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Home » Brampton » Homeowners Brace for 73% Tax Increase in Caledon
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Brampton

Homeowners Brace for 73% Tax Increase in Caledon

February 4, 20263 Mins Read
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Homeowners Brace for 73% Tax Increase in Caledon
Tax hike over 70% blamed on province 'downloading' road services in Ontario town
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Residents in Caledon are facing a staggering 73 per cent tax increase to manage the $80 million yearly costs of “downloading” road services from the Region of Peel, according to town officials.

Residents in Caledon are facing a staggering 73 per cent tax increase to manage the $80 million yearly costs of “downloading” road services from the Region of Peel, according to town officials.

This tax increase stems from the province’s modified decision to dismantle Peel and create separate municipalities for Mississauga, Brampton, and Caledon in 2023.

The province later adjusted that plan to maintain the region as is while shifting service responsibilities onto the three municipalities, which include regional land use and planning, water and wastewater services, regional roads, and waste management.

However, the town claims that just transferring regional road responsibilities will cost $80 million annually. Mayor Annette Groves described this shift as “both impossible and unfair.”

“Based on conservative estimates first identified in a 2023 report, this would amount to approximately a 73 (per cent) tax increase per household annually,” the town stated in a release.

RELATED: Over $300 property tax hike could be coming for Brampton homeowners

Screenshot 2026 01 30 at 1.55.02 PM

A financial review by Watson & Associates Economists highlighted these new costs at $80M for residents-a figure similar to what they found during their analysis for the Region of Peel,” said town officials.

Any tax rise approved by Caledon would add on top of the Region of Peel’s budget for 2026, which already includes an increase exceeding $200 for residential properties across Mississauga, Brampton, and Caledon.

Brampton’s budget proposes a property tax hike of 1.5 percent or about $111 added to average residential bills in 2026.

New waste pick-up programs managed by municipalities were supposed to start in 2026 but have now been delayed by more than a year. The province has also changed recycling services throughout Ontario; Circular Materials will handle blue bin pick-ups going forward.

Back in 2024, Janice Baker, former Chief Administrative Officer of Peel Region expressed doubts about whether moving services to municipalities would save money. Meanwhile, Brampton Mayor Patrick Brown compared this restructuring to a “financial train wreck” expected to cost his city around $1.31 billion.

Caledon Coun. Doug Maskell mentioned that residents are “being forced to incur costs in preparation for the downloading of road services,” urging provincial leaders “to identify funding sources for this service and for our local MPP to advocate for an effective funding strategy for Caledon.”

All three municipalities within Peel have requested provincial support covering these downloading costs but so far there have been no commitments made.

“Caledon looks to the province to deliver concrete funding solutions that guarantee a fiscally responsible, transparent transition and ensure local taxpayers are not left carrying the cost,” stated town officials in their release.

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