Ontario rent deposit interest.
Year by year, at the guideline.
Interest owed: $106.50
| Payment due | Guideline rate | Interest |
|---|---|---|
| Anniversary 2024-06-01 | 2.5% | $37.50 |
| Anniversary 2025-06-01 | 2.5% | $37.50 |
| Anniversary 2026-06-01 | 2.1% | $31.50 |
How it works
The interest falls due once a year, on each anniversary of the tenancy, at the guideline in effect on that date (s. 106(6)). It is simple interest on the deposit: the calculator assumes the deposit stays at the amount you enter. If the landlord applied past interest to top up the deposit after a rent increase (s. 106(7)), enter the current deposit and recalculate from the date it changed. Interest for a part year at the end of a tenancy is not calculated here.
Ontario rent increase guidelines
| Year | Guideline (and deposit interest rate) |
|---|---|
| 2027 | 1.9% |
| 2026 | 2.1% |
| 2025 | 2.5% |
| 2024 | 2.5% |
| 2023 | 2.5% |
| 2022 | 1.2% |
| 2021 | 0% |
| 2020 | 2.2% |
| 2019 | 1.8% |
| 2018 | 1.8% |
| 2017 | 1.5% |
| 2016 | 2% |
| 2015 | 1.6% |
| 2014 | 0.8% |
| 2013 | 2.5% |
| 2012 | 3.1% |
| 2011 | 0.7% |
| 2010 | 2.1% |
| 2009 | 1.8% |
| 2008 | 1.4% |
| 2007 | 2.6% |
| 2006 | 2.1% |
| 2005 | 1.5% |
Sources: ontario.ca, residential rent increases; Residential Tenancies Act, 2006, s. 106. Checked October 16, 2026.
Questions
Do Ontario landlords have to pay interest on the last month's rent deposit?
Yes. Section 106(6) of the Residential Tenancies Act requires the landlord to pay interest to the tenant every year on the rent deposit, at the rent increase guideline in effect when the payment becomes due.
What is the interest rate for 2026 and 2027?
2.1% for payments that fall due in 2026 and 1.9% for payments that fall due in 2027, the same as the rent increase guideline for those years.
Can the landlord keep the interest?
Only to top up the deposit. If the rent has gone up, s. 106(7) lets the landlord apply the interest toward bringing the deposit up to the new monthly rent; the amount applied becomes part of the deposit. Otherwise the interest is paid to the tenant.
Can an Ontario landlord take a damage deposit?
No. A landlord may collect a rent deposit of no more than one month's rent (or one rent period, if less) and a refundable key deposit, but not a damage or pet deposit.
More: Ontario landlord-tenant laws · deposit rules by province · BC deposit interest calculator
General information, not legal advice.