Every year, the Tribunal administratif du logement (TAL) publishes its rent increase indices to guide landlords and tenants. In 2026, recommended increases range from 2.3% to 3.8% depending on heating type. Here’s everything you need to know.
1. TAL indices 2026
The TAL publishes annual adjustment indices that reflect cost changes for landlords. For 2026, here are the recommended rates:
Unheated unit
Adjustment index: approximately 2.3%. The tenant pays their own heating, so only base costs are factored in.
Electric heating included
Adjustment index: approximately 3.2%. Hydro-Québec rate increases push this index higher.
Gas heating included
Adjustment index: approximately 3.8%. Natural gas costs have increased more, resulting in the highest adjustment.
These indices are recommendations, not legal caps. A landlord can request more, but the tenant can contest before the TAL.
2. Calculation formula
The TAL grid considers multiple components to determine the justified increase:
Simplified TAL formula
• Tax adjustment: change in municipal and school taxes
• Insurance adjustment: change in building insurance premium
• Energy adjustment: change in heating costs (if included)
• Repairs adjustment: amortization of major repairs completed
• Global adjustment: annual index set by the TAL
New rent = current rent × (1 + tax adjustment + insurance adjustment + repairs adjustment + global adjustment)
3. Concrete example
Let’s see the impact of the 2026 TAL increase on different rents with electric heating included (3.2% index).
| Current rent | Increase (3.2%) | New rent |
|---|---|---|
| $800/mo | $25.60 | $825.60 |
| $1,000/mo | $32.00 | $1,032 |
| $1,200/mo | $38.40 | $1,238.40 |
| $1,500/mo | $48.00 | $1,548 |
| $1,800/mo | $57.60 | $1,857.60 |
Detailed example: $1,200/mo rent
• Current rent: $1,200/mo
• Type: electric heating included
• TAL index 2026: 3.2%
• Monthly increase: $1,200 × 3.2% = $38.40/mo
• New rent: $1,238.40/mo
Over a year, this increase represents $460.80 more annually, equivalent to nearly half a month’s additional rent.
4. Tenant rights
Tenants have important protections when facing a rent increase:
Notice deadline
The landlord must send the notice at least 3 months before the lease ends. For a July 1st lease, the notice must be received before March 31.
Right to refuse
The tenant has 1 month to refuse in writing. If refused, the landlord has 1 month to file with the TAL, otherwise the rent stays the same.
Mandatory form
The notice must be on the prescribed form or contain all required information (new rent, lease duration, response deadline).
Right to remain
A tenant who refuses the increase cannot be evicted for that reason. The lease renews under the same conditions until the TAL rules.
5. Impact for investors
For investor-landlords, TAL indices directly affect rental profitability. A 3.2% increase on a 6-unit building at $1,200/mo represents an additional $2,764.80/year in revenue.
However, if your costs (taxes, insurance, energy) rise faster than TAL indices, your profit margin shrinks. This is why analyzing the vacancy rate in your area before investing is crucial. See our article on rental vacancy rates in Montreal 2026.
Remember that certain expenses related to your rental property are tax-deductible. Learn more in our guide on tax deductions for rental property owners in Quebec 2026.
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