Montreal to cap property tax increases at 1.8% in 2025

After residential taxes increased nearly10 per cent over the past two years, Montrealers and their walletsare finally getting a break.

A year before the next municipal election, the Plante administration saidit will limit the centre city'sproperty tax increases to 1.8 per cent for homeowners and businesses in its 2025 budget.

The city said people are struggling financially, so it worked diligently to keep its promise to hold the tax increase within the rate of inflation and announced this intention earlier than usual.

"We want to assure the population becausepeopleare stressed,"the head of the city's executive committee, Luc Rabouin, said at a news conferenceThursday.

"There's been an increase in the cost of living over the past few years, an increase in rental costs, an increase in the cost of groceries so we want to tell them right away,'don't worry.'"

This increase, in line with inflation in the Montreal region between August 2023 and August 2024, should be a relief for Montreal homeowners who saw their tax bills increase4.9 per centin 2024and 4.1 per centin 2023, in addition to a significant rise in the cost of living.

Rabouin sayshis administration's efforts to reduce spending, revise programs and increase efficiency have made it possible to keep the increase in Montrealers' tax bills within the limits of inflation.

He refused to say what cuts weremade to make this possible,saying the city will have more details when it announces its 2025 budget at the end of November.

City asks boroughs to also hold line on inflation

The city's share of the property tax bill makes up 87 per centof the total, said Rabouin. Boroughs set their own tax rates, which are expected to be announced in the coming weeks, but mostly rely on money transfers from the city for funding.

Rabouin said the city will be transferring 1.8 per cent of tax revenue to the boroughs, which should"facilitate their decisions" to also hold the line on inflation.

"Of course, we all have a challenge to offer quality services to the population but[also] to respect their capacity to pay," he said.

"So we madethe effort at the city level and all the boroughs [also have to] make the effort."

VilleraySaint-MichelParc-Extension has already mapped out its plan for taxes, announcing an increase in local tax revenue of three per cent.

Rabouincalled out boroughs such asMontral-Nord, Anjou andSaint-Lonard, which already have some of the highest property taxes in Montreal.

"I could not understand if they increase their local taxes more than fiveper cent. It's just not comprehensible," he said.

'Trying to put lipstick on a pig,' says Opposition

At the same news conference Thursday morning, Saint-Laurent borough mayor and OfficialOpposition financecriticAlan DeSousatook no time ripping into the city's plan.

"We all know that there's an election in a year, and clearly they're trying to put lipstick on a pig," he said.

DeSousaaccusedthe administration of not giving boroughs enough to keep taxes low andmaking choices that "clearly have an electoral bend."

"If the boroughs are increasing[taxes], it's because they are clearly wanting to not cut into essential services," he said.

With almost $9out of every $10 paid in property taxes going to the city's central authority,DeSousasays the city is "looking in the wrong place for expenses."

"They're not doing anything in regard to excessive spending or waste happening at the city level," he said, saying the city has systematically not just increased expenses, but also taxes.

Rabouin said the Opposition's accusations are paradoxical to their demands.

"They're always asking us to spend moreand they criticize us when we spend money," he said.

He said the city is focused on the priorities of citizens and will maintain services despite limiting the money it collects through taxes next year.