Deciding to live in Toronto is not an easy expense. While many already find living in the city pricey,  rising property taxes and rent rates are both on the table for 2020. This means that renters and homeowners are once again going to be forced to pay more money to keep a roof over there heads.

A 2% property tax hike was recently floated by city staff as part of this year’s budget. By itself, the hike would only cost the average homeowner $61.

However, due to a previously approved 1.5% increase to Mayor John Tory’s city-building levy, it will now cost homeowners an extra $106 per year on average.

Tory stated back in December of 2019 that his proposed increase was necessary for the city.

He stated that due to Toronto's "disproportionate burden" to provide adequate services to GTA residents, the rise in taxes was the right thing to do. 

Tory made his pitch on December 11, 2019, before Toronto's executive council, where he presented a letter calling for councillors to back his plan.

"We need billions, not millions," Tory told CBC ahead of the meeting. "I'm absolutely confident it's the right thing to do."

In total, an expected 4.24% tax hike is expected in 2020 due to a combination of policy-related adjustments and various increases.

So, if you are a Toronto homeowner, you should expect to pay quite a bit more than you did last year.

Budget Chief Gary Crawford backed up Tory's decision by telling CTV on Friday that, “there are those that will suggest that council would like to raise taxes incredibly high and there will be others who suggest that we are spending far too much and that we should be slashing services, but I believe that this budget charts a responsible path forward.” 

“It strikes an important balance that protects services, invests in key services, and keeps property tax increases to fund the operating budget at the rate of inflation,” he added.

This proposed tax increase is expected to raise an additional $63 million for the city. 

As for Toronto renters, well, they won’t exactly be saving a ton of money either.

A Toronto-based market analysis firm discovered back in October residents are now paying an average of a whopping $2,515 per month thanks to recent rent increases.

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