Ontario enters 2026 amid one of the most extensive waves of legal, regulatory, and policy reform in recent years.
From labour mobility and hiring practices to taxation, safety requirements, public sector work rules, and rising household costs, January 2026 represents a broad reset in how people live, work, hire, and operate businesses across the province.
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The scope of these changes extends well beyond any single industry. Professionals relocating between provinces, employers advertising jobs, landlords and tenants, homeowners, public servants, and nearly every Ontario taxpayer will feel the effects.
While many measures are provincial, others align with new federal legislation or originate at the municipal level, particularly in Toronto.
This guide outlines the most significant Ontario laws and policy changes taking effect in January 2026, why they matter, and who will be impacted the most.
Ontario Introduces “As of Right” Labour Mobility Rules
One of the most significant shifts coming in 2026 is Ontario’s adoption of “As of Right” rules under the Ontario Free Trade and Mobility Act.
The goal is to remove internal Canadian barriers that slow workforce movement and business expansion, positioning Ontario as part of a broader national economic integration effort.
Under the new system, goods and services legally produced or provided in other participating provinces and territories will be accepted in Ontario without additional approvals or re-certification. This mutual recognition approach reduces red tape, cuts compliance costs, and accelerates access to domestic markets.
Labour mobility reforms are a central feature of the change.
Professionals licensed in other Canadian jurisdictions will be permitted to work in Ontario on an interim basis while completing local registration requirements.
What Takes Effect on January 1, 2026
Beginning January 1, 2026, qualified professionals will be able to start working in Ontario within 10 business days after regulators confirm their credentials and minimum standards.
Covered professions include engineers, physicians, architects, electricians, and other regulated occupations.
These workers may practice in Ontario for up to six months while completing registration with provincial regulatory bodies.
The healthcare sector is expected to benefit significantly. By easing administrative barriers for doctors and healthcare professionals trained elsewhere in Canada, Ontario aims to expand service capacity and reduce patient wait times.
For employers, this means faster access to skilled talent. For workers, it means fewer delays and a clearer path to interprovincial mobility.
Ontario Income Tax Changes for 2026
Ontario’s provincial income tax brackets and rates will be updated in 2026 as part of annual indexation and fiscal adjustments.
2026 Ontario Taxable Income Brackets
- Up to $53,891
- $53,891 to $107,785
- $107,785 to $150,000
- $150,000 to $220,000
- Over $220,000
2026 Ontario Tax Rates
- 5.05%
- 9.15%
- 11.16%
- 12.16%
- 13.16%
These rates apply only to the provincial portion of income tax and are in addition to federal taxes.
Ontario Surtax Remains in Place
Ontario will continue applying its two-tier surtax system in 2026, increasing effective tax rates for higher-income earners.
2026 Surtax Thresholds
- 20% surtax on basic provincial tax between $5,818 and $7,446
- 56% surtax on basic provincial tax above $7,446
As a result, marginal tax rates increase sharply once these thresholds are crossed, particularly affecting middle- and upper-income households.
Ontario Tax Reduction for Lower-Income Residents
Ontario’s non-refundable tax reduction remains unchanged and continues to benefit lower-income individuals and families.
2026 Reduction Amounts
- Basic reduction: $300
- Additional reduction for each dependent with a mental or physical impairment: $554
These credits are applied against provincial tax payable and can eliminate Ontario income tax entirely for some households.
New Pay Transparency Rules Take Effect
Major amendments to the Employment Standards Act, 2000 will take effect on January 1, 2026, changing how employers recruit and communicate with candidates.
Mandatory Salary Ranges
Employers with 25 or more employees must include expected compensation or salary ranges in public job postings. The range cannot exceed $50,000 between the minimum and maximum, unless the role pays more than $200,000 annually.
The aim is to reduce wage opacity and address pay inequities.
Disclosure of AI in Hiring
Job postings must also disclose whether artificial intelligence is used to screen or assess candidates, addressing concerns about transparency and algorithmic bias.
Limits on Candidate Ghosting
Employers must inform interviewed candidates of the outcome within 45 days of their final interview. This requirement does not apply to applicants who only submitted resumes or completed preliminary screening.
Expanded Fire Code and Carbon Monoxide Safety Rules
New Ontario Fire Code amendments will affect homeowners, landlords, tenants, and building owners starting January 1, 2026.
Carbon Monoxide Alarm Requirements
CO alarms will be required in more residential settings, including homes with:
- Fuel-burning appliances
- Fireplaces
- Attached garages
- Fuel-based heating systems located outside the residence
Alarms must be installed near sleeping areas and on every storey of the home.
Apartments and Condominiums
CO alarms will be required if units are near fuel-burning appliances, service rooms, garages, or receive air heated by fuel-burning systems elsewhere in the building. Public corridors heated by fuel-burning systems will also require alarms.
Responsibilities
Landlords must install, maintain, and test alarms annually and provide tenants with maintenance instructions. Tenants must report malfunctions promptly.
Ontario Public Service Returns to Full-Time Office Work
As of January 5, 2026, the Ontario Public Service and related agencies will return to five days per week of in-office work.
The government has positioned the change as aligning public sector practices with broader workplace norms. A phased transition began earlier, moving many employees from three to four in-office days before full implementation.
Toronto Indoor Temperature Standards Approved
Toronto has approved a new Indoor Temperature Standards bylaw taking effect June 1, 2026.
Apartment buildings without air conditioning must provide tenants with access to at least one cooled amenity space.
Key Rules
- Maximum temperature of 26°C
- Applies from June 1 to September 30
- Tenants must be informed of location and hours
Toronto Water and Waste Fees Increase
Toronto households will see higher municipal fees starting January 1, 2026.
Estimated Annual Solid Waste Fees
- Small bin: $317.85
- Medium bin: $385.86
- Large bin: $524.06
- Extra-large bin: $607.86
Water Rates
For an average household using 230 cubic metres annually, water costs will rise by about $40 per year, bringing total estimated charges to $1,118.
Federal Free Trade and Labour Mobility Act Comes into Force
January 1, 2026 also marks the implementation of the federal Free Trade and Labour Mobility in Canada Act under Bill C-5.
The law ensures that:
- Goods and services compliant with provincial or territorial rules meet comparable federal standards
- Workers licensed by provinces or territories can work in equivalent federal jurisdictions
What This Means Going Forward
Together, these changes reflect a clear policy direction: Ontario is prioritizing labour mobility, economic integration, transparency in hiring, public safety, and administrative efficiency.
At the same time, residents will face higher municipal costs, stricter compliance obligations, and evolving expectations around work arrangements.
January 2026 represents more than routine updates. It marks a structural shift that will influence daily life in Ontario for years to come.
