What Peterborough’s 2026 Property Tax Hike Really Means if You Own (or Want to Buy) a Home Here…

If you live in Peterborough or you’re thinking about moving here in 2026, you’ve probably heard the whispers:

“Did you see the new budget? Taxes are going up… again.”

Let’s unpack what’s actually happening with the 2026 property tax increase, how big the hit really is, and what it means for current homeowners and future buyers.

First, what did council just do?

Earlier this fall, the City released its Draft 2026 Budget with a proposed 7.43% all-inclusive rate increase (that’s municipal taxes + education tax + sanitary sewer surcharge). For a “typical” residential property, that worked out to about $32 more per month.

After two days of budget deliberations in mid-November, council made changes:

They used an extra $3 million from the city’s Legacy Income Retention reserve (interest from the sale of Peterborough Distribution Inc. to Hydro One).

They deferred several projects (like a public washroom in Jackson Park and some planning studies) to later years.

That trimmed the 2026 all-inclusive rate increase down to 6.56% instead of 7-plus percent.

The final budget is expected to be adopted on December 8, 2025.

So… how much more are we actually talking about?

A local analysis by Arthur looked at the impact on a “median” residential property assessed at $260,000 (that’s the figure the City often uses in its budget examples):

2025 property tax: about $4,576 per year (≈ $381/month)

2026 with the 6.56% increase: about $4,914 per year (≈ $409.50/month)

Difference: roughly $300 more per year, or about $28–29 more per month

In other words, for that median-assessed home:

2026 = about a 7.5% bump in the actual dollars you pay, even though the “all-inclusive rate” increase being quoted is 6.56%.

Different outlets peg the annual increase for that median property at $300–$340/year depending on how they round, but the big-picture takeaway is the same:
Plan on roughly an extra $25–30/month in 2026 for a typical Peterborough home.

Why are property taxes going up?

This isn’t just “because they felt like it.” The budget is being pulled in a few big directions at once.

From the City’s own budget presentation and local coverage, here’s what’s driving the increase:

Operating budget pressures:

The City is targeting around a 2%+ increase to the operating budget just to maintain services (roads, snow clearing, rec facilities, transit, etc.).

Infrastructure & capital projects:

Roughly another 2%+ is for infrastructure and capital – things like police station renovations and expansion Lansdowne Street West improvements, wastewater treatment plant revitalization, airport taxiway extension, road paving and transit buses.

Sanitary sewer surcharge:

About 0.53% of the increase is tied to the sanitary sewer fee.

External agencies:

Another ~1.7–1.8% relates to organizations funded by the City – like police, social services, and other boards and agencies.

Council kept the 2026 hike to 6.56% partly by raiding reserves (that $3M Legacy Fund interest) and pushing some projects into 2027. That’s why Mayor Jeff Leal has already warned that 2027 could be “tough sledding” if the structural issues (revenue base + operating costs) aren’t addressed.

The weird wrinkle: your tax bill is still based on 2016 values

Here’s the part almost nobody outside real estate and municipal finance talks about:

MPAC (Municipal Property Assessment Corporation) hasn’t done a province-wide reassessment since 2016.

Because the province postponed the scheduled update, property taxes for 2026 are still based on January 1, 2016 market values.

So:

Your assessment value on your tax bill is not what your home would sell for today.

In many neighbourhoods, market values have jumped way more than assessments, which means some properties are almost certainly under-taxed relative to others.

Practically, that means:

The percentage increase (6.56%) is applied to an old assessed number.

So your tax dollar amount might feel moderate compared to GTA cities, but you’re paying that on a 2016 “snapshot” of your home, not 2025–26 reality.

If you’re already a homeowner in Peterborough
1. Expect your monthly carrying costs to bump up

If your mortgage payment includes property tax in the escrow/“pay with mortgage” option, your lender may adjust your payment once the new 2026 tax bill is known.

Rough ballpark for many city homes:

Plan for an extra $25–50/month depending on your assessment and location.

If your home is assessed above that $260K “median” (many are), your increase will likely be higher in dollar terms, even though the percentage is the same.

2. Landlords: this hits your cash flow

If you own a rental or student property in the city: Property taxes are one of your biggest operating expenses.

A 6.56% jump on the tax side can easily wipe out a chunk of your annual profit if you don’t adjust rents over time (within the rules) or sharpen your other expenses. It doesn’t mean Peterborough stops working as an investment market – but your spreadsheet needs updating.

3. Fixed-income owners need to proactively budget

Retirees or anyone on fixed incomes should:

Look at last year’s final tax bill. Add roughly 7% to the “total taxes” line as a conservative estimate for 2026. Decide now where that extra $25–40/month will come from (cutting a non-essential, pausing a subscription, etc.) instead of letting it surprise you in June.

4. You can still question your assessment

Because assessments are frozen at 2016 values, some owners are actually over-assessed relative to market value, which means they may be overpaying on taxes. MPAC notes you can challenge your assessment if you believe it’s too high.

That doesn’t change the tax rate, but if your assessed value is corrected downward, your tax bill shrinks too.

If you’re planning to buy in Peterborough in 2026

1. Don’t just look at the mortgage payment. When you’re comparing Peterborough to, say, Durham or the GTA, it’s easy to focus on just:

“What’s my mortgage payment if I buy at $X vs $Y?”

But your true monthly cost also includes:

Property tax, Utilities (especially in rural or electric-heat homes), Insurance, Maintenance / upgrades. On a typical city home, that extra $25–30/month in taxes doesn’t make or break the deal by itself…but it does matter when you’re right at your pre-approval limit.

2. Build property tax into your affordability math

When you’re running scenarios:

Take the assessed value (from the listing or MPAC), divide by $100,000, then multiply by the “per 100K” impact if you want a quick-and-dirty estimate.

As a rough comparison point, Peterborough County (for properties outside the City in townships like Douro-Dummer, Selwyn, etc.) just approved a 2026 budget where the levy translates to about a 3.93% tax rate increase, or roughly $17.35 per $100,000 of residential assessment. City vs County taxes used to be a huge gap; now it’s more nuanced and depends on the specific township and services.

3. Use the tax hike to your advantage as a buyer

Higher carrying costs can:

Nudge some would-be sellers to list (if they’re stretched).

Make buyers a bit more cautious.

If you’re well-qualified and budget-savvy, you can absolutely:

Negotiate more confidently, especially on homes that have been sitting. Ask for utilities + tax bill history as part of your due diligence, not just pretty photos and staging.

Big picture: Does this make Peterborough “too expensive”?

Short answer: no – but it does mean you need to be more intentional.

Even with a 6.56% tax hike:

Peterborough’s total cost of ownership (purchase price + taxes + living costs) still undercuts many GTA communities, especially for detached homes with actual yards.

What’s shifting is the pressure on the City’s budget and the warning from the Mayor that using reserves is a short-term band-aid. There could be more difficult choices (or higher increases) in 2027 and beyond if the structural issues aren’t fixed.

So if you’re buying:

Focus on homes that work for you long-term (so you’re not forced to move again in a few years if costs rise).

Make sure the full monthly number – including property tax at 2026 levels – fits comfortably, not just on paper.

How to turn this into action (not anxiety)…Whether you’re already here or planning your move:Pull your 2025 tax bill, Add ~7% to the “Total taxes” line to get a rough 2026 number.

If you’re buying, run full scenarios

Ask your lender to model principal + interest + taxes + heat at today’s rates, not just the bare mortgage payment.

If you’re investing, update your pro forma. Treat 6.56% as your new baseline, and stress test your numbers another 5–10% above that for future years.

Stay plugged in. The City’s budget page has the full documents, timelines, and updates if you want to nerd out on the details or speak at future consultation. 

Ready to see what this actually looks like for your house or future move? If you’re a numbers person (or you’re trying really hard to be one), you don’t have to guess.

Here’s what I can do for you:

Run a “Real Cost of Owning in Peterborough 2026” breakdown for your specific property or the homes you’re eyeing.

Compare city vs. county vs. nearby townships so you can see where your money actually goes.

Help you decide whether it makes more sense to stay put, move up, downsize, or buy that first place.

No pressure, no sales pitch — just real talk, real numbers, and a plan that feels good.

Email me: carrie.brockhurst@century21.ca

Call/text: 289-200-5444