Hamilton’s proposed 2026 budget includes 4.25% residential tax hike

Hamilton Mayor Andrea Horwath unveiled her pitch for the city’s 2026 budget Tuesday, calling it a “hold-the-line” budget that sticks to her initial promise of a lower-than-usual tax increase while maintaining essential services.

“Hamiltonians were very clear,” Horwath said during a press conference at city hall. “They told us affordability was top of mind. They told us core services must be protected. They told us we need to keep investing in infrastructure, but at a more realistic pace.”

During budget preparations in the fall, the mayor asked city staff to keep the residential tax increase at or below 4.25 per cent.

In December, staff came back with a budget that included a 5.5 per cent jump, saying part of that number represents the Hamilton Police Services Board’s ask of a 6.8 per cent increase compared to last year.

But Horwath says she asked staff to sharpen their pencils once again.

This latest proposal goes back to that original 4.25 per cent hike. If approved, the average Hamilton household would see its property tax bill rise by about $225 this year. That’s on top of an average water rate bill increase of $77.

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The mayor wouldn’t spell out where the changes came from that knocked the tax rate down from 5.5 to 4.25 per cent — just saying it’s from a combination of cuts, pulling from other revenue streams, and delaying projects.

“Looking at if there are investments that need to be made now or should they maybe be postponed until next year, the year after,” Horwath said.

If passed by council, 4.25 per cent will be the lowest tax hike of Horwath’s term as mayor — and it comes right as she’s up for re-election in October. However, she tells CHCH News that her push for affordability has nothing to do with votes.

“Not at all,” Horwath said. “In fact, what this does is reflect what people told us from those who engaged with us on budget discussions back in the fall.”

City staff will present the numbers in detail to councillors at a public meeting this Friday.

From there, councillors will have 30 days to propose changes before voting to accept or reject the budget.

Final adoption is expected in February or March.

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