Ontario’s 2026 Budget Announces Tax Relief, Housing Incentives, Small Business Support Amid Economic Uncertainty

Ontario’s 2026 budget unveiled with focus on easing household and business costs amid global uncertainty. Finance Minister Peter Bethlenfalvy wrote in the foreword that “Ontario continues to navigate a period of global economic and geopolitical uncertainty… This is why our government is ready with a plan to protect Ontario – for today and for generations to come.”

The province projects a $12.3 billion deficit for 2025-26, lower than previously expected, with continued deficits forecast until a return to surplus in 2029.

A key measure includes a temporary rebate of up to $130,000 on the Harmonized Sales Tax for new homes valued at up to $1.5 million, potentially supporting thousands of new housing starts.

The budget also proposes cutting the small business corporate income tax rate from 3.2 per cent to 2.2 per cent starting July 2026, offering an estimated $5,000 in annual savings per business.

Transit users will benefit from the extension of the One Fare Program, which has saved commuters hundreds of millions since 2024. Additional measures include a $750 classroom supplies fund for teachers and plans to ban ticket resales above face value, aimed at reducing costs for consumers.