On November 6, the Ontario government released its 2025 Fall Economic Statement/Ontario Economic Outlook and Fiscal Review, an update on the province’s finances.
Here are the key highlights that matter most to your business.
Tax Action Plan
The government announced that it will develop a multi-year Tax Action Plan to help make Ontario the most competitive jurisdiction in Canada. Under this plan, the government will update Ontario’s personal and corporate income taxes to encourage and attract more business investment, and improve Ontario’s competitiveness in the G7.
This positive step forward is a victory for CFIB and a reflection of all our recent Queen’s Park meetings on Small Business Tax Rate (SBTR) changes.
We hope the Tax Action Plan will focus specifically on lowering the SBTR from 3.2%-2% and raising its eligibility threshold from $500,000-$700,000. These two measures together would provide up to $25,000 in annual savings for a small business. Ontario’s SBTR is still the highest in the country (tied with Quebec), and it hasn’t been decreased since 2020. The SBTR threshold has been stuck at the same amount since 2007.
An update on the Tax Action Plan will be shared in the 2026 Ontario Budget expected in March.
$4B left in the Protecting Ontario Account
Earlier this year in the 2025 Ontario Budget, the government announced the creation of the $5B Protecting Ontario Account to provide businesses with critical tariff-related support. In August, the government used $1B of the funds earmarked for this account to launch the Protect Ontario Financing Program with liquidity support for Ontario businesses in the steel, aluminum, and auto industries.
The Fall Economic Statement mentions that the government is now developing the second and third streams of the Protecting Ontario Account that will be supported by the remaining $4B.
In our news release, we urge the government to use this $4B to fund our SBTR recommendations that would spur economic growth at a time when it is needed most.
We know that small business owners need more direct relief like tax cuts and WSIB surplus rebates to help them weather the tariff storm and unpredictable economy. They don’t have the time or resources to search and apply for programs for which their business ends up being ineligible.
The Deficit and Path to Balance
The province’s 2025–26 deficit is projected to be $13.5B, which represents an improvement of $1.1B from the outlook published in the 2025 Ontario Budget. The government expects to balance the budget by 2027–28 as part of its fiscal plan.
Next Steps
We look forward to reviewing the Fall Economic Statement in detail and participating in the government’s 2026 pre-budget consultations, likely in January.
We’ll continue to fight for lower small business taxes because our members told us that’s their top priority. Become a CFIB member today!