Toronto on-street parking rates could increase again this year

Vehicles are parked on the street in downtown Toronto. (CP24)

It could cost more to park on the streets of Toronto later this year.

The Toronto Parking Authority (TPA) is proposing an increase of 25 cents per hour for 20,179 on-street spaces.

About 1,721 parking locations in high-demand, densified areas could see an increase of $1.25 to $2.75 per hour.

The TPA says the rate changes could generate $2.56 million in incremental revenue this year.

Currently, the hourly parking rate ranges from $1.50 to $6.75.

With the proposed hike, on-street parking could cost between $3.00 and $7 per hour. The TPA plans to keep the lowest hourly rate of $1.50 at 1,680 parking spaces.

The parking agency, which was directed by city council in February to implement a rate increase, said the proposed amount was determined following a comprehensive review. TPA said staff considered local conditions, price elasticity, inflation and parking rates in other cities.

“The proposed rate increases will ensure that on-street locations are priced to encourage high turnover to serve the greatest number of customers and help support the City’s financial goals and investments in overall city programs and operations,” the TPA said in its report.

This will be the third consecutive year that on-street parking rates have gone up.

The TPA noted that there will also be no additional changes at on-street parking locations along surface transit routes in Ward 11, University-Rosedale, where new rates were already approved in 2025.

If approved, it will be the third consecutive year that hourly parking rates have gone up. Despite that, TPA said in the report that its rates are “lower or on par” with those in other North American cities.

The parking agency pointed out that Vancouver charges up to $11 per hour, while New York City and San Francisco both charge up to US$13 per hour.

The TPA noted that it lost $2 million in revenue in 2025 due to some city initiatives like CafeTO, the transit initiative RapidTO, new bike lanes and construction activity, which resulted in the reduction of on-street parking supply.

The agency said it is working with other city departments to identify new paid-parking locations.

“An increase in on-street parking rates recognizes the value of curbside space by pricing to ensure the city continues to recoup revenue from parking activity, especially in high-demand areas,” the TPA said.

The parking agency noted in the report that staff consulted with councillors about the rate changes and no widespread concerns came up.

The TPA plans to implement the new rates in phases starting in April.