Montreal property taxes are up, but less than last year. What's in Valérie Plante's last budget

In her final budget as mayor, Valérie Plante has proposed measures aimed at keeping property tax increases moderate, alongside a rise in overall expenditures to over $7 billion.

Residential property taxes will see an average increase of 2.2% in 2025, a reduction compared to last year’s 4.9% hike. Commercial property taxes are set to rise by an average of 1.9%.

The total budget for 2025 stands at $7.28 billion, marking a 4% increase from the previous year’s $6.9 billion. Plante attributed this rise primarily to additional funding for housing and public transit, which she identified as key priorities for Montrealers.

Key Highlights of the 2025 Budget

Tax Hikes Differ by Borough

Property tax increases vary significantly across boroughs. The highest hikes are in Pierrefonds-Roxboro (4.1%), L’Île-Bizard—Sainte-Geneviève (3.4%), and Mercier—Hochelaga-Maisonneuve (3.1%). Meanwhile, Ville-Marie (0.2%) and Plateau-Mont-Royal (1.7%) will see the smallest increases.

Public Security Receives Largest Budget Share

Public security, which includes police and fire services, remains the largest budget category, accounting for 18% of total expenditures. The Montreal police department is allocated $824 million, a $3 million increase from the previous year. However, actual expenses may exceed this due to overtime, which has already pushed police costs $54 million over budget in 2024.

Increased Funding for Public Transit

The city has earmarked $762 million for public transit in 2025, a $47 million increase from the prior year. The Société de transport de Montréal (STM) has also unveiled its budget for 2025, estimated at $1.8 billion, with spending focused on hiring security and maintenance personnel. Despite trimming $16 million in projected expenses, the STM assured that bus and Metro services will remain unaffected.

Addressing Housing and Homelessness

The city has allocated $38 million for social and affordable housing and $10 million for organizations supporting unhoused individuals. In August, plans were announced to construct 60 modular housing units in 2025 as temporary accommodations for unhoused residents awaiting permanent social housing.

Long-Term Infrastructure Investments

Montreal’s 10-year infrastructure plan is projected at $24.8 billion, up from $23.9 billion last year. Key investments for 2025 include $599 million for drinking water, wastewater treatment plants, reservoirs, and pumping stations, and $550 million for road infrastructure.

Plante, who announced in October that she would not seek re-election, will conclude her term as mayor before the next municipal election on November 2, 2025.