A Plan to Protect Ontario

March 27, 2026

2026 Ontario Budget delivering on plan to protect Ontario workers and families by
building a more competitive, resilient and self-reliant economy

Northumberland, ON — Yesterday, Minister of Finance Peter Bethlenfalvy released
the 2026 Ontario Budget: A Plan to Protect Ontario. In the midst of tariffs and economic
uncertainty, the government continues to deliver on its plan to protect Ontario by
building the most competitive, resilient and self-reliant economy in the G7, including
through significant tax relief contained in the next phase of Ontario’s Tax Action Plan.
The 2026 Budget furthers the government’s plan to attract jobs and investment, lower
costs for workers and businesses, keep life affordable for families and individuals and
make targeted investments in key public services that support the province’s long-term
prosperity.
“Ontario is navigating economic challenges with a pragmatic and prudent fiscal plan,”
said Minister Bethlenfalvy. “To help the province navigate these times and come out
stronger, we are investing in strategic priorities such as energy, critical minerals, key
infrastructure and critical technologies that will make our economy stronger, while
cutting red tape and creating the conditions for businesses to grow, supporting workers
and strengthening Ontario’s economy.”
“Ontario’s 2026 Budget is positioning our community as a global leader in new nuclear
at Wesleyville, investing in critical infrastructure to build our homes, hospitals,
recreational facilities, and broadband.” said David Piccini, MPP for Northumberland
Peterborough South. “At the same time, we are keeping costs down for small
businesses, families, and providing additional supports through the expansion of
primary care, the Ontario Autism Program, and investing in local educators, all providing
real, close to home benefits for residents across Northumberland.”
Despite challenging global economic circumstances. Ontario’s 2026 Budget reflects the
benefits of the province’s resilience and prudent fiscal management to date. While other
provinces and the federal government have made significant funding cuts, reductions in
the size of the civil service or increased taxes, Ontario’s 2026 Budget continues to
increase funding for key priorities like infrastructure, health care and education, while
providing substantial tax relief to make life more affordable for Ontario families, increase
competitiveness and spur investment and job creation in the province.
The government’s approach maintains a path to balance as part of its fiscal plan.
The 2026 Budget continues to take a prudent and financially responsible approach
through sustained investments in key public services, while maintaining the fiscal
flexibility needed to respond to changing conditions and support for the people of
Ontario.

Highlights include:

Delivering on the province’s Tax Action Plan to make Ontario the most
competitive jurisdiction in the G7 and lower costs by:
o Providing further relief for home buyers by removing the full 13 per cent of
the Harmonized Sales Tax (HST) for all eligible buyers of new homes
valued up to $1 million for a maximum rebate of $130,000 in relief to an
eligible buyer and the amount would be maintained for new homes valued
up to $1.5 million. The federal government has agreed to cost-share with
Ontario in support of provincial housing initiatives, subject to passage of
federal legislation, which would approximately cover the federal five per
cent portion for the HST that is being removed from new homes in
Ontario. This partnership would provide almost $2.2 billion in total joint tax
relief for housing in Ontario.
o Ensuring Ontario’s small businesses continue to stay competitive and
resilient by proposing to cut the small business corporate income tax (CIT)
rate from 3.2 per cent to 2.2 per cent effective July 1, 2026. By cutting the
rate by more than 30 per cent, over 375,000 Ontario small businesses
would benefit from an additional $1.1 billion in CIT relief over the next
three years.
o Intending to lower the cost of capital investments by allowing businesses
to accelerate the income tax deduction for the cost of depreciable assets,
in parallel with changes announced by the federal government. These
changes would lower the cost for investment in a broad range of assets
and would take effect following the passage of federal legislation.
Establishing the Protect Ontario Account Investment Fund, in which the province
will invest up to $4 billion to attract investment from pension funds and other
private capital to advance Ontario’s long-term economic and strategic priorities.
Increasing funding for the Ontario Autism Program to nearly $1 billion annually,
which will enable more children and youth to access core clinical services while
further strengthening sector capacity across the province.
Expanding Ontario’s four-year investment in the Primary Care Action Plan to $3.4
billion from 2025 to 2029, furthering the province’s plan to connect everyone in
Ontario to a family doctor or primary care provider. Initiatives through the Primary
Care Action Plan will close the gap for the remaining people of Ontario who want
to connect to primary care, achieving the goal of connecting every person in
Ontario to primary care.
Investing in the most ambitious provincial capital plan in Canadian history, with
planned investments over 10 years totalling more than $210 billion, including $37
billion in 2026–27. This includes building highways, hospitals, transit and
community infrastructure to keep workers on the job, strengthen Ontario’s
economy and ensure communities thrive for generations to come.
Providing an additional $300 million over six years through the Community Sport
and Recreation Infrastructure Fund, to help meet the needs of growing
communities by supporting the repair, upgrade or construction of new sport and
recreation facilities across the province. Ontario’s investments through the
program now total $500 million.
Improving student achievement and preparing students for the future by investing
$66 million per school year to create the Classroom Supplies Fund for
elementary school homeroom teachers to receive a Classroom Supplies Card
that provides access to $750 annually to reduce out-of-pocket expenses.
Saving daily transit users in the Greater Toronto and Hamilton Area (GTHA) up
to $1,600 per year, by extending the Ontario One Fare Program for an additional
two years to continue keeping costs down for commuters.
Quick Facts:
Ontario’s 2025–26 deficit is projected to be $12.3 billion — an improvement of
$2.3 billion compared to the outlook published in the 2025 Budget.
Ontario’s prudent plan does not raise taxes or cut services, and Ontario is one of
the only provinces that retains a path to balance.
Over the medium term, the government is projecting deficits of $13.8 billion in
2026–27 and $6.1 billion in 2027–28, before planning for a surplus of $0.6 billion
in 2028–29.
Ontario’s real GDP rose by an estimated 1.2 per cent in 2025 and is projected to
rise by 1.0 per cent in 2026, 1.7 per cent in 2027, 1.8 per cent in 2028 and 2.0
per cent in 2029.
Ontario’s 2025–26 net debt-to-GDP ratio is now forecast to be 36.8 per cent, a
decrease of 1.1 percentage points from the 37.9 per cent forecasted in the 2025
Budget, which is primarily due to a lower-than-projected deficit. Over the
medium-term outlook, the net debt-to-GDP ratio is forecast to stay below the
target of 40.0 per cent, demonstrating that Ontario continues to make positive
progress towards reducing the debt burden