Budget 2026 delivers on Ontario Chamber’s call for small business tax relief

(TORONTO – March 26, 2026) – The 2026 Ontario Budget prioritizes economic stability and responds to the Ontario Chamber’s call for meaningful tax relief for small businesses, alongside targeted measures to support investment, innovation, and productivity.

“While Ontario businesses have been resilient, they find it hard to invest amidst rising costs, trade uncertainty, and tight margins,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce. “Budget 2026 strikes a balance, providing stability and a path to fiscal responsibility while giving businesses welcome breathing room and support to invest, diversify, compete and grow.”

Finance Minister Peter Bethlenfalvy highlighted the Ontario Chamber’s advocacy in his budget speech and delivered various measures aligned with the OCC’s 2026 Budget priorities:

• Small business tax relief through a permanent reduction of the small business corporate income tax rate from 3.2 per cent to 2.2 per cent, providing more than 375,000 Ontario businesses with more room to invest, grow, and absorb ongoing cost pressures.
• Productivity‑focused incentives, including accelerated write‑offs to reduce the cost of machinery and equipment.
• Housing affordability and supply measures, including the removal of the provincial portion of the HST on new homes, supported by a federal-provincial cost-sharing agreement to lower costs and support new housing development.
• Investments in strategic sectors, including by creating a new Protect Ontario Account Investment Fund, with up to $4 billion dedicated to supporting new industries by crowding in private and pension capital. The Budget also prioritizes health system modernization, energy, critical minerals, and advanced technologies, to strengthen Ontario’s industrial base and long-term competitiveness.
• Postsecondary education and skills development, with $6.4 billion for post-secondary education, as championed by the OCC, to strengthen the talent pipeline and support research, innovation, and commercialization.

Looking ahead, the OCC is urging the government to build on this foundation by:

• Simplifying the tax and regulatory environment to incentivize investments in productivity, reduce administrative burden, remove outdated provisions and unlock business growth.
• Leveraging public procurement to better support Ontario-based SMEs and scale homegrown innovation.
• Introducing new programs, micro-credentials, work-integrated learning opportunities, and skills training in collaboration with post-secondary institutions and tailored to support small and medium-sized enterprises and high-demand sectors.
• Developing an employee ownership policy framework to reduce barriers, promote awareness, and create targeted incentives to complement the federal government’s approach.
• Accelerating climate adaptation and resilience, through targeted infrastructure investments and support to help businesses manage transition costs.
• Modernizing the provincial–municipal fiscal relationship to support sustainable local services and long-term economic growth.
• Strengthening Ontario’s culture and tourism sectors by recognizing them as critical economic infrastructure through a coordinated strategy that strengthens workforce development, regional economic growth, and market access.

“Stability is essential but not sufficient,” Tisch added. “The next phase must focus on unlocking investment in productivity, fostering entrepreneurship, scaling innovation, and building a sustainable, competitive and diversified economy.”

On behalf of its 60,000 members, the Ontario Chamber of Commerce looks forward to continuing to work with the Government of Ontario to advance inclusive, sustainable prosperity for businesses, workers and communities.

Read our full 2026 Ontario Budget submission here.

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About the Ontario Chamber of Commerce

The Ontario Chamber of Commerce (OCC) is the indispensable partner of business and Canada’s largest, most influential provincial chamber. It is an independent, non-profit advocacy and member services organization representing a diverse network of 60,000 members. The OCC convenes, mobilizes and empowers business and local chambers in pursuit of its purpose: to bring inclusive and sustainable prosperity to Ontario’s businesses, workers, and communities.

For more information, please contact:

Andrea Carmona
Director of Public Affairs
Ontario Chamber of Commerce
andreacarmona@occ.ca | Mobile: (647) 234-0255