Ontario Liberals announce tax cuts for middle class families as part of election platform

The Ontario Liberal Party is pledging to reduce the income tax rate for middle class families and eliminate provincial sales tax on hydro bills, if they win in the 2026 election.

The party's proposal would see Ontario's personal income tax rate for those making between $51,446 and $75,000 reduced by two per cent, from the current 9.15 per cent to 7.15 per cent. 

A party spokesperson said those earning just more than that would also benefit from the plan. Someone earning $85,000 in taxable income, for example, would pay the lower rate on their income between $51,446 and $75,000, and the 9.15 per cent rate on their earnings beyond that.

They estimate this would save the average family about $950 a year. 

Ontario Liberal Leader Bonnie Crombie said Tuesday they also promise to slash the provincial component of HST on residential heating and hydro bills, which could save households about $200 a year. 

"That is real and ongoing relief for you and your family," she said at Tuesday's announcement. 

"It's real money back in your pocket to help you afford groceries, to buy your child a new winter coat or pay for overdue repairs to your home or to your car." 

Crombie said the Liberal Party would pay for these tax cuts by putting an end to Premier Doug Ford's practice of cutting "shady deals," pointing to the Ontario Place redevelopment and Greenbelt controversy as examples. 

This is one of the party's first major policy announcements in the lead-up to the 2026 election. Ford has not ruled out calling an early election next year. 

Ford suggests Liberals would raise taxes 

At a separate announcement Tuesday morning, Ford argued the Liberal leader would actually raise taxes for Ontarians if elected premier, calling her "the carbon tax queen," repeating a line from ads the Progressive Conservatives ran earlier this year suggesting she championed the policy when she was a federal Liberal MP. 

"It's a very clear choice to the people of Ontario, it's tax you to death under Bonnie Crombie, or make sure you vote for the PCs and we'll put money back in your pocket," Ford said.

He said his plan to send rebate cheques to Ontarians would be more beneficial than the Liberal's proposed tax cuts. 

Crombie has said that she would not introduce a carbon tax if she's elected premier.

Green Party Leader Mike Schreiner said he believes making housing more affordable is the best way to make life more affordable for people in Ontario. 

"Tinkering around the edges is not going to solve the affordability crisis people in Ontario are facing," he said via email.

"People are struggling to pay their rent, put food on the table. To solve this we need to address the root causes of the cost of living crisis, especially when it comes to housing."