Several municipalities in Québec are filing their new property assessment rolls for 2026, and the initial data show significant increases in many cities.
These increases will have a direct impact on municipal and school taxes, and therefore on rents.
Significant increases in property values across many cities
The new assessment rolls show a notable rise in the value of residential and rental buildings.
These increases reflect:
the strong growth of the real estate market in recent years,
the mandatory three‑year adjustment required under the Act Respecting Municipal Taxation,
the municipalities’ intention to align assessed values more closely with actual market value.
For property owners, this means an automatic increase in the taxation base.
The higher the assessed value, the higher the taxes.
For property owners, this means an automatic increase in the taxation base.
The higher the assessed value, the higher the taxes.
For rental buildings: These increases are transferable to tenants
The method applied by the Administrative Housing Tribunal (TAL) provides for the allocation of the variation in the tax bill for municipal and school taxes.
The APQ emphasizes that this is not a matter of choice or profit, but the mechanical pass‑through of an expense imposed by the municipality.
Financial pressure added to other rising costs
The increase in assessed property values comes at a time when owners are already facing a difficult financial environment:
- rising insurance premiums,
- new Building Code standards,
- higher construction costs,
- more expensive maintenance.
For many buildings, expenses are rising faster than the monthly rent increases authorized by the TAL.
A reality often misunderstood by the public
The APQ notes that landlords are often perceived as responsible for rent increases, whereas in this case:
- it is the municipalities that increase assessed property values,
- it is the municipalities that increase taxes,
- and the TAL requires these amounts to be passed on.
The landlord becomes an involuntary tax intermediary between the city and the tenant.
Conclusion
The new property assessment roll will lead to higher municipal and school taxes in several Québec municipalities.
For sound management, these increases must be passed on to tenants as part of the authorized rent adjustments.
For property owners, this represents additional financial pressure in a context where maintenance, construction, and insurance costs are already rising sharply.