Ontario Trillium Benefit lump-sum payment threshold raised from $360 to $500

The regulation has been updated to raise the threshold below which the Ontario Trillium Benefit (OTB) can be paid as a single lump sum rather than monthly installments. Under the new rules applying to benefit years based on 2024 and later tax years, individuals whose total annual OTB entitlement is more than $2 but no more than $500 may receive their benefit in one payment instead of spread across 12 months. The previous $360 ceiling continues to apply for benefit calculations tied to earlier tax years. Individuals who were previously receiving monthly payments because their benefit exceeded $360 may now receive a single annual payment if their entitlement falls at or below the new $500 cap. No action is required from recipients — the payment method is determined administratively by the Ontario Minister.

Ontario adds a new retail-sales-tax rebate program for residential property purchases, capped at $50,000

The Act now includes a new rebate stream (section 51.2) that lets the Minister create regulations providing credits or payments to buyers in respect of the federal component of HST paid on residential property. Each rebate is capped at $50,000 per transaction, and any eligibility condition tied to a purchase-and-sale agreement date cannot extend beyond March 31, 2027. Rebates may be paid directly by the province, credited by a supplier on behalf of Ontario, or assigned by the recipient to another person—though the assignor and assignee become jointly and severally liable if the rebate was received without entitlement. Enforcement rules that previously applied only to First Nations rebates (assessments, penalties for false reporting, and fraud offences) now apply equally to this residential-property rebate program. A companion interpretation section (51.0.1) and general rules section (51.3) consolidate shared definitions and repayment obligations across both rebate streams.

Municipalities can now opt out of the small-population rule for resort condominium property tax classification

A provision that had been revoked is replaced with a new rule allowing single-tier or upper-tier municipal councils to pass a by-law waiving the requirement that a resort condominium unit be located in a municipality with a population of 10,000 or less. To use this option, the municipality must have had land in the resort condominium tax class in the preceding taxation year. The by-law automatically applies for the year it is passed and any future years the resort condominium class remains active in that municipality. Upper-tier municipalities can only waive the population rule for a lower-tier municipality if that lower-tier municipality also had qualifying resort condominium land in the prior year. Resort property owners and managers in municipalities that previously could not qualify due to population size should check whether their council has passed or intends to pass such a by-law.

Ontario government authorized to borrow up to $35 billion under new loan legislation

A new Ontario statute authorizes the provincial government to borrow up to $35 billion in total to pay off existing provincial debts and obligations or to make payments required by other legislation out of the Consolidated Revenue Fund. This borrowing authority is on top of whatever borrowing powers already exist under other Acts. Orders-in-council approving specific borrowing under this Act must be issued by December 31, 2028. Any actual borrowing under those orders must occur by December 31, 2029, unless by that date the Crown has already signed a borrowing agreement or enrolled in a borrowing program under the relevant order. Organizations that lend to or hold Ontario provincial debt, or that track provincial fiscal capacity, should be aware of this new authority.

Ontario's debt burden reduction strategy must now include metrics in its progress update

The annual debt burden reduction strategy that the Ontario government publishes with each budget must now include a progress update with specific metrics, rather than a general progress report on supporting actions. The practical change is that the update must now be measurable and quantified, not just descriptive. This affects how the government reports on its debt-reduction objectives relative to the ratio of provincial net financial liabilities to gross domestic product. Organizations that track Ontario's fiscal reporting, such as financial analysts, bond rating agencies, and public accountability groups, should expect more data-driven disclosure in future budgets.

Ontario Taxation Act updated: dividend tax rates, small business rate, beer credit, Trillium Benefit thresholds, and procedural rules all revised

Ontario's Taxation Act has been amended in several areas. The provincial gross-up rate applied to eligible dividends received by individuals is being reduced for tax years after 2026 (from 22.895% to 15.2283%), and the small business corporate tax rate will rise from 8.3% to 9.3% for days after June 30, 2026, narrowing the gap with the general rate. The Ontario Trillium Benefit payment rules are updated so that, starting with the 2025 base taxation year, the threshold for choosing a single annual payment rises from $360 to $500. The Ontario Computer Animation and Special Effects Tax Credit now has a clearer test for what prior-year labour expenditures reduce the current claim, and the Ontario Made Manufacturing Investment Tax Credit is now limited to expenditures incurred before January 1, 2027. The small beer manufacturers' tax credit formula is revised with new per-litre rates for the March 2026–February 2027 sales year and for years starting March 1, 2027. New procedural provisions incorporate additional federal assessment and evidentiary rules into the Ontario Act.

Ontario eliminates volume and environmental taxes on beer, wine and spirits; raises basic beer tax rates and restructures spirits tax by alcohol content

Ontario's Liquor Tax Act has been restructured to remove the separate volume tax and environmental tax that applied to beer, wine, wine cooler, and spirits purchased from licensed retail stores — those charges no longer exist. The basic tax rate for beer has increased: draft beer moves from 72.45 cents to 90 cents per litre, and non-draft beer from 89.74 cents to $1.18 per litre, with microbrewer discount amounts adjusted accordingly. Spirits sold at distillery retail stores are now taxed on a tiered basis by alcohol content (20%, 25%, or 30.75% of retail price depending on whether ABV is 7.1% or below, between 7.1% and 18%, or above 18%), replacing the previous flat 30.75% rate. The retail price calculation formulas for wine, wine cooler, and spirits have been simplified into a single algebraic formula, removing the steps that previously backed out volume and environmental taxes. The definition of 'spirits cooler' has been removed from the Act, and transition rules protect collectors and purchasers who paid tax at old rates before the changes took effect. Businesses that collect or remit liquor tax — including beer manufacturers, microbrewers, wineries, and distilleries — should review their systems to apply the new rates and simplified formulas.

Ontario expands the election to treat funded benefit plans as unfunded for tax purposes, with new ministerial regulation powers

Planholders of funded benefit plans can now elect to have their employer health tax on benefit plan contributions calculated under the unfunded-plan rules (based on benefits paid rather than contributions made). Previously this election was only available to qualifying trusts with excess assets; it is now open to any funded benefit plan planholder. The Minister gains authority to prescribe limitations on which plans may elect, how long elections last, and to make regulations overriding the normal transition rules when an election is made or revoked — including regulations that can apply retroactively. Planholders who think they may benefit from switching to unfunded-plan tax treatment should review whether they qualify and how to file an election in the form and manner the Minister approves. The earlier disclaimer about the consolidation being affected by retroactive provisions has been removed, suggesting the retroactive provisions have now been incorporated.

Status Indians now excluded from Ontario's 'foreign national' definition for land transfer tax purposes

The definition of 'foreign national' in Ontario's Land Transfer Tax Act has been updated to explicitly exclude persons registered as Indians under the federal Indian Act. Previously, the definition tracked the federal Immigration and Refugee Protection Act without any carve-out. As a result of this change, registered Indians are no longer treated as 'foreign nationals' or 'foreign entities' under the Act, which affects how the non-resident speculation tax and related provisions apply to them. Registered Indians purchasing land in Ontario should be aware they now fall outside those foreign-entity provisions. Anyone advising on land transfers involving registered Indians should review how this exclusion changes their tax obligations under the Act.

Farm and managed forest properties shielded from Toronto storm water fees, with refund rules for overpayments

Toronto and its local boards are being prohibited from charging storm water management fees or charges against portions of properties classified as farm or managed forest under the Assessment Act. An exception applies where storm water drains directly from a private storm sewer on the property into a City-owned storm sewer. Where fees were collected contrary to this new limit, the City or local board must refund the affected amounts and pay interest — calculated at the lowest Schedule I bank prime rate — starting either from the date the rule takes effect (for payments already received) or 90 days after receipt (for payments received afterward). Property owners with farm or managed forest classifications who have been paying storm water charges to the City of Toronto should review whether a refund may be owed to them. The section on police record check fees was also updated to replace 'municipality' with 'City' and 'local board (extended definition),' a terminology clarification with no apparent change in practical scope.