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Although some landlords are hoping to keep prices manageable, renters told Newsday they are bracing for impact as a 2.5-3.5 per cent tax on rental income is set to begin January 1, 2026.

The tax will apply to rental incomes of $20,000 or more, and the one-time $2,500 registration fee is expected to earn the government $70 million. The measures were announced in the 2026 national budget presented by Finance Minister Davendranath Tancoo on October 13.

“It will fall on the renter because the landlord will claim that it cuts into their profits,” one Cumuto renter told Newsday on X.