Toronto street parking rates could increase for 2nd straight year

On-street parking prices across Toronto could jump by 25 cents per hour, as the Toronto Parking Authority (TPA) moves to increase rates for the second straight year.

A new report headed to the TPA's audit and risk committee next week recommends rates for nearly 20,000 spaces citywide increase. 

The move would generate more than $5 million, at a time when the city is cash-strapped and looking to all of its agencies for more revenue.

Currently, on-street parking costs between $1.50 to $6.50 an hour, depending on location. If the suggested rate increase is approved, the lowest rate would remain $1.50, but all subsequent categories would jump by a quarter hourly — at most, someone would pay $6.75 an hour.

"It's a modest increase," said Jeffrey Dea, TPA's vice-president of growth and strategy.

"It's our second consecutive adjustment for on-street rates, the second in seven years," he said. Prior to last year's rate hike, the TPA hadn't raised its prices since 2017. 

"It felt like it was the right time to continue to push it upwards," Dea said.

In 2023, when city council lifted a $5 cap it had placed on on-street parking rates as part of its long-term financial plan to address yearly deficits of over $1 billion, the TPA board increased its maximum hourly rate to $6.50. 

In total, last year's on-street parking increase was estimated to raise as much as $6.5 million.

Even when the consecutive increases are factored in, on-street parking in Toronto is still "considerably lower" than many major cities, the TPA report notes. It says Vancouver charges up to $11 per hour, while Chicago charges up to $9.35 per hour and New York City charges up to $12 per hour.

Rates could also be going up in 112 of the TPA's 294 off-street parking lots and garages — a move the agency says will generate an estimated $3.4 million in revenue, while allowing it to match market demands.

"We set rates to encourage short stay, high turnover parking, so the parking is always available to support local business and communities," Dea said.

The report shows that the TPA is anticipating "historic revenues" of $166 million in 2024 and $182 million in 2025. 

Earlier this year, the agency and the city negotiated a new revenue-sharing agreement that will allow the TPA to keep more of what it earns to re-invest its own capital needs, as well as the continued expansion of Bike Share and its EV charging program.