With a new year comes new laws, regulations and rules.  We thought it would be helpful to summarize those changes and identify if they are Ontario wide or municipality specific.  Some of the changes are happening immediately and in place as of January 1, 2026, whereas others are scheduled to begin later in the year.  Let’s get you up to speed!

Ontario Fire Code

Effective January 1, 2026, homes with fuel-burning appliances (like a furnace, water heater, or stove that uses natural gas, propane, oil, or wood), homes with fireplaces or homes with attached garages now require CO (carbon monoxide) alarms adjacent to each sleeping area and on every storey.

  • It used to be that a CO alarm was only required per floor where there are bedrooms, but now every sleeping area must have one adjacent to it and every floor of the home (regardless of whether there are bedrooms) require one.
  • If you own a condo, you’re not necessarily off the hook.  If the unit has a fuel-burning appliance in the unit, or if it is heated by one (even if located elsewhere, such as a furnace in a building service room), then you have to follow the new rules.  In addition, if the unit is located directly above, below or beside the building service room or the building garage, you have to follow these new rules.

Ontario Rental Rate Increase Guideline

The Ontario-wide rent increase guideline for 2026 is 2.1%.  This is the maximum a landlord can increase most tenants’ rent during 2026 without the approval of the Landlord and Tenant Board.

  • For most tenants, your rent can’t go up by more than the rent increase guideline for every year. However, the guideline does not apply to new buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018.

Brampton Residential Rental Licensing

Effective January 1, 2026: Brampton’s Residential Rental Licensing (RRL) requirement applies across all wards for rental properties with 1–4 units.

  • This includes single homes rented out, homes with an additional residential unit like a basement apartment, and up to fourplexes or garden suites.
  • Every license will carry clearer conditions tied to maintenance, occupancy, insurance, and compliance, and applicants must complete a one-time online educational module. The City’s process explicitly requires compliance with safety, fire, and property standards, and indicates a minimum $2M liability insurance.

Toronto Land Transfer Tax Rate Increase

Effective April 1, 2026, Toronto is putting in an additional increase to their municipal land transfer tax for homes sold for more than $3M.  Here’s the increases.

  • Over $3,000,000 and up to $4,000,000: 3.5% → 4.40% (+0.90 percentage points)
  • Over $4,000,000 and up to $5,000,000: 4.5% → 5.45% (+0.95 percentage points)
  • Over $5,000,000 and up to $10,000,000: 5.5% → 6.50% (+1.00 percentage point)
  • Over $10,000,000 and up to $20,000,000: 6.5% → 7.55% (+1.05 percentage points)
  • Over $20,000,000: 7.5% → 8.60% (+1.10 percentage points)

Properties sold in Toronto that are under $3M have the same MLTT as currently in place.

Changes in Other Municipalities

Other parts of the GTA will be making some changes in 2026 to their rules or by-laws, but they are not particularly impactful.

In Durham and York, there aren’t big region-wide “new for 2026” change that compares to Toronto’s tax changes or Brampton’s rental licensing expansion.  Almost all municipalities in Durham and York have existing rental license rules.  For example, Oshawa has licensing requirements for certain rental housing and also licenses/regulates short-term rentals, Vaughan allows short-term rentals only through a licensing framework (typically tied to principal residence concepts and related taxes), and Markham’s zoning approach effectively prevents short-term rentals.  Toronto remains the only municipality given permission by the province to charge an additional MLTT, so no other regions have that in play.

Halton and Simcoe have a few more concrete 2026 items, but they’re mostly cost or licensing details rather than market-shifting changes. Oakville is introducing a stormwater fee in 2026 (phased in, with typical annual amounts varying by housing type), Burlington continues to require short-term rental licensing with a 2026 owner/operator fee shown at $300, and Milton’s short-term rental licensing has been in place since 2022. In Simcoe, Orillia is changing its short-term rental licensing fees for the 2026 licensing year (a per-bedroom model with a cap), while Collingwood’s short-term accommodation licensing has been in effect since early 2025 and Barrie continues to regulate certain lodging/rooming-style housing through licensing.

While that may be it for immediate or planned changes, we expect to see a number of other changes in 2026 as Bill 60 comes into force.  On November 27, 2025, Bill 60 became law, but Schedule 12 (with the RTA changes) was not automatically activated and still needs a separate “in-force” order.  When that happens, we’ll write an article on what it means for landlords and tenants as well as people buying or selling income properties.

If you’re planning on making some real estate moves in 2026, we’d love to talk further about how we can help and what you need to know!