Ontario Finance Minister Peter Bethlenfalvy has tabled the province’s 2026 budget, outlining a plan focused on tax relief, economic resilience and major infrastructure investments amid global uncertainty.
The document, titled A Plan to Protect Ontario, aims to strengthen the province’s economy while keeping costs down for families and businesses. Bethlenfalvy said the government is taking a “pragmatic and prudent” approach as it responds to tariffs and broader economic challenges.
The budget includes measures to improve affordability, including removing the provincial portion of the Harmonized Sales Tax on new homes valued up to $1-million, with rebates scaling to $1.5-million. The province says the move, combined with anticipated federal support, could deliver roughly $2.2-billion in housing-related tax relief.
Small businesses are also set to benefit, with the government proposing to cut the corporate income tax rate from 3.2% to 2.2% starting July 1, 2026. Officials say more than 375,000 businesses would see savings totaling $1.1-billion over three years.
The plan also includes allowing businesses to accelerate tax deductions on capital investments, aligning with expected federal changes, and the creation of a $4-billion Protect Ontario Account Investment Fund to attract private-sector investment.
On the spending side, the government is boosting funding for key public services. The Ontario Autism Program will increase to nearly $1-billion annually, while the Primary Care Action Plan will expand to $3.4-billion over four years, with the goal of connecting all residents to a family doctor.
Infrastructure remains a central focus, with more than $210 billion planned over the next decade, including $37-billion in 2026–27 for highways, hospitals, transit and community projects.
Additional investments include $300-million for community sport and recreation facilities and $66 million annually to support a new Classroom Supplies Fund for elementary teachers.
Transit users in the Greater Toronto and Hamilton Area will also see continued savings, as the Ontario One Fare Program is extended for another two years.
The government says the plan maintains a path to balance while preserving flexibility to respond to economic changes, positioning Ontario as a competitive and self-reliant economy within the G7.
(Written by: Jordan Mercier)