The 2027 Rent Increase Guideline in Ontario: 1.9% and Your Notice Dates

The Ontario rent increase guideline for 2027 is 1.9%. That is the most a landlord can raise most tenants' rent in a year without approval from the Landlord and Tenant Board. The increase also needs written notice in the proper form at least 90 days ahead, and in most cases 12 months since the last increase. This guide shows how to work out the new rent and when to send notice.

The 2027 rent increase guideline in Ontario: 1.9%

Ontario's rent increase page says the guideline for 2027 is 1.9%. It is lower than the 2026 figure of 2.1%. The government describes it as the maximum a landlord can raise most tenants' rent during a year without the approval of the Landlord and Tenant Board (LTB).

A few points about how it is set and who it covers:

• It is based on the Ontario Consumer Price Index, using data from June to May to set the guideline for the following year.
• It is capped at 2.5%, so one very high inflation year cannot cause a large one-time jump.
• It applies to most private residential rental units covered by the Residential Tenancies Act, 2006, including rented houses, apartments, basement apartments and condos.
• It is a limit, not a target. You are allowed to raise rent by less, or not at all.

Ontario's own sample calculation applies the 2027 guideline to an increase that takes effect on June 1, 2027. If your increase takes effect in 2026, look at the 2026 line in the government's table of past guidelines instead.

How to calculate a rent increase in Ontario

The maths is simple. Work through it for each unit, because tenants pay different rents and last increases fall on different dates.

1. Confirm the unit is eligible. At least 12 months must have passed since the last increase or since the tenancy began, and the unit must not be exempt (see the exemptions section below).
2. Start from the full current rent. The LTB's N1 form says the rent includes the basic rent for the unit plus any amount the tenant pays separately to the landlord for services.
3. Multiply by 0.019. That gives the largest increase the guideline allows.
4. Add it to the current rent. A shortcut is to multiply the current rent by 1.019.
5. Round down, not up. If the answer has fractions of a cent, drop them so the increase never goes past the guideline.
6. Check the percentage. The N1 asks for the new rent, the increase as an amount and the increase as a percentage. The percentage must not be above 1.9%.

Ontario's rent increase page includes a worked example if you want to compare your arithmetic against the government's. Use a different calculation for each tenancy. Do not apply one number to the whole building without checking each unit's last increase date.

How much notice to increase rent in Ontario: the 90-day rule

The landlord must give the tenant written notice in the proper form at least 90 days before the increase takes effect. The proper forms come from the LTB. Counting back is easy to get wrong, so use a date table when you plan.

Treat those dates as hard stops, not targets. Confirm with the LTB or a licensed paralegal how your delivery method affects the date a notice counts as given, and give notice well before the date in the table. If the date for your January 1 increase has already passed, choose a later effective date and count back again. Never shorten the notice by backdating the form.

The 12-month rule runs alongside it. In most cases, the rent can be increased only if at least 12 months have passed since the last rent increase or the date the tenancy began. In most cases that means no more than one increase a year.

How to notify a tenant of a rent increase: the N1 notice

The standard form for a guideline increase is the N1, Notice of Rent Increase. The LTB lists it on its forms page with instructions. The September 21, 2026 changes updated several other LTB forms, but the N1 is not on the list of updated forms, so the standard N1 from the LTB forms page is the one to use. Download it from the LTB each time rather than reusing an old copy, and check the version before you print.

On the N1 you fill in:

• the tenant's name and the address of the rental unit, and the landlord's name and address;
• the date the new rent starts;
• the new rent and how often it is paid;
• the increase as an amount and as a percentage;
• which box applies: an increase at or under the guideline, or one above it that is approved or applied for.

Sign and date it, then give it to the tenant. Keep a copy, a note of the date and method used, and proof of delivery. If the tenant believes the notice was not proper or the amount is wrong, Ontario says they can dispute it at the LTB within 12 months after the amount was first charged.

Our guide to the N1 rent increase notice goes through the form step by step. If you manage several units, lease management from D&D Property Management tracks each tenancy's renewal date and times the notices to the 90-day rule, with the scope agreed in writing.

Which units are exempt from the 2027 guideline

Ontario lists these as outside the guideline:

• new buildings, additions to existing buildings and most new basement apartments occupied for the first time for residential purposes after November 15, 2018;
• rental units when a tenancy turns over and the landlord and new tenant agree on the rent;
• community housing units, long-term care homes and commercial properties.

In care homes such as retirement homes, the guideline applies only to the rent portion of the bill, not to services such as nursing, food or cleaning.

If you rely on the post-2018 exemption, be ready to prove it. Ontario says that if there is a dispute, the landlord must show the building or addition was first occupied for residential purposes after November 15, 2018. It suggests keeping building permits, occupancy permits and new home warranty documents, and adding a lease term stating the unit is exempt. Ontario's rules for rent increases list the 12-month wait and the written notice without carving out exempt units, so confirm with the LTB how they apply to yours.

Raising rent above 1.9% and planning your 2027 notices

A landlord who needs more than the guideline allows has two routes. One is an LTB application, the L5, Application for a Rent Increase Above the Guideline. The other is an N10, an Agreement to Increase the Rent Above the Guideline, signed by landlord and tenant. According to the N1 form, if an increase needs approval by order, the tenant is not required to pay more than the guideline amount until the order is issued. Read our above-guideline increase post before you start, because these applications take evidence and time.

For a normal increase, plan like this:

1. List every tenancy with its last increase date or start date.
2. Mark each one that reaches 12 months in 2027.
3. Pick an effective date, count back 90 days using the table above, and add a safety margin.
4. Calculate each new rent, fill in an N1 for each and deliver it with proof.
5. Record the new rent in your ledger and calendar the next 12-month date.

For the 2.1% year, see our post on the 2026 guideline. Check the Ontario page and the LTB forms page before every round of notices, because the LTB changed several rules and forms on September 21, 2026.

Rent increase questions landlords ask

What is the rent increase guideline for 2026 in Ontario?

Ontario's table of past guidelines lists 2.1% for 2026. The 2027 figure is 1.9%. Each year's guideline is the most a landlord can raise most tenants' rent without LTB approval. Check which year your increase takes effect in, and use that year's figure for your calculation.

How much notice do I have to give to increase rent in Ontario?

At least 90 days of written notice, in the proper LTB form, before the increase takes effect. For a guideline increase that form is the N1. In most cases the rent can only go up if 12 months have passed since the last increase or the start of the tenancy.

Can a landlord raise rent by more than 1.9% in 2027?

Only with approval or agreement. A landlord can apply to the LTB for an above-guideline increase on an L5 application, or sign an N10 agreement with the tenant. Without one of those, the increase cannot go past the guideline for a unit the guideline covers. Ask the LTB or a paralegal about your case.

Does the 2027 guideline apply to a newer rental building?

Not if the unit was first occupied for residential purposes after November 15, 2018. Ontario lists new buildings, additions and most new basement apartments occupied for the first time after that date as exempt. A landlord claiming it should keep records such as occupancy permits and be ready to prove it.

Is the N1 form different since September 21, 2026?

The LTB's September 21, 2026 update lists the forms it changed, and the N1 is not on that list. Other forms, such as the N4 and N12, were updated, and the LTB says previous versions of those stop being accepted on November 30, 2026. Always download the current form from the LTB.

Devon Moore, Operations Lead Co-Founder & Operations Lead — D&D Property Management

Devon Moore is the co-founder and Operations Lead at D&D Property Management, managing rental properties across Kitchener-Waterloo, Cambridge, Guelph and Waterloo Region.