New laws and rules coming to Ontario in 2026

With the start of 2026, multiple new laws and regulations in Ontario will take effect that will impact taxpayers, homeowners, tenants, and employers.

The Ontario government, City of Toronto, and federal government will all be introducing new rules in 2026, and here are some of the ones that you should be aware of.

These are the new laws and rules coming to Ontario next year.

Federal tax bracket changes

New tax changes will take effect in 2026 and affect how much income you take home after deductions. The Canada Revenue Agency (CRA) revealed the new federal income tax brackets for 2026, which have been adjusted to account for inflation.

The CRA says the inflation rate used to index tax brackets next year will be two per cent, reflecting lower inflation compared to previous years. For comparison, the inflation adjustment was 2.7 per cent in 2025, 4.7 per cent in 2024, and 6.3 per cent in 2023.

The updated tax bracket thresholds and amounts tied to non-refundable tax credits will officially take effect on Jan. 1, 2026. Changes to federal benefits, including the GST credit, the Canada Child Benefit, and the Child Disability Benefit, will take effect on July 1, 2026.

The amount of federal income tax you pay depends on your annual earnings:

• Income up to $58,523 will be taxed at 14 per cent
• Income from $58,523 to $117,045 will be taxed at 20.5 per cent
• Income from $117,045 to $181,440 will be taxed at 26 per cent
• Income from $181,440 to $258,482 will be taxed at 29 per cent
• Income of $258,482 and over will be taxed at 33 per cent

Public service returns to the office

Back in August, Minister Caroline Mulroney announced that Ontario public service workers were being instructed to return to the office full-time just after the new year.

Starting Jan. 5, 2026, the Ontario Public Service and its provincial agencies, boards, and commission public bodies will return to the office full-time.

"The government has been closely monitoring the evolution of in-workplace standards for public and private sector organizations. The return to a five days per week in-workplace standard represents the current workforce landscape in the province and it reinforces our commitment to reflecting the people and businesses we serve across Ontario," Mulroney said.

The provincial government says over half of the Ontario Public Service was already required to attend the workplace full-time.

In October, employees who had already been attending the workplace for a minimum of three days per week had their attendance increased to four days as part of a gradual transition period to the full-time in-office standard, which will be effective in January.

Indoor temperature standards bylaw

Toronto City Council has approved a new bylaw requiring apartment buildings without air conditioning to provide tenants with access to a cooled amenity space during the summer.

The new bylaw, which comes into effect on June 1, 2026, replaces the city's existing heating bylaw with a new Indoor Temperature Standards bylaw.

Under the new rules, apartment buildings with at least one existing amenity space (and where cooling is not provided in rental units) will be required to maintain a temperature of no more than 26 degrees C in at least one shared space between June 1 and Sept. 30.

Landlords must inform tenants about the location and hours of the cooled amenity spaces. In July, Municipal Licensing and Standards will propose a maximum temperature bylaw for rental units.

Pay transparency laws

Starting Jan. 1, 2026, updates to the Ontario Employment Standards Act, 2000 (ESA) will require employers in the province to adjust their hiring practices.

Under the new rules, companies with 25 or more workers must disclose the expected compensation or salary range in a public job posting, with the mentioned pay range being no broader than $50,000 (only jobs where the top end of the range exceeds $200,000 per year are exempt).

Employers must also mention in job postings if artificial intelligence (AI) is used to screen or select applicants. The province will also require companies to follow up with every candidate who has been interviewed for a particular role, in an effort to reduce "candidate ghosting."

Candidates must be notified either in person or in writing of the outcome of their application within 45 days of their final interview. This new rule won't apply to candidates who were only screened and submitted resumes but did not interview for the role.

Ontario Fire Code changes

Starting Jan. 1, 2026, strict carbon monoxide safety rules will come into effect in Ontario and will expand where CO alarms are required in homes and rental units.

If you're a homeowner, you’ll be required to install a CO alarm if you have a fuel-burning appliance, fireplace, attached garage, or a property that's heated by a fuel-burning appliance that's not contained within your residence.

You must also install CO alarms in several locations throughout your house, including adjacent to each sleeping area and on every storey of your home (even on those that don't have sleeping areas).

Stringent carbon monoxide alarm rules are coming to Ontario in 2026 that will impact all types of properties, including apartments and condos. Photo: Fareen Karim.

For apartments and condos, a CO alarm must be installed if your unit has a fuel-burning appliance or fireplace, your building has a service room, and your unit is located above, below, or beside them room, the building has a garage, and your unit is located directly above, below, or beside it, or if your unit is heated by air from a fuel-burning appliance that's not contained within your unit. 

Even in these types of properties, a CO alarm must still be installed adjacent to each sleeping area, on every storey of your unit, and in public corridors of the building if they are heated by air from a fuel-burning appliance. 

Landlords will be responsible for installing and maintaining CO alarms in their rental units, and building owners will be responsible for complying with the updated requirements. Landlords must also test the alarms annually and provide tenants with a copy of the alarm's maintenance instructions. 

If you're a tenant, you'll be responsible for notifying your landlord of any issues with the CO alarm(s) in your unit. 

"As of Right" rules

This month, the provincial government revealed that it's embarking on a plan to uncover the province's full economic potential, with a central component of this mission being the implementation of mutual recognition of goods and services from other reciprocating Canadian jurisdictions. 

"By implementing mutual recognition under the Ontario Free Trade and Mobility Act, we're moving at speed and encouraging a pan-Canadian pivot to mutual recognition, which will unlock new domestic markets for Ontario businesses," said Stephen Crawford, Minister of Public and Business Service Delivery and Procurement.

"This means less paperwork and lower costs, faster approvals and market entry, and more customers across Canada for Ontario‑made products and services. Our Team Canada approach accelerates growth and jobs while keeping clear rules in place for safety and for how goods are sold and used." 

Under the plan, Ontario will work to streamline labour mobility so workers from other parts of Canada can work and live in the province. This means that qualified engineers, doctors, architects, and electricians will be able to practice their profession in Ontario for up to six months while completing registration with their regulatory body. 

Starting Jan. 1, 2026, Canadians in certified professions will be able to start working in Ontario within 10 business days, "once a regulator confirms credentials and requirements." 

The provincial government says "As of Right" rules will also help strengthen Ontario's healthcare workforce by making it easier for skilled professionals to work in the province, and help patients gain faster access to care. 

Changes to recycling collection in Toronto

The City of Toronto will no longer be managing recycling for houses, schools, multi-residential buildings, long-term facilities, and retirement homes starting on New Year's Day.

The City will no longer be managing recycling for houses, schools, multi-residential buildings, long-term facilities, and retirement homes starting Jan. 1. Photo: Elena Berd/Shutterstock.com.

Toronto’s recycling program will be switched over and managed by Circular Materials, which is the administrator of the common collection system and a national not-for-profit organization. 

The City will continue to manage recycling for charities, institutions, divisions, agencies, religious organizations, corporates, current commercial customers, parks, and other public spaces. 

Increased water and waste fees 

In December, Toronto City Council approved a 3.75 per cent interim increase to solid waste management services, as well as water rates and fees. 

The interim fees and rates will take effect starting Jan. 1, 2026, but will be officially finalized throughout the 2026 operating and capital Budget process.

Under the increases, the estimated annual solid waste fees for single-family households in 2026 will be $317.85 for small bins (increase of $11.49); $385.86 for medium bins (increase of $13.95); $524.06 for large bins (increase of $18.94); $607.86 for extra large bins (increase of $21.97). 

For the average household that uses 230 cubic metres of water every year, the 3.75 per cent increase will drive up costs by $40 annually, for a total estimated cost of $1,118 in 2026.

Free Trade and Labour Mobility in Canada Act

In June, the Free Trade and Labour Mobility in Canada Act was introduced as part of Bill C-5 and provides a framework to reduce the burden of federal rules that pertain to internal trade across provinces and territories. 

The Act comes into effect on Jan. 1, 2026, and ensures that a service or good produced, used, or distributed in line with the requirements of a province or territory will be recognized as meeting comparable federal requirements.

For example, a washing machine that meets Ontario's energy efficiency standards will also meet the comparable federal standards, and a worker licenced or certified by a province/territory will be able to work in a comparable occupation in a federal jurisdiction.