Toronto drivers could soon face higher parking rates

It could soon cost you a bit more to park your car in Toronto as the city considers raising the cost of on-street parking across thousands of spaces.

The Toronto Parking Authority (TPA), which manages over 20,000 on-street parking spaces, is gearing up to vote on whether to increase parking rates in Toronto by 25 cents per hour, according to a February report from TPA's president to its board of directors.

Currently, on-street parking rates range from $1.50 per hour to $6.75 per hour, with higher rates being found in the most high-density areas within the city. The report responds to a motion approved by city council last month, which requested that the TPA apply a rate increase to align with Toronto's "financial and mobility goals."

Along with on-street parking, the TPA also operates 292 off-street parking facilities throughout Toronto, including surface lots and garages.

According to the report, the TPA manages an estimated 1,680 parking spaces under the $1.50 per hour rate, 8,569 spaces under the $4.25 per hour rate, and 2,704 under the $6.75 rate. If approved, parking rates at most on-street locations would increase by 25 cents per hour in April, except for those located in the areas with the lowest rates, which will remain the same.

The TPA maintains that even with this increase, its on-street parking rates are lower or on par with other major North American cities. For example, Vancouver charges up to $11 per hour, while Chicago charges up to US$7 per hour, and New York City and San Francisco both charge up to US$13 per hour.

"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 report reads.

The hiked-up rates are expected to generate an incremental net revenue increase of $2.56 million in 2026, assuming that the changes are implemented in April.