A rent increase is not just a calculation. A correct percentage on a notice served too late, or on the wrong form, can still create a problem. Start by checking whether the guideline applies, then work through amount, timing, form, and service in that order.
2026 Ontario calculator
Calculate the guideline increase
Enter the current lawful monthly rent to estimate a 2.1% guideline increase.
Use the lawful rent before the increase. Do not subtract a temporary rent discount unless the rules require it.
Monthly increase
$42.00
New monthly rent
$2,042.00
Added per year
$504.00
How to calculate a 2.1% rent increase
Multiply the current lawful monthly rent by 0.021. Add that increase to the current rent:
$2,000 × 0.021 = $42.00 increase
$2,000 + $42.00 = $2,042.00 new monthly rent
The guideline is a maximum, not an obligation. A landlord can increase rent by less than 2.1% or choose not to increase it. It is generally not a “use it or lose it” amount that can simply be stacked onto a later guideline increase.
Does the 2026 guideline apply to your unit?
The 2.1% cap applies to most private residential rental units covered by Ontario’s Residential Tenancies Act. But not every unit is subject to the guideline.
| Situation | Likely notice | Guideline |
|---|---|---|
| Most units first occupied for residential purposes on or before Nov. 15, 2018 | N1 | 2.1% maximum without an LTB order |
| Many new buildings, additions, and new basement units first occupied after Nov. 15, 2018 | Usually N2 | Exempt from the guideline, but notice and timing rules still matter |
| Care home rent and service charges | N3 may apply | Special rules apply |
The key date usually concerns when the unit or relevant building area was first occupied for residential purposes, not when the current tenant moved in. The landlord bears the burden of proving an exemption. If the history is unclear, verify it before selecting a form or amount.
The two timing rules: 12 months and 90 days
1. Wait at least 12 months
The effective date must normally be at least 12 months after the tenant first rented the unit or after the last rent increase, whichever is later and applicable. A fixed-term lease does not automatically permit an increase on its anniversary if the statutory timing rule is not met.
2. Give at least 90 days’ written notice
The tenant must receive the proper written notice at least 90 days before the increase takes effect. Build in a buffer. Service by mail is generally deemed effective five days after mailing, while courier service is generally deemed effective the next day. The day you send a notice is not always the legal service date.
How to complete Form N1
- 1
Identify every tenant and the rental unit
Use the tenant names in the tenancy agreement and the complete rental-unit address. A missing tenant can create avoidable uncertainty.
- 2
Enter the landlord’s information
Use the legal landlord name and a reliable address for the landlord.
- 3
State the new rent and effective date
Enter the full new rent, not only the amount of the increase, and choose month, week, or another payment period as appropriate.
- 4
Show the increase clearly
State the dollar increase or percentage and shade the explanation that matches the situation: within the guideline, approved above-guideline increase, or pending above-guideline application.
- 5
Sign and date the notice
The landlord or authorized representative completes the signature section and provides the required contact information.
- 6
Review before service
Recheck the math, lawful-rent amount, 12-month date, 90-day window, tenant names, and selected explanation. Keep a copy of the final form.
Download the current form directly from the Landlord and Tenant Board. Do not rely on an old PDF saved from a previous year.
How to serve Form N1
Use a service method permitted by the LTB rules. Common methods include giving it directly to the tenant, leaving it in the tenant’s mailbox or where mail is ordinarily delivered, mailing it, or using a courier. Do not simply slide it under the unit door; the N1 instructions say that is not an approved method.
Email is not a universal default. Electronic service depends on the applicable LTB rules and the tenant’s consent to service by email. When in doubt, use a clearly permitted method and document it.
When can rent go above 2.1%?
A rent-controlled unit can exceed the guideline only through a lawful exception. A landlord may apply to the LTB for an above-guideline increase for qualifying capital expenditures, extraordinary increases in municipal taxes or charges, or certain security-service costs. An N10 agreement may apply when a landlord and tenant agree to an increase for a new or added service, facility, privilege, accommodation, or capital work, subject to statutory limits and conditions.
Do not treat higher mortgage payments, ordinary inflation, or a desire to match market rent as automatic authority to exceed the guideline. Above-guideline cases have separate forms, evidence, timing, and tenant rights.
2026 landlord checklist
- ✓Confirm the unit is covered by the rent increase guideline.
- ✓Confirm at least 12 months will have passed by the effective date.
- ✓Calculate 2.1% using the current lawful rent.
- ✓Choose an effective date and count back at least 90 days.
- ✓Complete every required N1 field and select the correct explanation.
- ✓Serve every named tenant using a permitted method.
- ✓Keep the completed notice and proof of when and how it was served.
- ✓Update the rent ledger only when the increase legally takes effect.
Frequently asked questions
What is the Ontario rent increase guideline for 2026?+
The guideline is 2.1% for most rent-controlled residential units. It is the maximum increase without LTB approval, not an automatic increase.
Can I raise rent by 2.1% when a fixed-term lease ends?+
Only if the statutory rules are met. At least 12 months must normally have passed since the tenancy began or the last increase, and at least 90 days’ proper written notice is required.
Do I use N1 for a unit first occupied after November 15, 2018?+
Many such units are exempt from the guideline and generally use Form N2, not N1. The exemption is fact-specific, so confirm the unit’s occupancy history.
Can I text or email an N1?+
Do not assume that you can. Email service depends on the applicable rules and consent. Use a permitted method listed in the current N1 instructions and preserve proof of service.
Can a tenant refuse a lawful rent increase?+
A tenant can challenge an increase they believe is improper. If the increase complies with the Act, guideline, timing, form, and service rules, the new lawful rent becomes payable on the effective date.