The government is delivering on its plan to protect Ontario by building the most competitive, resilient and self-reliant economy in the G7. Global economic uncertainty, driven by U.S. tariffs, geopolitical instability and technological change, presents historic challenges and opportunities that will accelerate the pace of structural change in Ontario’s industries.
Ontario is cutting red tape, streamlining and speeding up approvals, as well as lowering costs and taxes. In addition, the government continues to make strategic investments in nuclear energy, critical minerals, life sciences, defence, manufacturing, as well as in innovation and in the province’s highly skilled workforce, while working to create new opportunities for trade to support future growth. Together, these actions are reinforcing the foundations of a strong and resilient economy.
Strengthening the Foundation for Growth Through a Multi-Year Tax Action Plan
Since 2018, the government has provided significant tax relief to improve competitiveness and lower costs, including delivering the Ontario Made Manufacturing Investment Tax Credit, implementing the Low-income Individuals and Families Tax Credit, permanently reducing gas and fuel tax rates and increasing the Employer Health Tax exemption.
Building on these actions to support Ontario workers, businesses and communities, the government launched a multi-year Tax Action Plan in the 2025 Ontario Economic Outlook and Fiscal Review to help make Ontario the most competitive jurisdiction in Canada. As first steps in its multi-year Tax Action Plan, Ontario is:
- Planning to lower the cost of capital investments by providing $3.5 billion in tax relief over four years through the renewal and enhancement of accelerated writeoff measures, subject to passage of federal legislation;
- Proposing to cut the small business Corporate Income Tax (CIT) rate by over 30 per cent, allowing small businesses to reinvest in their business and grow; and
- Providing a temporary rebate on the full provincial portion of the Harmonized Sales Tax (HST) on all new homes valued at up to $1 million, subject to federal legislative enactment, helping more families realize the dream of homeownership.
However, there is more work to be done to make Ontario the best place to live, work and raise a family, as well as to invest, create jobs and do business. Through the Tax Action Plan, the government will continue to update Ontario’s tax framework in a prudent and fiscally responsible manner to further improve Ontario’s competitiveness, lower costs and provide relief in the years to come.