Nov. 21, 2025: Comprehensive review of the transit fare structure
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To |
Mayor and Members of Council, |
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From |
Troy Charter, Interim General Manager, Transit Services Department |
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Subject |
Comprehensive review of the transit fare structure |
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Date |
November 21, 2025 |
The purpose of this memo is to provide Members of Council with a comprehensive overview of the City’s transit fare structure, as requested in the motion adopted by Council on December 11, 2024. Updates on each part of the original motion are provided in Appendix 1.
Additionally, on September 11, 2025, Transit Committee approved a motion from Councillor Hill directing staff to “review the 90-minute transfer window and present options as part of the comprehensive fare review to temporarily increase the transfer window in order to address current service disruptions felt by many suburban residents.” The results of this analysis are included below.
It is not staff’s intention to alter the overall fare structure proposed as part of the 2026 Budget, as that scope of work and the resulting changes would require months of engagement with transit users and residents. Rather, we hope to gather public feedback and ideas to inform future changes in 2027 and beyond.
Current Fare Structure
OC Transpo’s fare structure has changed significantly over the past decades. Historically, fare products have been added to or removed from the fare structure individually, with most structural changes to the fare structure being associated with the provision of new discounted fares or the introduction of new technology for customers, such as the introduction of the Presto smartcard and the preparations for the opening of O-Train Line 1.
In June 2016, Council adopted the report “OC Transpo Fare System – Restructuring to Coordinate with the O-Train Confederation Line Multimodal Operations”. The delivery of transit service in Ottawa has changed through the years as the overall transit network expanded. An analysis of fares was completed as part of this report, and recommended adjustments were made to fares and fare products to better align with the new multimodal and modern transit system.
Council approved consistent multipliers and discounts based on the price of an adult single-ride fare. Most fare types have, since then, retained a constant relationship with the base adult single- ride fare.
The current discounted fares are:
Community Pass
The Community Pass was introduced in 2006, designed to offer reduced transit fares for individuals receiving income support through the Ontario Disability Support Program (ODSP). This pass is available to ODSP recipients and offers a reduced fare on single-ride fares and monthly passes. In some subsequent years, Council froze the Community Pass prices, so that the discount percentage has increased every year since 2019. The Community Pass is currently priced at $1.75 per trip, which is a 56 per cent discount from the price of an adult single-ride fare, and at $43.25 per month, which is a 68 per cent discount from the price of an adult monthly pass.
EquiPass
The EquiPass was introduced in 2017 as a monthly pass product, at a 50 per cent discount from the adult monthly pass. A discounted single-ride fare was introduced the following year, also at a 50 per cent discount. In some subsequent years, Council froze the EquiPass prices, so that the per cent discount has increased every year since 2019. The EquiPass is currently priced at $1.75 per trip, which is a 56 per cent discount from the price of an adult single-ride fare, and at $58.25 per month, which is a 57 per cent discount from the price of an adult monthly pass.
U-Pass
In 2009, Council approved the concept of establishing a discounted U-Pass that would be offered to full-time post-secondary students. In 2010, market research was conducted to gain a precise understanding of student travel, the amount of transit fares paid by students that used transit, and the general receptiveness to a U-Pass. In September 2010, the U-Pass pilot project commenced with Carleton University and uOttawa. Since then, Algonquin College (2015) and St-Paul University (2015) have joined the program.
The U-Pass is administered by the participating universities and college as a mandatory fee for full-time students residing in Ottawa and Gatineau (with limited exceptions). This means that the discount for the students who use transit is partly provided by the fees paid by those students who do not use transit as well as by the City.
The U-Pass is currently priced at $234.80 per semester, which is 57 per cent lower than the price of four months of an adult monthly pass.
Following direction from Council, staff are currently negotiating with the participating universities and college with an aim to have U-Pass prices increase each year consistently with other fare increases decided by Council, removing the 2.5 per cent cap that is in the current U-Pass agreements.
Seniors
Seniors aged 65 and older are eligible for a monthly pass discount of 57 per cent compared to the adult monthly pass, and a single-ride discount of 20 per cent. These discounts apply five days a week. On Wednesdays and Sundays, seniors can travel for free. As Canada’s population ages and the number of baby boomers entering their sixties increases, the number of residents who are eligible for a seniors’ discount has continued to increase.
Youth, pre-teens, and children
Until 2025, a discounted fare was available for youth to age 19. Over 90 per cent of the youth passes were sold to the four school boards through their two student transportation authorities. With the removal of the discount for youth in 2025, the fare revenue from the school boards now covers most of the cost of the special services that the City provides to the school boards’ specifications. A discount remains for pre-teens aged 11 and 12; their single-ride fare is 50 per cent of the cost of an adult fare.
Children 10 years of age and younger travel at no charge.
The table below shows the current fare calculations and the changes to discounts rates since 2016 based on Council’s policy decisions:
| Approved 2017 Budget | Approved 2025 Budget | ||
|---|---|---|---|
| Adult monthly pass | 34 x base fare | Same multiplier | 34 x base fare |
| Youth monthly pass | 23.0% discount | Category removed starting September 2025 | – |
| Senior monthly pass | 62.0% discount | Align with EquiPass discount | 56.9% discount |
| Community Pass monthly | 63.0% discount | Increased discount | 68.0% discount |
| EquiPass monthly | 50.0% discount | Increased discount | 56.9% discount |
| Adult single-ride fare | Base fare | Same multiplier | Base fare |
| Senior single-ride fare | 25.0% discount | Decreased discount | 20.0% discount |
| Child single-ride fare | 50.0% discount | Increased discount | Free to age 10 |
| Pre-teen single-ride fare | 50.0% discount | Same discount (more limited age) | 50.0% discount |
| Community Pass / EquiPass single-ride fare | 50.0% discount | Increased discount | 56.3% discount |
Average fare
Taking all fares into account, including discounted fares and free fares, OC Transpo expects to collect $2.42, on average, per customer-trip. The calculation of the average fare is the total budgeted amount of fare revenue, divided by the total budgeted ridership. The average fare is one measure that transit agencies use when benchmarking against other agencies, but it does not take into account the full picture of an agency’s fare policy.
Fare Increase Considerations
Planned increases to fares are primarily set out in the Long-Range Financial Plan for Transit, with consideration and approval by Council each year through the annual budget process. Fare increases may be recommended for a number of reasons, including:
- Inflation
- Council generally approves increases in fares every year, at or below the rate of inflation in transit operating costs.
- Cost recovery targets
- Council adopted a fiscal framework in 2007, setting a target that transit operating costs should be funded 55 per cent from fares and 45 per cent from property taxes and other sources. Currently, transit operating costs are funded by 69 per cent from property taxes and 31 per cent by fares.
- Transit operating costs increased substantially starting in 2019 with the opening of O-Train Line 1 and have increased further with the opening of Stage 2 extensions.
- Revenue from customers’ fares declined substantially starting in March 2020, with the onset of the COVID-19 global pandemic.
- Targets in the fiscal framework may now require adjustment due to the more intensive capital requirements of a rail-based transit system.
- Changes in funding from other levels of government
- During 2021, 2022, and 2023, the federal and provincial governments provided funding to cover the gap in the operating budget, which was primarily due to lower ridership during the COVID-19 pandemic, resulting in lower fare revenue.
Comparisons of Transit Fare Structures across Ontario
Ottawa’s average transit fare is in the lower range of Ontario cities. Within comparator cities, Kitchener-Waterloo-Cambridge (Grand River Transit) has the lowest average fare and York Region Transit has the highest. The average fare is a result of both fare policy and ridership patterns.
Adult fares
Ottawa’s regular single-ride adult fare is at the higher end of Ontario cities, equal to York Region at $4.00. This historically originates from past decisions to allocate subsidy primarily towards monthly passes, to encourage longer-term commitment to transit, and to the greater travel distances in the former Region and the current City.
Ottawa’s premium for cash payment is the lowest, equal to Toronto at 5 cents. The additional 5 cents was added to the Ottawa single-ride fare as part of Council’s fare policy decisions in 2016 to encourage customers to pay by Presto card. Approximately two percent of OC Transpo customer-trips are paid with cash. Other cities charge a premium of up to $1.10 for cash payments. As a result, Ottawa’s cash fare is mid-range among comparator cities (see Table 1 in Appendix 2).
Ottawa’s adult monthly pass price is mid-range among comparator cities. The monthly pass multiplier, which is the number of single-ride fares it takes to reach the monthly pass price, is 34 trips, which is among the lowest multipliers. In other major Ontario cities, the multiplier for a monthly pass ranges from 32 to 48 (see Table 2 in Appendix 2).
Discounted fares
Ottawa’s senior monthly passes are discounted by 57 per cent. This discount is mid-range among major Ontario cities and comparable to most. One city has no discount, and two cities have free fares for their residents, a 100 per cent discount (see Table 3 in Appendix 2). Ottawa’s senior single-ride fares are discounted by 20 per cent five days a week and by 100 per cent on Wednesdays and Sundays, which equates to a 43 per cent discount, on average, throughout the week. The comparator cities range widely, from no discount in one city to 30 to 50 per cent discounts in other cities (see table 4 in Appendix 2).
Starting in September 2025, Ottawa joined Kitchener-Waterloo in having no fare discount for high school students; other cities provide a discount for students ranging between 10 and 30 per cent. In Ottawa, transit fares for children are free up to and including age 10; in other cities, the highest child age for free fares ranges between 4 and 12. In the Greater Toronto and Hamilton Area (GTHA), some discounts are available only to residents of the particular municipality and not for customers who make trips across municipal boundaries.
Low-income fares
Ottawa offers the most generous discounts to low-income residents among these comparator cities. Monthly passes are at a 57 per cent discount for residents with family incomes below the Low Income Cut Off (LICO) and at a 68 per cent discount for residents receiving ODSP income support. Other major Ontario cities range from no discount up to a 60 per cent discount, (see table 5 in Appendix 2). Ottawa offers a 56 per cent discount for single-ride fares; comparator cities range from no discount up to a 50 per cent discount. Some cities offer only monthly passes or only single-ride fares with low-income discounts (see table 6 in Appendix 2). All of the comparator cities have a system to verify eligibility, and low-income discounts are available only to the residents of the city or region and not to cross-boundary travellers.
Comparative Analysis of Fare Structures
Staff have considered various fare revenue scenarios, including the following examples:
Current Fare Structure (from the approved 2025 budget book):
| Fare Type | 2025 Rate | Change from 2024 | Effective Date |
|---|---|---|---|
| Base Fare | $3.97 | +5.0% | Jan 1 |
| Adult Monthly Pass | $135.00 | +4.9% | Jan 1 |
| Youth Monthly Pass (11–19) | $104.00 | +4.8% | Jan 1 |
| U-Pass | $60.13 | +5.0% | Sep 1 |
| Senior Monthly Pass (65+) | $58.25 | +18.9% | Feb 1 |
| EquiPass / Community / Access Monthly | $43.25 | No change | Jan 1 |
| Day Passes | 1-day: $12.00 3-day: $30.00 5-day: $47.75 7-day: $56.75 |
+2.1% to +5.3% | Jan 1 |
| Single Ride | Adult (card): $4.00 Adult (cash): $4.05 Senior (e-purse): $3.20 Pre-Teen (11–12): $2.00 Child (0–10): Free |
+5.2% to +10.3% | Jan 1 |
| Para Transpo | Access Pass: $2.70 Rural Fare: $10.75 |
+4.9% to +5.9% | Jan 1 |
| Other | Presto Card: $4.00 Park & Ride Permit: $30.25 Gold Pass: $68.25 Bikesecure Permit: $10.00 Key Fob: $6.00 |
Most unchanged or +5% | Jan 1 |
| Chartered Bus | First 3 hrs: $646.00 Each additional hr: $216.00 |
+5.0% to +5.4% | Jan 1 |
Through the development of the four potential fare structure options described above, staff have made the assumption that the Displaced Persons and Refugees Transit Pass Program and the Emergency Shelter Pass Program would remain unchanged.
A Potential Simplified Fare Structure:
Staff have prepared four potential revised structures for transit fares:
Some transit agencies, such as the TTC in Toronto and TransLink in Vancouver, simplify the number of fare products offered by grouping fares for different groups of customer types into one price or discount. If OC Transpo were to standardize discounts, this could mean:
- a 50 per cent discount on monthly passes for seniors, people with low incomes and ODSP recipients
- a 50 per cent discount on single-ride fares for people with low incomes, ODSP recipients and pre-teens
- a 20 per cent discount on single-ride fares for seniors
Example simplified fare structure
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Fare type |
Monthly pass / Monthly maximum (2025) |
Single-ride fare (2025 equivalent) |
|---|---|---|
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Adult regular fare |
$135.00 per month |
$4.00 per trip |
|
Discounted fare |
$67.50 per month |
$3.20 per trip |
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$2.00 per trip |
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Other special fares: |
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The table below provides a comparison of the current fare structure with this example of a simplified fare structure, using 2025 fare levels:
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Fare type |
Current fare (2025) |
Potential fare (2025 equivalent) |
|---|---|---|
|
Adult monthly |
$135.00 |
$135.00 |
|
Senior monthly |
$58.25 |
$67.50 ⬆️ |
|
EquiPass monthly |
$58.25 |
$67.50 ⬆️ |
|
Community Pass monthly |
$43.25 |
$67.50 ⬆️ |
|
Adult single-ride |
$4.00 |
$4.00 |
|
Senior single-ride |
$3.20 |
$3.20 |
|
Pre-teen single-ride |
$2.00 |
$2.00 |
|
EquiPass single-ride |
$1.75 |
$2.00 ⬆️ |
|
Community Pass single-ride |
$1.75 |
$2.00 ⬆️ |
A Potential “One Fare” Model:
If all customers were to pay the same single-ride fare for each transit trip they made, with no monthly passes and no discounts available, and if the goal were to receive the same amount of total fare revenue as today, the fare would need to be $2.80. This would mean:
- 22 per cent of customers would pay less per trip than they do today.
- 42 per cent of customers would pay more per trip than they do today.
- 36 per cent of customers would pay the same as today.
- Ridership could decline by approximately 1.6 per cent though revenue would remain unchanged. Ridership impacts from changes in fares are explained in the Financial Risk Assessment section of this memo.
The table below provides a comparison of the current fare structure with this example of a simplified fare structure, using 2025 fare levels:
| Fare type | Current fare (2025) | Potential fare (2025 equivalent) |
|---|---|---|
|
Adult monthly |
$135.00 |
N/A |
|
Senior monthly |
$58.25 |
N/A |
|
EquiPass monthly |
$58.25 |
N/A |
|
Community Pass monthly |
$43.25 |
N/A |
|
Adult single-ride |
$4.00 |
$2.80 ⬇️ |
|
Senior single-ride |
$3.20 |
$2.80 ⬇️ |
|
Pre-teen single-ride |
$2.00 |
$2.80 ⬆️ |
|
EquiPass single-ride |
$1.75 |
$2.80 ⬆️ |
|
Community Pass single-ride |
$1.75 |
$2.80 ⬆️ |
This model assumes that as monthly passes would no longer be offered, a different cost-recovery arrangement would be needed with school boards. Additionally, the U-Pass agreement would remain in place as structured today. Low-income residents and ODSP recipients could continue to receive a discount from the $2.80 flat fare, with the discount continuing to be funded from City- wide taxes through the CSSD budget, as today.
Staff do not recommend abolishing monthly passes. Monthly passes allow customers to make a single financial transaction to get unlimited access to the transit system, speed up entry into stations and buses, and reduce the likelihood of fare non-payment.
A “One Fare” Model with an aim to increase fare revenue
If there were a goal to use a one-fare model to increase overall fare revenue by 10 per cent, the fare would need to be $3.25. This would mean:
- 18 per cent of customers would pay less per trip than they do today.
- 47 per cent of customers would pay more per trip than they do today.
- 35 per cent of customers would pay the same as today.
- Ridership could decline by approximately 2.3 per cent. Ridership impacts from changes in fares are explained in the Financial Risk Assessment section of this memo.
The table below provides a comparison of the current fare structure with this example of a simplified fare structure, using 2025 fare levels:
|
Fare type |
Current fare (2025) |
Potential fare (2025 equivalent) |
|---|---|---|
|
Adult monthly |
$135.00 |
N/A |
|
Senior monthly |
$58.25 |
N/A |
|
EquiPass monthly |
$58.25 |
N/A |
|
Community Pass monthly |
$43.25 |
N/A |
|
Adult single-ride |
$4.00 |
$3.25 |
|
Senior single-ride |
$3.20 |
$3.25 ⬆️ |
|
Pre-teen single-ride |
$2.00 |
$3.25 ⬆️ |
|
EquiPass single-ride |
$1.75 |
$3.25 ⬆️ |
|
Community Pass single-ride |
$1.75 |
$3.25 ⬆️ |
As in the previous option, the U-Pass and discounts for low-income residents and ODSP could continue to be available. And as in the previous option, staff do not recommend abolishing monthly passes.
Applying the TTC fare structure and prices in Ottawa
If the same fare structure and pricing as the TTC uses were applied in Ottawa, customers who continue to purchase monthly passes would pay more, some customers could move from a monthly pass to paying per single-ride and pay a similar or lesser amount than today, and many customers who pay per ride would pay less. The TTC has a higher monthly pass ratio, meaning it takes more single-ride trips to reach the price of a monthly pass in Toronto than it does in Ottawa (48 vs 34). If this structure were applied in Ottawa, it would be natural that some customers would move away from purchasing a monthly pass and would instead pay per ride.
|
Fare type |
Monthly pass / Monthly maximum (2025) |
Single-ride fare (2025 equivalent) |
|---|---|---|
|
Adult regular fare |
$156.00 per month |
$3.30 per trip |
|
Discounted fare |
$128.15 per month $123.25 per month |
$2.35 per trip |
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Other special fares: |
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The table below provides a comparison of the current fare structure with this example of a simplified fare structure, using 2025 fare levels:
|
Fare type |
Current fare (2025) |
Potential fare (2025 equivalent) |
|---|---|---|
|
Adult monthly |
$135.00 |
$156.00 ⬆️ |
|
Senior monthly |
$58.25 |
$128.15 ⬆️ |
|
EquiPass monthly |
$58.25 |
$123.25 ⬆️ |
|
Community Pass monthly |
$43.25 |
$123.25 ⬆️ |
|
Adult single-ride |
$4.00 |
$3.30 ⬇️ |
|
Senior single-ride |
$3.20 |
$2.25 ⬇️ |
|
Pre-teen single-ride |
$2.00 |
$2.35 ⬆️ |
|
EquiPass single-ride |
$1.75 |
$2.10 ⬆️ |
|
Community Pass single-ride |
$1.75 |
$2.10 ⬆️ |
Staff have estimated that adopting the TTC’s fare policy and pricing in Ottawa could lead to a decrease in fare revenue of $5.4 million, and a decrease in ridership of 500,000 annual customertrips.
Bringing back a monthly pass discount for youth with a lower price than the current adult monthly pass price would create a gap of approximately $1.4 million between the annual cost of operating school service and the revenue received. A funding source would be needed to close this gap.
Transfer Window
OC Transpo currently offers time-based transfers valid for 90 to 105 minutes depending on the time of day and day of the week. The transfer window for fares purchased after 10:30 pm each day of the week is valid until 4:30 am the next morning. These transfers are accepted across OC Transpo and STO services, with some exceptions (e.g., fares paid by debit card and credit card and on Para Transpo by mobile wallet are not accepted as transfers to STO services).
OC Transpo issues refunds upon request if a transfer that should be possible within the transfer window was not possible because of a service failure such as a missed connection.
Canadian transit agencies offer transfer windows that range from 90 minutes to 120 minutes:
- 120 minutes: STO in Gatineau, Durham Region Transit, HSR in Hamilton, STL in Laval, MiWay in Mississauga, Grand River Transit in Kitchener-Waterloo-Cambridge, York Region Transit, TTC in Toronto
- 90 minutes: Calgary Transit, Edmonton Transit, RTC in Québec, Winnipeg Transit
If the current transfer window in Ottawa were increased from 90 minutes to 105 minutes at all times, the estimated annual revenue impact would be approximately $330,000. If it were increased to 120 minutes, the estimated annual revenue impact would be approximately $900,000. The lost revenue calculated here is not related to long trips which require multiple transfers and is not related to refunds following service failures. It is instead related to separate short trips in succession which now require two fares and could in future be made with a single fare payment.
With the continuing expansion of the O-Train system, there will be many more stations where proof of payment is no longer required when connecting between services, and thus no risk of a financial penalty to customers in case of a missed connection. One current example is a trip from Kanata North to Carleton University, which could be made on Route 63 to Tunney’s Pasture Station, O-Train Line 1 to Bayview Station, and Line 2 to Carleton Station. At each of these stations, no proof of payment is required to transfer from one service to the next.
Considerations and Constraints of Fare Adjustments
Staff follow the direction of Council when adjusting transit fares. The primary direction comes each year with the Council-approved budget directions report and the approval as part of the City’s annual budget.
When recommending annual fare adjustments, staff attempt to make modest, predictable, and consistent fare increases that achieve roughly the same fare-to-property tax ratio as the previous year, align the fare increase with the City’s inflationary increases in operating cost and with the consumer price index (CPI) for Ottawa, and that achieve roughly the same total fare revenue in real terms as budgeted for the previous year.
It is important to note that some changes to OC Transpo’s current fare structure would take time to implement.
Due to the agreements OC Transpo has with various partners, staff must navigate constraints while considering fare change recommendations. The U-Pass program is an example of this. The participating institutions would need to agree to any proposed fare increases that are above the capped increases set out in the agreement. Elementary and secondary student transportation is another significant part of OC Transpo ridership, and there always needs to be a practical way of making bulk fare sales to school boards through the Ottawa Student Transportation Authority (OSTA) and Consortium de transport scolaire d'Ottawa (CSTO), while ensuring that fare sales to the school boards continue to cover the costs of providing school services.
Financial Risk Assessment
Transit fare increases above the rate of inflation can reduce demand for transit service, as current customers consider other travel choices, including mode and frequency of travel. In 2005 and 2015, the City retained consultants to provide technical support for ongoing work, and this included work related to fare elasticity, which measures the relationship between fares and ridership. The calculation of fare elasticity is an indication of the sensitivity of passenger demand to fare adjustments. Staff use a fare elasticity rate of -0.3 when estimating a fare change’s impact on ridership, for changes above or below the rate of inflation. This means that, for example, a 10 per cent increase in fares above the rate of inflation, would result in a 3 per cent decrease in ridership. Some groups of customers are considered inelastic, as their fares are paid by others (e.g., high school students) or as part of mandatory administrative fees (i.e., university and college students). The fare elasticity rate allows staff to better understand and predict customers’ behaviour when fare adjustments are considered.
The graph below highlights the estimated additional annual fare revenue, net of elasticity-based ridership changes, for six different rates of fare increases, based on a consumer price index (CPI) inflation rate of 2.5 per cent.
| Nominal increase to fares | New revenue | Real increase to fare revenue |
|---|---|---|
| 2.5% | $4,800,000 | 2.5% |
| 5.0% | $8,600,000 | 4.5% |
| 7.5% | $12,400,000 | 6.5% |
| 10.0% | $16,200,000 | 8.5% |
| 12.5% | $20,100,000 | 10.5% |
| 15.0% | $23,900,000 | 12.5% |
The current Long Range Financial Plan (LRFP) is based on a 2.5 per cent increase to fares each year. Decisions by Council froze fares in 2020 and 2023, resulting in no increases. If fares are frozen in one year, and not adjusted by increasing future fares by doubling the increase, the compounded effect over the current LRFP period (2026-2048) is a shortfall of approximately $150 million. The 2025 fare increase of 5 per cent generally made up for the fare freeze in 2023.
Next Steps
A separate memo responding to direction from Council on youth fares will also be issued in conjunction with this memo.
Staff have presented recommended fares for 2026 to Council in November as part of the 2026 draft budget. The recommendations follow the direction provided by Council in the budget directions report. No changes to the fare structure are currently being contemplated for 2026.
If you have any questions, please contact Pat Scrimgeour, Director, Transit Customer Systems and Planning.
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Troy Charter
cc:Senior Leadership Team
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