New TAL Calculation: What Renters Can Expect in 2026

The new rent adjustment calculation method is officially in effect as of January 1, 2026. Renters should prepare for changes when they receive their lease renewal notices.

New TAL Calculation: Understanding Rent Increases

In April 2025, the Quebec government proposed a new regulation aimed at reforming the rent adjustment method used by the Tribunal administratif du logement (TAL). The goal was to simplify rent setting, making it more predictable for tenants and landlords.

Key Changes in the Calculation Method

• The new rate will be based on a three-year moving average of the Consumer Price Index (CPI).
• Other factors include capital expenditures, changes in municipal and school taxes, and insurance premiums.

Previously, the adjustment rate relied on numerous criteria. This new approach aims to streamline the process and enhance understanding among users.

Expected Rent Increase Rates

For 2025, the TAL announced a proposed adjustment rate of 5.9%, marking the highest level seen in three decades. If the new calculation had been applied, the expected increase would have been just 4.5%.

Advocacy groups have indicated that if the new method had been used over the past 15 years, cumulative rent increases would have reached 38.2%, compared to the actual increase of 23.8%, according to reports from Devoir.

Renewal Notice Timeline

Landlords can issue lease renewal notices between three to six months before a lease expires. For leases ending on June 30, notices must be sent between January 1 and March 31.

Renters are allowed 30 days to accept the proposed changes, reject them, or choose to vacate the property. If no response is given, the lease automatically renews with the proposed changes.

As the TAL’s recommended rent adjustment rate hinges on previous year’s CPI figures, it remains to be seen how this will impact renters going forward. Statistics Canada will release the relevant CPI data at the end of January.

Conclusion

Renters should stay informed about these changes to the TAL calculation. Understanding the implications of these new regulations can help tenants navigate the evolving rental landscape in Quebec.