Ontario’s Major Policy Changes Coming in January 2026

Updated on December 28, 2025, 3:54 PM EST (Toronto Time)

Ontario is gearing up for 2026 with a significant overhaul of legal, regulatory, and policy frameworks. These changes will impact various aspects of life, work, hiring, and business operations in the province.

These changes will not be confined to a single area but will affect professionals moving between provinces, employers posting job vacancies, landlords, tenants, homeowners, public servants, and all Ontario taxpayers. The modifications include provincial, federal, and even municipal-level adjustments, especially in Toronto.

Ontario’s Adoption of “As of Right” Rules

One of the most crucial changes coming in January 2026 is the implementation of “As of Right” rules under the Ontario Free Trade and Mobility Act. The aim is to unleash Ontario’s economic potential by eliminating internal barriers that hinder business growth and workforce mobility within Canada.

Under this new framework, Ontario will recognize goods and services from other Canadian jurisdictions, streamlining the approval process and reducing compliance costs for businesses in the province.

From a labor perspective, professionals licensed in other Canadian provinces will be able to work in Ontario temporarily while meeting local registration requirements.

Changes Effective from January 1, 2026

Starting January 1, 2026, professionals in regulated occupations such as engineers, doctors, architects, and electricians will be able to start working in Ontario within 10 business days once their credentials are confirmed by regulators. They can practice in Ontario for up to 6 months while completing registration with local regulatory bodies.

This change is expected to have a significant impact on Ontario’s healthcare system by reducing administrative barriers for healthcare professionals trained elsewhere in Canada.

Ontario taxpayers will also see updated tax brackets and rates in 2026 to reflect annual adjustments.

Ontario Taxable Income Brackets For 2026

• 1st income bracket: Up to $53,891
• 2nd income bracket: Greater than $53,891 up to $107,785
• 3rd income bracket: Greater than $107,785 up to $150,000
• 4th income bracket: Greater than $150,000 up to $220,000
• 5th income bracket: Greater than $220,000

Ontario Tax Rates For 2026

• 1st income bracket: 5.05%
• 2nd income bracket: 9.15%
• 3rd income bracket: 11.16%
• 4th income bracket: 12.16%
• 5th income bracket: 13.16%

Ontario will continue to use a two-tier surtax system in 2026, impacting higher earners.

Ontario Surtax Thresholds For 2026

• 1st tier basic tax range: Greater than $5,818 up to $7,446 (20%)
• 2nd tier basic tax range: Greater than $7,446 (56%)

Additionally, Ontario’s non-refundable tax reduction will remain to benefit lower-income households.

New Pay Transparency Laws

Starting January 1, 2026, Ontario will introduce significant updates to the Employment Standards Act, 2000, focusing on how employers interact with job candidates.

Employers with 25 or more employees will be required to disclose salary information in job postings within a specified range. Roles offering over $200,000 per year are exempt from this rule.

Employers must also disclose the use of artificial intelligence in candidate selection. Candidates attending interviews must be informed of the outcome within 45 days.