On January 15, 2016, Saunders and the Blue Jays avoided salary arbitration by agreeing to a one-year, $2.9 million contract. In a 13–3 win over the Baltimore Orioles on June 17, Saunders hit three home runs for the first time in his career, and joined Joey Votto, Justin Morneau, and Larry Walker as the only Canadian players to hit three in a game and becoming the first to do it for a Canadian team. He also had eight RBI in the game, which established another career-high. Saunders was named as one of five candidates for the All-Star Game Final Vote campaign on July 5. He was announced as the Final Vote winner on July 8. After the All-Star break, Saunders struggled to a .178 batting average, eight home runs, and 15 RBI. Despite the poor second half of his season, Saunders still established several career-highs in 2016. He ended the campaign with a .253 batting average, 24 home runs, and 57 RBI in 140 games played. He appeared in eight postseason games for the Blue Jays, and hit .381 with one home run and RBI.