2024 budget: Montreal residential property taxes increasing 4.9%, commercial property taxes 4.6%

The City of Montreal unveiled its 2024 budget on Wednesday morning, announcing a residential property tax increase of 4.9 per cent – the highest the city has seen in 13 years.

Commercial building owners will also see their property taxes increase by 4.6 per cent. That represents commercial property taxes reaching 14.3 per cent in the Lachine borough and 12.1 per cent in Ville Saint-Laurent.

The City of Montreal had promised to keep the tax increase below the current inflation rate of 5.2 per cent. 

“It’s tough for Montrealers, we hear it. At city council, people tell us it’s difficult.  What we want the most possible is to support them during this difficult time,” said Montreal mayor Valérie Plante while presenting the budget Wednesday.

The highest increase of residential property taxes is in Pierrefonds-Roxboro at 7.2 per cent, with Anjou behind it at 6.3. Mercier—Hochelaga-Maisonneuve at 5.8 per cent and Côte-des-Neiges—Notre-Dame-de-Grâce at 5.5 per cent.

The lowest residential property tax increase is in the Ville-Marie borough at 2.6 per cent. The boroughs set their own local taxes.

The property tax increase represents about $227 per residential household.

63.8 per cent of the city’s total revenue will come from taxes. 

“We have a clear vision, we’re looking to the future, we’re projecting, but at the same time we absolutely want to continue to offer quality service. It’s our fundamental vision,” mayor Plante added Wednesday.

The budget represents total spending of just under $7 billion – 3.5 per cent higher than last year’s budget. The mayor of Montreal called it a “safe and responsible budget”.

The spending breakdown includes:

• 18.3 per cent for public security
• 16.6 for debt services
• 11.1 per cent for administration
• 10.3 per cent for culture and leisure
• 10.2 per cent for public transit
• 7.2 per cent for cash payment for fixed assets
• 6.1 per cent for the road network
• 4.1 per cent for urban planning, development, and economic development
• 3.7 per cent for waste collection, disposal and environment
• 3.2 per cent for social housing
• 2.8 per cent for snow removal
• 2 per cent for corporate expenses

“I do understand that this is very difficult economic context for Montrealers, they’re being hit by inflation hard and the city is as well,” said Plante. “This is what this raise of taxes is connected to. It’s connected to the inflation hitting the city but we want to keep on offering the best services.”

The budget also includes a ten-year 2024-2033 capital expenditure program of $23.9 billion, which the mayor says plans for the “priorities and ambitions” of the city.

This includes 28.8 per cent for the environment and underground infrastructures, 26.7 per cent for roads, 19.3 per cent for buildings and land, 16.1 per cent for parks and green spaces, and more.

Ensemble Montreal, the official opposition party at City Hall, reacted to the budget saying it hurts the middle class and is out of touch with the needs of Montrealers.

“This 2024 budget is the image of an administration cloistered in its ivory tower, while Montrealers can no longer afford housing, transportation or groceries,” says Alan DeSousa, finance spokesperson for the Official Opposition and mayor of Ville Saint-Laurent.

“The 2024 budget shows that the administration in power is not the party close to citizens and attentive to their needs that it claims to be. The tax increases are not intended to improve the quality of life of Montrealers, but rather to finance their spending party,” added Aref Salem, the leader of the Official Opposition at Montreal City Hall.