Ottawa residents will find out how the City of Ottawa plans to spend their tax dollars next year, when the 2026 city budget is tabled on Wednesday. Mayor Mark Sutcliffe will speak with reporters at 9 a.m. on Wednesday before staff present the budget to Council during the meeting at 10 a.m. Council directed staff to draft the 2025 budget with a maximum 3.75 per cent property tax hike, along with a transit fare increase of up to 7.5 per cent. Here is what you need to know about the 2026 draft budget ahead of Wednesday’s council meeting. Property tax hike Council voted to draft the 2026 City of Ottawa budget with a maximum 3.75 per cent hike in property taxes. Under the budget directions, the budget would be drafted with a 2.9 per cent increase in funding to support most city services, including the Ottawa Police Service, Ottawa Public Health and the library board. The transit levy would increase between 3 per cent and 15 per cent under the plan to fund OC Transpo. A 3.75 per cent property tax hike would add $166 to the average property tax bill. OC Transpo In addition to the increase in the transit levy, staff have been directed to draft the 2026 OC Transpo bus with a fare increase of between 2.5 per cent and 7.5 per cent. The proposed fare increase comes as OC Transpo projects a multi-million-dollar funding shortfall for 2026. In 2025, OC Transpo increased transit fares five per cent and eliminated free rides for 11-and 12-year-olds. The cost of an adult monthly pass increased $6.25 to $135 a month in 2025. A senior monthly transit pass increased $9.25 a month to $58.25. Water, garbage fees increasing According to the 2026 budget directions, it will cost more to turn on the taps and flush the toilet next year. The Long Range Financial Plan for Water, Wastewater and Stormwater proposes a 4.5 per cent increase for rate-supported water and wastewater services. The estimated single family connected home will pay an extra $47.30 in 2026, according to the plan. The solid waste services fee is expected to increase $2 a month on the tax bill. Recreation fees The budget directions also propose a 2.9 per cent “cost of living increase” to all recreation and cultural fees for 2026. Cap on employees The 2026 city budget will include a cap on the number of employees working at City Hall. Council voted 14 to 10 in September to support a motion from Coun. David Brown to impose a cap of 17,105 employees on the city’s payroll. The motion exempts paramedics, firefighters, and Bylaw Services, and requests the exemptions on the cap be made for the Ottawa Police Service, OC Transpo, Ottawa Public Library, Ottawa Public Health and long-term care and childcare positions. City staff told CTV News Ottawa that the city had 17,100 full-time equivalent positions, with 90 per cent delivering frontline services. Ottawa Police budget The Ottawa Police Service’s Board will table the 2026 police budget at 8:30 a.m. Wednesday. The Council direction caps the police tax rate increase between 2.9 per cent and 6.5 per cent. Police had been initially projecting a 10 per cent budget increase for next year. “At a police tax increase rate of 6.5 per cent, the OPS will be unable to grow by 50 positions,” staff said in a report for the Ottawa Police Services Board in September. “Given this, the OPS has adjusted its growth plan and now intends to grow by only 25 positions in 2026. The remaining 25 positions originally included as growth positions will be self-funded using efficiencies found in an upcoming span of control exercise.” Municipal Accommodation Tax Visitors staying in hotels will be paying more in 2026 to fund tourism in Ottawa. The 2026 budget will outline plans to increase the Municipal Accommodation Tax by one per cent to six per cent on Jan. 1, 2026. A total of $2 million will go towards the Lansdowne 2.0 project. The remaining $3 million from the Municipal Accommodation Tax increase will support city tourism priorities. Budget timeline Council and the public will get their first look at the 2026 City of Ottawa budget on Wednesday. The standing committees and boards will approve the budgets between Nov. 19 and Dec. 8, and Council will vote to finalize the budget on Dec. 10. Previous tax hikes
