Montreal unveiled its first budget under Mayor Soraya Martinez Ferrada on Monday, January 12, 2026, charting a new fiscal course with increased property taxes and significant investments to address pressing urban challenges. The $7.67-billion budget represents a 5.4% rise in city expenses, signaling a shift in priorities for the new administration.
Tax Increases and Impact on Homeowners
The budget introduces an average residential property tax increase of 3.8%, a jump from the previous year's 2.2% hike. For the average Montreal home, now valued at $791,135, this translates to an extra $188 per year. The burden varies by housing type and borough. Single-family homes will see an average increase of $204, compared to $108 for condos and $190 for plexes.
Taxpayers in Île-Bizard–Sainte-Geneviève face the steepest rise at 6.3%, followed by Riviere-des-Prairies—Pointe-aux-Trembles (5.6%) and Verdun (5.4%). Residents of Côte-des-Neiges–Notre-Dame-de-Grâce will see the smallest increase at 1.9%. For commercial properties, the average tax bill will rise 3.4%, with Lachine businesses hit hardest by a 12% hike.
Strategic Spending: Homelessness, Security, and Downtown Revitalization
Mayor Martinez Ferrada emphasized that the budget reflects her administration's core commitments, with a pronounced focus on social issues and urban renewal. The largest spending portions are allocated to public security (17.9%) and debt servicing (16.6%).
A cornerstone of the new spending is a major push to combat homelessness. The city is injecting an additional $20 million into community organizations that work directly with unhoused individuals, plus $11 million for poverty reduction. Total funding for shelters and community groups now nears $30 million, triple the amount from the previous year.
Public security initiatives receive $17.4 million for improving safety around schools and $15.8 million for youth violence prevention. Revitalizing the downtown core is another key priority, with $14.7 million earmarked for 2026 alone to improve cleanliness, promote the underground city network, and support local businesses.
Long-Term Vision: The 10-Year Capital Plan
Alongside the operating budget, the city presented a $25.9 billion, 10-year capital works program for major infrastructure projects. This long-term plan includes $1 billion for downtown projects, half of which is dedicated to renovating Ste-Catherine Street.
Other significant capital investments include $1.6 billion for the "Vision Zero" road safety plan aiming for zero traffic deaths by 2040, $578 million to acquire buildings for affordable and social housing, and $100 million specifically for future homeless shelters. An additional $40 million is set aside to equip police officers with body cameras.
To manage increased spending, the city plans to save $79 million annually through departmental reviews, cutting 1,000 positions, and a partial hiring freeze. Major cost drivers include an $87 million increase in debt servicing and an extra $45.6 million payment to the regional transit authority.
