A Plan to Protect Ontario

March 26, 2026

Beamsville – Today, Hon. Peter Bethlenfalvy, Minister of Finance, released the 2026 Ontario Budget: A Plan to Protect Ontario. In the face 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.

“Staring down tariffs and economic uncertainty, our Plan to Protect Ontario builds a strong province and a strong Niagara,” said Sam Oosterhoff, MPP for Niagara West.

“Ontario’s 2026 Budget outlines a vision to make our province the best place in the G7 to invest, create jobs and do business, including relief for home buyers and cutting tax rates for small business – the backbone of our economy.”

“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.”

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:

Providing further relief for home buyers by removing the full thirteen percent of the Harmonized Sales Tax 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 Harmonized Sales Tax 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 rate from 3.2 percent to 2.2 percent effective July 1, 2026. By cutting the rate by more than thirty percent, over 375,000 Ontario small businesses would benefit from an additional $1.1 billion in Corporate Income Tax 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.

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 ten 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 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.

Highlights for Niagara include:

Supporting continued construction of the new South Niagara Hospital which, once completed in summer 2028, will including 469 beds and 24/7 emergency, diagnostic, surgical and therapeutic services for patients and families across the region. Having completed West Lincoln Memorial Hospital in Grimsby last November, the province is also committed to the refurbishment of the Welland Hospital.

Supporting the growing number of seniors who call Niagara home by continuing to invest in historic expansions of palliative care and long-term care beds. The province is adding twenty-four new hospice beds, as well as 532 new and 923 upgraded long-term care beds to Niagara – the most beds in the region’s history.

Twinning the Garden City Skyway over the Welland Canal in St. Catharines. This section of the Queen Elizabeth Way is a strategic trade and economic corridor that supports the provinces supply chain by linking the international border crossings at Niagara Falls and Fort Erie with the Greater Golden Horseshoe. Site preparation work on the new bridge has already commenced.

Continuing expansion of GO Transit to make it easier and faster for people to get where they need to go within the Greater Golden Horseshoe, including more frequent train service to Niagara and expedited planning of the Grimsby GO Station.

Continuing to invest over $1 billion to refurbish the Sir Adam Beck and DeCew Falls generating stations, securing up to 1,700 megawatts of clean electricity for Niagara and the province.

Through the Municipal Housing Infrastructure Program, the province is investing $94 million in water systems and irrigation infrastructure, which includes $53 million for six water systems through the Housing-Enabling Water Systems Fund and another $41 million for irrigation pipelines to help deliver water to hundreds of farms and agricultural businesses across the region.

The province is investing nearly $180 million to build and renew seven schools in Niagara, as well as $5.2 million to expand teacher education at Brock University. New schools include the construction of St. Luke Catholic Elementary School in the Town of Lincoln, which will serve 421 student and include forty-nine new licensed child care spaces.

Protecting and supporting public safety by expanding the capacity of provincial jails, including building a new modular facility at the Niagara Detention Centre, accommodating up to fifty more inmates.

Expanding access to high-quality mental health and addictions care with the launch of a new Homelessness and Addiction Recovery Treatment Hub in St. Catharines.

Supporting victims of domestic violence by investing $3.8 million in a renovation and expansion of Gillian’s Place shelter in St. Catharines.

Advancing the Destination Niagara Strategy to unlock the region’s full potential as a year-round, world-class destination. The plan aims to grow annual tourism to 25 million visitors and double Niagara’s tourism impact, adding $3 billion to Ontario’s Gross Domestic Product each year. Key priorities including enhancing tourism attractions, while offering wine and culinary experiences, arts and culture and transportation improvements. Upcoming initiatives include procurements for a new observation wheel, revitalization of the Niagara Parks Marina, redevelopment of the Ontario Power Generating Station, exploration of a signature theme park and fully accessible, all-season Niagara River Line Tram. Transportation initiatives including expanding the Queen Elizabeth Way, twinning the Garden City Skyway, increasing GO Transit rail service and exploring enhanced air access at Niagara District Airport.

Continuing to support Niagara’s grape growers and craft beverage producers by reducing red tape for producers and retailers. Sales of Ontario beverage alcohol products have grown by approximately twenty-two percent, with local craft products up by about thirty-five per cent and Vintners Quality Alliance wine sales increasing by roughly fifty-two per cent.