If you’ve walked past Hamilton City Hall lately, the air feels a bit different. It’s not just the January chill. There is a genuine sense of tension brewing inside those limestone walls that is going to hit your wallet by springtime. Honestly, if you aren't paying attention to the 2026 budget deliberations happening right now, you might be in for a nasty shock when your property tax bill arrives.
The city just dropped a draft budget that suggests a 5.5% residential tax increase.
That is not a small number. For the average homeowner, we are talking about an extra $293 a year. This isn't just about inflation or "the cost of doing business." It is a reflection of a city trying to reinvent itself while the foundation—specifically housing and transit—is under massive pressure. Mayor Andrea Horwath is catching some heat for this, especially since she previously directed staff to aim for a 4.25% cap.
But here’s the thing: the math just isn’t mathing for that lower number.
Why the 2026 Budget is a Balancing Act
The city's net tax levy is sitting at a staggering $1.33 billion. That is an $86.5 million jump from last year. If you look at the trajectory since 2022, the tax levy has increased by nearly 34% in just four years. That is wild.
Why is it so high?
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- Police Funding: A $15.2 million increase for the Hamilton Police Service is a major driver.
- Employee Costs: Staffing a city isn't cheap. Employee-related costs have surged to $1.12 billion.
- Infrastructure: We’ve got aging pipes and roads that won't fix themselves.
- The Cyber Recovery: The city is still dealing with the fallout and "cyber recovery" costs from previous digital disruptions.
It’s easy to get angry at the 5.5% figure, but the city claims it’s actually a 7% increase that they've managed to buy down by shifting 1.5% of the burden onto industrial and commercial sectors. Whether that makes you feel better or worse probably depends on if you own a small business in the Hammer.
The Housing "Depression" and the 70 Hope Street Plan
If you check the Planning Committee’s latest agenda, there’s a phrase being tossed around by local observers like Joey Coleman that should worry everyone: "economic depression in new housing development." There isn't a single new private housing unit being considered for approval in the most recent committee rounds. That is a terrifying statistic for a city that is supposed to be "building faster."
Instead, the city is looking at its own backyard. There is a big push to rezone the municipal parking lot at 70 Hope Avenue. They want to turn it into about 50 units of low-rise or stacked townhomes. It’s a smart move in theory—it's close to transit and keeps the density where it belongs—but it highlights a bigger problem. Private developers are sitting on their hands because the numbers don't work right now.
Breaking the "Radial Separation" Rule
In a move that’s been years in the making, Hamilton is finally ditching the "radial separation" rule for residential care facilities (RCFs). For decades, you couldn't open a new care facility within 300 metres of an existing one. It was a rule that many argued—including the Ontario Human Rights Commission—was discriminatory and blocked social services from being where they were needed most.
Now, the city is allowing RCFs to be co-located with social services in high-density zones like the Transit Oriented Corridor (TOC1). This is a huge win for social equity, but it’s also a pragmatic response to the homelessness crisis.
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Speaking of homelessness, the "tiny homes" project for unhoused people has been a rare bright spot. Since Feb 2025, it’s seen 101 residents and helped 17 people find permanent housing. The city is also expecting $750,000 in federal funding specifically to help the 24 veterans currently living on Hamilton streets without a roof.
Transit: FlixBus and the Ghost of Greyhound
Remember Greyhound? Its departure in 2021 left a massive hole in how people get around Ontario. Well, FlixBus is currently in talks with the city to start using HSR bus stops.
This is kind of a big deal.
Instead of having to trek to a specific terminal, you might soon be able to catch a bus to Toronto or London directly from an HSR stop. It’s about "filling the gaps," and it’s a much more efficient use of the infrastructure we already have.
Meanwhile, the Hamilton LRT and the Confederation GO Station projects are still the "big ticket" items. Construction on the Dundas Street rapid bus corridor is slated to start this year (2026), but don't hold your breath for the ribbon-cutting—the full corridor probably won't be finished until the early 2030s.
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Safety and the "Retro Wardrobe" Closing
It’s not all policy and budgets. On the ground, Hamiltonians are feeling a shift in safety. A local staple, Retro Wardrobe, recently announced it's closing its doors. The owner, Isobella Evans, basically said she’s fed up. Between break-ins and "anti-social behavior" on the street, she didn't feel safe for herself or her staff anymore.
It’s a story we are hearing more often in the lower city.
The police are also currently hunting for Joel Benjamin, a 34-year-old wanted for an attempted murder/stabbing at the Red Rose Motel on Queenston Road. These aren't just headlines; they are the reasons why that $15.2 million police budget increase is such a polarizing topic at City Hall.
Real Actions for Hamiltonians This Month
If you live here, you can't just let this news wash over you. You've got to move. Here is how to actually engage with what's happening:
- Register to Speak: The General Issues Committee is holding public delegations for the budget on January 19, 2026. You can show up in person at City Hall or do it virtually. If you think 5.5% is too high, tell them.
- Watch the HSR Stops: If you're a commuter, keep an eye on the Public Works Committee updates regarding FlixBus. This could significantly change your weekend travel plans by the summer.
- The Veterans Support: If you know a veteran in crisis, the new $750,000 federal allocation is specifically being routed through the city's housing supports. Reach out to the Housing Secretariat at City Hall to see how those funds are being accessed.
- Check Your Property Assessment: With the 5.5% increase on the horizon, now is the time to ensure your property assessment is accurate. A higher assessment plus a higher tax rate is a double whammy you want to avoid.
Hamilton is in a weird spot. We are "the ambitious city," but right now, that ambition is being tested by a stagnant housing market and a budget that is stretching everyone to the limit.
Stay informed, get involved in the GIC meetings next week, and keep an eye on those Ward 4 development plans.