Ontario matches feds’ tax perk for businesses on capital investments

Posted October 28, 2026 10:34 am.

Last Updated October 28, 2026 11:07 am.

TORONTO — Ontario is matching the federal government’s recent move to give businesses a tax break on capital investments.

Finance Minister Peter Bethlenfalvy made the announcement ahead of the Thursday’s fall economic statement.

Last year, Prime Minister Mark Carney and the federal government allowed businesses to immediately deduct 100 per cent of the cost of some investments, such as machinery, equipment and technology, which applied to about 15 per cent of the investment in capital costs.

Last month, Carney updated the measure, allowing two-thirds of assets to qualify.

Bethlenfalvy said Ontario’s measures would provide about $8 billion in relief that he says will be a boon to the country over the long term by attracting more businesses to the province.

He says this brings Ontario’s marginal effective tax rate to 3.6 per cent.

This report by The Canadian Press was first published Oct. 28, 2026.

Liam Casey, The Canadian Press

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