Toronto Plans Property Tax Increase Over $107M Migrant Service Shortfall

Toronto Mayor Olivia Chow has announced that the city faces a significant funding shortfall related to the sheltering of migrants and housing support, with a $107 million deficit due to the federal government not covering refugee shelter expenses. This shortfall, coupled with a drastic reduction in the Canada-Ontario Housing Benefit (COHB) funding—from nearly $20 million in 2025 to under $8 million next year—threatens to worsen homelessness and strain shelter systems. Chow warned that the city must either stop providing shelter to refugee claimants, exacerbating homelessness, or raise property taxes by at least 2 to 3 percent to cover these costs, potentially pushing tax increases beyond 25% when combined with recent hikes. Despite these financial pressures, Chow has not proposed reducing her salary or cutting costly trade missions. City officials and advocates emphasize the need for the federal and provincial governments to fulfill their responsibilities to avoid further burdening Toronto residents. The funding cuts are expected to impact other city services, as the shelter system's strain influences transit, libraries, and parks, and forces potential budget cuts elsewhere.