initiatives, including reducing greenhouse gas emissions by 160,725 tonnes.

These initiatives are part of the city’s long-term strategy to ensure financial sustainability while addressing urgent infrastructure needs.

The proposed tax increases are likely to place financial strain on Toronto families, especially those already grappling with affordability challenges. To mitigate this, the city offers property tax relief programs for low-income seniors and individuals with disabilities. Additionally, measures like freezing TTC fares and maintaining a 15% property tax reduction for over 28,000 small businesses aim to alleviate some financial pressures.

For families, the budget also promises tangible benefits, such as:

• Extended hours at libraries and pools, providing more opportunities for leisure and education.

• Safer streets through increased emergency response capacity and road safety programs.

• Expanded food programs to support children and youth across the city.

Recognizing the importance of resident input, the city has provided multiple opportunities for public engagement. Two telephone town halls, scheduled for January 15 and 23, will allow residents to discuss the budget directly with Mayor Chow and senior city staff. Additionally, public meetings will be held on January 21 and 22 at various civic centers, with residents invited to share their feedback in person or via video conference.

These consultations will culminate in a final budget presentation by February 1, with City Council voting on February 11.

As Chow stated, “This budget will mean change in Torontonians’ lives today—change that makes libraries accessible seven days a week, freezes transit fares, and supports vulnerable residents.”

The increased costs, though significant, are positioned as investments in the future of Toronto. As Councillor Shelley Carroll emphasized, “We’re on a clear path forward, a confident path forward. This is our budget, all of our budget, and it reflects who we are and the future we hope to build together.”

For more information, residents can visit the City of Toronto’s budget webpage or contact their local councillors. While the financial implications are considerable, the proposed 2025 budget aims to deliver meaningful improvements that resonate with the needs and aspirations of Toronto’s diverse communities.