Zeifmans Family Business Library

Ontario Budget 2026 What It Means for Business Owners and Investors

Ontario’s 2026 budget cuts the small‑business corporate tax rate from 3.2% to 2.2% effective July 1, 2026. It also reduces the non‑eligible dividend tax credit to 1.9863%, raising the combined tax on such dividends to 48.89% starting 2027. A temporary HST new‑housing rebate offers up to $130,000 for homes priced under $1.5 million for contracts signed between April 2026 and March 2027. These measures create a narrow planning window for owners to accelerate dividend distributions and for developers to time projects toward the rebate period.