Ontario Cutting Small Business Tax by $1.1 Billion

April 2, 2026

The government is delivering on its plan to protect Ontario by building a more competitive, resilient and self-reliant economy with a $1.1 billion cut to the small business corporate income tax (CIT), from 3.2 per cent to 2.2 per cent, over the next three years.

This tax cut, which is a 31.25 per cent cut to the existing rate, will provide more than 375,000 Ontario small businesses with up to $5,000 in tax relief every year. This tax relief, which is being delivered through the province’s 2026 Budget, will help small business owners manage rising costs and economic uncertainty in the midst of U.S. tariffs and allow them to reinvest the savings back into their business

News Releases:

En: Cutting Small Business Tax

Fr: Réduction de l’impôt sur les petites entreprises