2026 Rent Increase Calculator — the TAT method
Estimate the allowable rent increase in 2026 under the Administrative Housing Tribunal's new method: a base indexation of 3.1%, the change in taxes and insurance, and the recovery of major work. Built for plex and multi-unit owners on Montreal's North Shore.
Quick answer
In 2026, the base rent indexation in Quebec is 3.1% under the TAT method (Administrative Housing Tribunal). This percentage is neither a ceiling nor a floor — it is negotiated between landlord and tenant. Added to this rate are the actual change in taxes, insurance and the recovery of major work (5% per year over 20 years, spread across the units). For units with services, the services portion is indexed at 6.7%.
Indicative estimate — see the disclaimer.
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Since January 1, 2026, Quebec calculates rent increases differently. Stemming from the Regulation respecting the criteria for fixing rent, this is the first overhaul in more than 40 years: a single base indexation rate of 3.1%, to which are added the actual change in taxes, insurance and the recovery of major work. This guide demystifies each component — with a worked example — for plex and multi-unit owners.
How the new 2026 method works
Since January 1, 2026, Quebec applies a new way of calculating rent increases. Stemming from the Regulation respecting the criteria for fixing rent, it is the first overhaul of the method in more than 40 years. It applies to all lease modification notices given on or after January 1, 2026. The goal: make the calculation more legible for landlords and tenants alike.
At the heart of the method is a single base indexation rate. For leases whose renewal begins between April 2, 2026 and April 1, 2027, this rate is 3.1% — the three-year average of Quebec's Consumer Price Index (CPI). This 3.1% is applied to the current monthly rent.
Simplified 2026 formula
Increase = (Rent × 3.1%) + Taxes + Insurance + Major work
The "Taxes", "Insurance" and "Major work" components are spread across the building's units, then brought down to a monthly figure. See the details below.
Taxes, insurance and major work (5% / 20 years)
Beyond the base indexation, three actual components are added. They reflect the cost increases genuinely borne by the building — not flat-rate estimates.
- Change in municipal taxes: the difference in dollars between this year's municipal bill and the previous year's, for the whole building.
- Change in school taxes: same principle, on the school tax account.
- Change in the insurance premium: the actual increase (or decrease) in the building's insurance premium.
Each of these amounts concerns the entire building. It is therefore spread across the number of units, then brought down to a monthly figure (divided by 12). A fourplex whose taxes rise by $800 spreads that increase over 4 units and 12 months.
Major work — in other words, capital expenditures — follows a distinct rule. It is not recovered all at once, but amortized at 5% per year over 20 years. This notably covers:
- Roof or foundation repair;
- Window replacement;
- Kitchen or bathroom renovation;
- Heating system upgrade;
- Installation of an EV charging station.
Recovery of major work
Annual share = Cost of work × 5%
Example: $30,000 of work → $1,500 recoverable in the first year, spread across the units then brought down to a monthly figure.
Worked numerical example — North Shore 6-plex
Take a 6-plex in Mirabel with a unit renting for $1,200 / month. Over the year, the building's municipal taxes rose by $900, school taxes by $150 and the insurance premium by $600. The owner also redid the roof for $30,000.
Total increase: + $80.95 / month, or + 6.75% or + $971.40 over the year. This result matches the calculator above exactly.
3.1% = a negotiable reference (neither floor nor ceiling)
This is the most misunderstood point of the reform: the 3.1% is neither a guaranteed minimum nor an imposed maximum. It is a reference that serves as a basis for discussion. The landlord proposes an increase in the modification notice; the tenant can accept it, refuse it or negotiate.
If the tenant refuses and the parties do not agree, the Administrative Housing Tribunal decides, using its own calculation tool. An increase can therefore be lower than 3.1% (a building whose costs fall) or higher (significant taxes and work). The percentage publicized each year remains a benchmark, not an automatic rule.
Units with services: 6.7% on the services portion
Units that include services — typically private seniors' residences (RPA) with meals, care or activities — follow a two-step logic. The housing portion of the rent is indexed at the 3.1% base rate. The services-related portion can be adjusted up to 6.7%, a separate rate set out in the regulation.
When and how to send the modification notice
The increase only takes effect at the lease renewal, and only if the notice was sent within the deadlines. The rule: the lease modification notice must be given 3 to 6 months before the end of the lease (or before the renewal date for a lease longer than 12 months).
- Lease ending June 30: notice to be sent between January 1 and March 31.
- The notice must state the proposed new rent and, where applicable, the other changes.
- The tenant then has one month to refuse; without a reply, the lease is renewed under the new terms.
A late or incomplete notice can void the increase for the current year. Better to prepare the calculation early — that is exactly what this tool is for.
This guide is provided for informational purposes only and does not constitute legal advice. Source: Administrative Housing Tribunal (tal.gouv.qc.ca). The official calculation falls to the TAT. Last updated: June 2026.
2026 rent increase — your questions
The base indexation rate is 3.1%. It corresponds to the 3-year average of Quebec's CPI for leases whose renewal begins between April 2, 2026 and April 1, 2027. Added to this rate are the actual change in municipal and school taxes, insurance premiums and the recovery of major work.
No. The 3.1% is a reference: neither a floor nor a ceiling. It is a starting point negotiated between the landlord and the tenant. In the event of a disagreement, the Administrative Housing Tribunal (TAT) sets the increase.
In effect since January 1, 2026, the Regulation respecting the criteria for fixing rent is the first overhaul in more than 40 years. The method now rests on a single base indexation rate (3.1% for 2026-2027), to which are added the change in taxes, insurance and the recovery of major work. It applies to lease modification notices given on or after January 1, 2026.
Capital expenditures (roof, foundation, windows, kitchen or bathroom renovation, heating upgrade, EV charging station) are recovered at a fixed rate of 5% per year, i.e. amortized over 20 years. The amount is spread across the building's units, then brought down to a monthly figure.
For units with services (for example in a private seniors' residence), a separate rate of 6.7% applies to the portion of the rent tied to services. The housing portion itself follows the 3.1% base indexation rate.
The lease modification notice must be sent 3 to 6 months before the lease renewal date. For a lease ending June 30, the notice is therefore sent between January 1 and March 31.
No. It is an estimate for guidance only. The official, binding calculation falls to the Administrative Housing Tribunal's tool and, in the event of a disagreement, to a decision of the Tribunal. Always validate with the official TAT tool.
Three actual components are added to the 3.1%: the change in municipal taxes, the change in school taxes and the change in the building's insurance premiums. The recovery of major work at 5% per year is also added. Each amount is spread per unit and brought down to a monthly figure.