Highlights of the 2026 Budget:
A Plan to Protect Ontario

Protect Workers and Businesses from Tariffs and Economic Uncertainty

• Delivering on the province’s Tax Action Plan to make Ontario the most competitive jurisdiction in the G7 and lower costs by:
  • 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 of 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.
  • 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.
  • 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.
• Investing an additional $107 million over three years, starting in 2026–27, to renew support for the Critical Technologies Initiatives program. The funding will help accelerate the development, commercialization and adoption of critical technologies in key sectors, such as advanced manufacturing, automotive, life sciences, mining, defence, agriculture, and smart infrastructure. These technologies will help create new opportunities for businesses and increase productivity and boost Ontario’s innovation ecosystem and AI infrastructure.
• Investing $9.4 million over three years, beginning in 2026–27, to renew grants for the Summer Company and Starter Company Plus programs delivered through the Small Business Enterprise Centers (SBECs) network. To help SBECs meet growing program demand, expand advisory services and support new initiatives, Ontario is also providing an investment of $3 million over three years, starting in 2026–27.

Protect Ontario by Building

• 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.
• Working with the federal government to provide funding to eligible municipalities that take action to significantly reduce development charges and, in doing so, make housing more affordable and speed up construction of the homes that families across the province urgently need.
• Supporting the modernization and expansion of Billy Bishop Airport. The province intends to bring forward legislation that would see it assume the City of Toronto’s current role in the tripartite agreement governing the airport, as well as taking ownership of City-owned land at the airport to support its future growth and expansion. This expansion will support a more competitive and resilient Ontario economy by reducing crowding at existing airports, offering more flight options at more competitive prices to more destinations, and creating and supporting thousands of jobs in Ontario’s construction, tourism and transportation sectors.

Protect Ontario’s Services

• 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.
• 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.
• Establishing a new long-term funding model to protect postsecondary students’ access to the education they need to launch successful careers, while building long-term sustainability in the postsecondary sector and supporting world-class research being conducted at Ontario universities and colleges. The model will bring an additional $6.4 billion into the sector over four years and raise annual operating funding to $7 billion, a 30 per cent increase and the highest level in the province’s history.
• Continuing to provide support to growing communities by increasing modern learning spaces for students by investing about $30 billion over the next 10 years, including over $22 billion in capital grants, to support new and redeveloped schools and child care projects.  
• Investing approximately $64 billion over the next decade in health infrastructure, including approximately $50 billion in capital grants, Ontario’s ambitious plan will support over 50 hospital projects and deliver approximately 3,000 new hospital beds to enhance access to quality care and build a connected, people-first health care system.  
• Providing $139.4 million in additional annual funding to support high-quality, resident-centred, and sustainable long-term care. As part of this funding, the government is investing $95.3 million, starting in 2026–27, to maintain existing services for residents. The government is also investing $44.1 million, starting in 2026–27, ensuring every resident continues to receive an average of four hours of direct care each day from nurses and personal support workers, and 36 minutes of care from allied health professionals.

Protect Ontario by Keeping Costs Down

• 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.
• Proposing new consumer protection measures that will make it illegal for tickets to concerts, cultural events, sports games, theatre performances and other live events held in Ontario to be resold for more than their original cost. By capping resale ticket prices, the government is helping restore fairness for fans.

Protect Ontario’s Borders and Communities

• Investing $32.5 million in 2026–27 as part of Operation Deterrence 2.0 to establish both the Border Security Grant to enable municipal and First Nations police services to acquire specialized assets, such as drones, marine vessels, and surveillance technologies, and the Border Integrity Investigation Fund to provide targeted operational funding to police services to address border‑related enforcement gaps. These measures will enhance investigations, intelligence gathering, expand border policing capacity and help disrupt organized crime networks from operating across the border.
• Expanding the capacity of the adult correctional system, including adding more space to existing facilities to optimize capacity, alongside building new facilities and inmate housing to meet forecasted demands. The government is also hiring 700 more staffing resources, including correctional officers, nurses and support staff to manage increased correctional capacity.  
• Investing more than $41 million over the next three years to offer School Resource Officer programs to help reduce the risk of violence in schools, promote the safety of students and educators, and foster trust and mentorship within schools.
• Investing an additional $8.3 million in the Bail Compliance and Warrant Apprehension Grant program in 2026–27, as the government continues to support police services in ensuring that high-risk, repeat and violent offenders comply with their bail conditions.