The Toronto rain tax is a proposed stormwater charge that would have billed property owners based on how much hard surface (rooftops, driveways, parking lots) sits on their land rather than how much tap water flows through their meter. Toronto City Council voted on February 5, 2025, to indefinitely suspend all work on the proposal.1City of Toronto. Agenda Item History – 2025.EX20.12 The charge is not in effect, no implementation date exists, and Toronto residents are not currently paying it.
What the Proposed Charge Actually Was
Toronto currently bundles stormwater costs into the water rate every resident and business already pays, and that rate is tied to metered consumption. A homeowner running the dishwasher ends up subsidizing drainage infrastructure more than a big-box store with an acre of parking lot and almost no water use.2City of Toronto. Stormwater Charge and Water Service Charge Consultation A standalone stormwater charge flips that logic. The property sending the most rainwater into the sewer system pays the most to maintain it.
The fee would have been calculated from impervious surface area: any hard surface that stops rain from soaking into the ground. City staff used a GIS analysis based on aerial photography to measure hard and soft surface areas across every parcel in Toronto.3City of Toronto. Proposed Stormwater Charge – Results of Consultation
The financial pressure behind the idea is significant. In 2025, Toronto Water updated its cost estimate for the Basement Flooding Protection Program alone to roughly $22 billion in infrastructure improvements, up from a previous $18 billion estimate.4City of Toronto. 2026 Capital Budget Briefing Note – Basement Flooding Protection Program The consumption-based water rate was never designed to generate that kind of revenue.
Do You Have to Pay It?
No. On February 5, 2025, City Council directed the General Manager of Toronto Water and the Chief Financial Officer to indefinitely suspend all further consideration and engagement on both the stormwater charge and a related water service charge.1City of Toronto. Agenda Item History – 2025.EX20.12 Council cited feedback from stakeholder engagement, previous public consultations, and stormwater-reduction actions already underway through other programs.
“Indefinitely suspend” is stronger than “pause” or “defer.” There is no timeline for revisiting the charge, and no active staff work on implementation. The existing water rate remains the only mechanism funding stormwater management in Toronto for the foreseeable future.
The $22 billion infrastructure gap does not disappear because the fee was shelved.4City of Toronto. 2026 Capital Budget Briefing Note – Basement Flooding Protection Program A future council could reopen the conversation, and the aerial mapping and consultation work already done would give staff a head start. For now, Toronto property owners are not being billed and are not being asked to prepare for one.
How a Bill Would Have Been Calculated
Residential Properties
Homeowners would have been placed into tiers based on building footprint, which staff found to be a reliable predictor of total hard surface area. Smaller homes with less pavement would fall into a lower tier; larger homes with more impervious coverage would pay more. Toronto never published final fee amounts before the proposal was suspended, so exact dollar figures for Toronto residents remain unknown.
Commercial and Industrial Properties
Non-residential properties would have been assessed individually rather than grouped into tiers. The total hard surface area on the parcel would be measured and divided by a standard billing unit to produce a tailored fee. A small retail building with limited parking might pay a few hundred dollars a year, while a distribution centre with vast paved yards could face thousands.
Who Would Have Been Billed
One feature that sets a stormwater user fee apart from a property tax is that it can reach properties normally exempt from taxation. Churches, non-profit organizations, and government buildings all have rooftops and parking lots that channel rainwater into municipal sewers. Under the proposed framework, any property with impervious surfaces would receive a bill regardless of tax-exempt status.2City of Toronto. Stormwater Charge and Water Service Charge Consultation Properties without a water meter or traditional water account would also be subject to the fee, since it is tied to runoff rather than consumption.
That broader reach is part of what made the proposal controversial. Charities and houses of worship that have historically paid nothing toward drainage would have faced new costs, and Toronto’s proposal had not resolved potential exemptions for those groups before work stopped.
Credits That Would Have Lowered a Bill
Toronto’s staff report proposed a credit program primarily aimed at large, non-residential properties that install stormwater best management practices.3City of Toronto. Proposed Stormwater Charge – Results of Consultation The details were never finalized. In Mississauga, non-residential and multi-residential owners can earn credits of up to 50% off their stormwater charge across four categories: peak flow reduction, water quality treatment, runoff volume reduction, and operations and activities such as sustainable landscaping and salt management.5City of Mississauga. Stormwater Credit Application Guide Credits there last five years and can be renewed. If Toronto revives its charge, a similar framework would give property owners a financial incentive to install rain gardens, permeable pavement, or green roofs.
What Other Ontario Cities Already Charge
Toronto would not be pioneering anything if the charge returns. Several Ontario municipalities already bill separately for stormwater, which gives Toronto homeowners a reasonable preview.
Mississauga charges residential properties on a five-tier system based on rooftop area. The 2026 annual fees range from $64.45 for the smallest freehold townhomes to $219.13 for the largest detached homes. Properties with almost no impervious area (under 26.7 square metres) pay nothing. The 2026 non-residential rate is $128.90 per billing unit of 267 square metres of impervious area, so a property with 2,000 square metres of hard surface would pay roughly $966 annually.6City of Mississauga. Schedule B-4 Stormwater Fees and Charges Effective April 1, 2026
Kitchener charges monthly rather than annually. In 2026, a small detached home pays $13.92 per month, a medium home pays $23.24, and a large home pays $30.54. Townhouse or semi-detached units pay $16.58 per month, and residential condos pay $9.24 per unit.7City of Kitchener. Stormwater Utility
Brampton uses a tiered residential system as well. Properties in the largest tier are projected to pay about $174.71 in stormwater fees for 2026.8City of Brampton. Stormwater Charge
Kitchener’s monthly charges work out to $167 to $366 per year for detached homes, and Mississauga’s residential fees top out at $219. Toronto’s larger infrastructure deficit could push fees higher if a future council revisits the idea, but the residential tier structure would likely follow a similar model.