Average increase of 2.2% in the residential tax bill in Montreal in 2025

In its 2025 budget, tabled on Wednesday, the Plante administration announced a 1.8% tax increase. By adding that of the boroughs, the residential tax bill will increase on average by 2.2% and the non-residential tax bill by 1.9% starting next year.

This 1.8% increase is made up of a 1.4% increase in the general property tax, to which is added a 0.4% increase in the special tax relating to water service.

As it announced last October, the administration contained its 2025 tax increase within the limits of inflation measured in the metropolitan region between August 2023 and August 2024.

A respite which will certainly be appreciated by Montreal taxpayers, who have received average increases of 4.9% in 2023 and 4.1% in 2022.

For a single-family home valued at $720,000, this increase represents approximately $135 more per year in property taxes. The owner of a $485,000 condo will see his bill increase by $38.

Vacant land owners suffer

In a clearly stated desire to encourage owners to use their land more efficientlythe municipal administration announces that it will increase the tax rate on vacant lands served and not served at four times the base rate. The current rate is the equivalent of double the base rate.

Increase in parking fees

The tax rates for the city’s parking lots will be increased by approximately 8% in sectors A, B and C (which correspond to the expanded city center) while they will increase by $0.50 in the rest of the city’s territory.

These changes to taxation in 2025 will yield respectively:

• $69.9 million more in property taxes to the municipal council (+1.8%);
• $15.5 million more in tax revenue for the boroughs;
• $23.6 million more after the increase in taxes on vacant land;
• $8.7 million more in parking tax revenue.

Helping NPOs

Among the measures presented, Mayor Valérie Plante was particularly proud to announce the abolition of compensation required from non-profit organizations (NPOs) which own their building.

By virtue of recognition from the Quebec Municipal Commission (CMQ), they benefit from an exemption from municipal taxes, but compensation was still requested from them by the City to cover part of the municipal services they use. .

From 2025, the NPO owners will no longer have to pay this compensation. The measure will affect a little more than 700 buildings, according to Ms. Plante.

It will cost the City $10.5 million per year to provide this recurring financial support.

Transport, housing, roaming and other missions

The City will also pay an additional $47.2 million next year toARTM to strengthen the financing of public transport, but also to finance the free fares offered to people aged 65 and over across the entire network.

The Plante administration will also devote an additional $45.7 million to housing in Montreal. including 33 million for new measures to support non-market residential development, 6.5 million for the implementation of social housing projects and 6 million for the Low-Rent Housing Renovation Programexplains the City.

Evoking a historical budget for housingMayor Valérie Plante explained that her administration plans to devote $100 million to housing over the next three years.

To combat homelessness, we are increasing the budget by $3 million, bringing the total budget devoted to this social crisis to $10 million.

We will also increase public security spending by $29.2 million.

The borough budgets will receive $24.1 million more in 2025.

Water services will receive an additional $13.6 million. Waste collection and processing will benefit from an additional $9.1 million, and snow removal will receive an increase of $3.9 million.

More than 27 million additional dollars will also be allocated to servicing the City’s gross debt while 12.6 million will be used to finance the deficit of the agglomeration following the results of the 2023 financial year.

All this while respecting the ability of Montrealers to pay and remaining within inflation for taxation. That’s what I’m proud of. We knew how to adapt, find solutions, play with the machine, enlarge the house from the inside.

Remember that since last year, the City has been pursuing efforts to optimize its activities, accompanied by a limitation on hiring, in order to generate operating savings which should reach $29 million in 2025, according to the finance manager. of the City, Luc Rabouin who plans for the long term recurring savings of $200 million.

A final budget for Mayor Plante

Valérie Plante, who today presented her last budget as mayor of Montreal, tabled a balanced financial year of $7.28 billion for the year 2025, up 4% or $282.4 million per year. report to the 2024 financial year. All accompanied by a ten-year capital expenditure program (PDI) of $24.8 billion.

The PDI brings together all the projects and investment programs that the City plans to carry out or undertake over the next 10 years.

Regarding debt management, the municipal administration is continuing its efforts begun in 2015 to reduce its debt ratio to 100% of the City’s revenues by 2027. In 2024, this ratio was 108 %. It is predicted to be 107% in 2025.

The Plante administration claims to continue its cash payment growth strategy which will allow it to pay $475 million this year in payment for capital assets.

For 2025, the gross cost of the City of Montreal’s debt is estimated at just over $1.2 billion. Gross debt service includes repayments of the City’s debt as well as interest and other long-term charges.

The net cost of the debt borne by taxpayers is a little more than $958 million.

38% more since the arrival of Projet Montréal, according to the opposition

On the opposition benches, Ensemble Montréal warned taxpayers to don’t be fooled by this budgetary year.

Citizens have seen their tax bills explode by 38% on average since the arrival of Projet Montréal. They simply no longer have the means to collect more… especially when we see to what extent the catastrophic state of the metropolis is not improvingdenounced the leader of the official opposition and Ensemble Montréal, Aref Salem.

Between the streets transformed into dumpsites, the record calls to Urgences-santé linked to falls on the sidewalks, the growing insecurity, the poorly coordinated construction sites and our infrastructures which are falling into ruins, Montreal taxpayers have many reasons to wonder: where is their money really going?

For the opposition, the hiring of 3,500 more municipal employees under the reign of Projet Montréal, including 36% executives compared to only 1.5% blue-collar workers has not improved the situation in the city either.