Ontario budget announcement outlines tax relief housing rebates and deficit outlook for 2026

Ontario has released its 2026 budget, outlining new measures aimed at easing costs for households and businesses amid global economic uncertainty.

The Ontario budget announcement, titled “A Plan to Protect Ontario,” focuses on tax relief, housing incentives and support for small businesses.

“Ontario continues to navigate a period of global economic and geopolitical uncertainty. The year ahead could bring the potential of new challenges. This is why our government is ready with a plan to protect Ontario – for today and for generations to come,” Finance Minister Peter Bethlenfalvy wrote in the budget’s foreword.

The province projects a $12.3 billion deficit for 2025 to 2026, lower than previously expected, with continued deficits forecast until a return to surplus in 2029.

Among key measures is a temporary rebate of up to $130,000 on the Harmonized Sales Tax for new homes valued up to $1.5 million.

The province says the plan could support 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 offernig an estimated $5,000 in annual savings per business.

Transit users will see the extension of the One Fare Program, which allows a single fare across multiple systems and 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.