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Ontario Last Month's Rent Deposit Interest Calculator

Calculate the interest owed on a last month's rent deposit in Ontario. Landlords must pay it every year at the rent increase guideline rate, which is 2.1% for 2026.

Rates last verified September 23, 2026

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Estimate for information only, not legal advice. Rates last verified September 23, 2026.

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Deposit Interest - 2026

2.1% simple

Unit 101 J. Smith $1,500 $31.50

Unit 204 A. Chen $1,200 $25.20

Unit 305 M. Patel $950 $19.95

Journal entries posted $76.65

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How deposit interest works in Ontario

Ontario landlords cannot take a security or damage deposit. They can collect a last month's rent deposit, and it earns interest.
The interest rate is the rent increase guideline in force when each year's interest falls due: 2.1% in 2026 and 1.9% in 2027. The 2021 guideline was 0% because of the rent freeze.
The landlord must pay the interest every year, usually on the anniversary of the deposit.
The landlord may keep some or all of the interest to top the deposit up to the current month's rent. Any interest left over goes to the tenant.
If the landlord does not pay the interest, the tenant can deduct it from the rent.

Official sources

Ontario deposit interest rates by year

Period	Annual rate
2027	1.9%
2026 (current)	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%

Last verified September 23, 2026 against official government sources.

Calculators for other provinces

Frequently Asked Questions

Common questions from Canadian landlords and tenants about deposit interest

Ontario Deposit Interest Questions

2.1%, the same as the 2026 rent increase guideline. The 2027 guideline, and so the 2027 rate, is 1.9%.

Yes. When the rent goes up, the landlord may keep some or all of the interest to bring the deposit up to the new monthly rent. Any interest left over must be paid to the tenant.

No. Ontario only allows a last month's rent deposit and a refundable key deposit. The interest rules apply to the last month's rent deposit.

In most provinces and territories, yes. The province sets the rate each year and the landlord owes that interest to the tenant. Quebec does not allow security deposits at all, in New Brunswick the deposit is held by the province and the interest goes to the Crown. Ontario does not allow damage deposits, but landlords must pay interest on a last month's rent deposit.

Multiply the deposit by the annual rate, then by the share of the year the deposit was held. When a deposit is held across several years, each year uses its own rate. Some provinces compound, so interest earned in earlier years also earns interest. This calculator handles both and shows the breakdown for each period.

This calculator is a free estimate for information only and is not legal advice. Rates and rules come from each province's official sources and were last verified on September 23, 2026. Always confirm with your provincial residential tenancy office before paying or returning a deposit.

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