Ontario Construction News staff writer
Toronto City Council has adopted a record $63.1-billion, 10-year capital budget and plan as part of the city’s finalized 2026 budget, committing billions to renew aging infrastructure while maintaining a modest property tax increase.
The capital plan, covering 2026 to 2035, is the largest in the city’s history and focuses primarily on state-of-good-repair work, transit and mobility projects, housing and community facilities, and stormwater management.
More than half of the capital plan — about 53 per cent — is dedicated to repairing and maintaining existing assets, reflecting ongoing concerns about aging roads, bridges, transit systems and water infrastructure.
Of the $63.1 billion total, $42.6 billion is tax-supported and $20.5 billion is rate-supported, largely tied to water and solid waste services.
Major capital investments continue in transit expansion and renewal, including work to improve reliability and capacity, as well as housing and community infrastructure such as libraries, recreation centres and social housing. Funding is also directed toward stormwater systems and basement-flood mitigation as the city responds to more frequent extreme weather events.
The capital plan is supported in part by a dedicated 1.5 per cent city building fund levy, which remains in place to help finance transit and housing projects. Combined with operating impacts, the total residential property tax increase for 2026 is 2.2 per cent
City officials said the long-term capital strategy is designed to balance infrastructure needs with financial sustainability, supported by the Ontario-Toronto New Deal and the city’s recent credit rating upgrade to AA+.
Despite those measures, the city continues to face financial pressures from inflation, transit and emergency services costs, and limited municipal revenue tools
Toronto’s overall 2026 budget includes an $18.9-billion operating budget and incorporates $788 million in efficiencies, reductions and offsets. Input from more than 25,000 residents was gathered through consultations and public engagement sessions leading up to council’s decision.
Mayor Olivia Chow said the capital plan is essential to maintaining core services and protecting the city’s long-term assets.
“This budget invests in the infrastructure Toronto needs — housing, transit and state-of-good-repair — while keeping the city on a stable path,” she said in a statement.
Councillor Shelley Carroll, chair of the budget committee, said the focus on capital renewal reflects a commitment to “doing the basics well” while planning for future growth.
