Small businesses across Ontario are getting some relief following a cut to the corporate income tax rate in the 2026 provincial budget.
Norah Fountain, executive director of the Muskoka Lakes Chamber of Commerce, said they are pleased to see the small business tax cut, something both they and the Ontario Chamber had been advocating for, as a way to reduce business operating costs.
The province is proposing to reduce the Ontario small business corporate income tax rate from 3.2 per cent to 2.2 per cent, effective July 1. By cutting the rate by more than 30 per cent, the province said over 375,000 Ontario small businesses would benefit from an additional $1.1 billion in tax relief over the next three years.
Fountain said tourism funding remains stable, but there has been no shift toward recognizing it as economic infrastructure, which is “particularly important in Muskoka.”
She also said they hope communities can access the province’s rural infrastructure funding in “any meaningful way.”
According to the budget, the province will provide $400 million in 2026 to help 423 small, rural, and northern communities renew and rehabilitate critical infrastructure such as roads, bridges, and water systems.
“It could open up real opportunities if our municipalities can access it,” she said.
Jaden Hollingshead, executive director of the Bracebridge Chamber of Commerce, said they are pleased to see the proposed Northland Rideshare Pilot.
“This is going to allow rideshare companies to more easily expand in Muskoka. This has been a big advocacy priority for the Bracebridge Chamber, and it speaks directly to the transportation needs of communities like ours,” he said.
In the budget, the province states that it plans to engage with rideshare operators, the taxi sector, and municipalities to explore standardizing rideshare guidelines across Ontario, beginning with a proposed pilot framework along the Northlander corridor to support opportunities in communities along the route.
Halley Clover, executive director of the Huntsville/Lake of Bays Chamber of Commerce, said the budget reflects a continued focus on infrastructure, housing, and economic stability, which “are all important priorities for our Muskoka region.”
“We’re always looking for stronger direct support for small businesses, which is the backbone of our economy up here,” she said.
However, Clover, Hollingshead and Fountain all said they would like to see more targeted measures that directly support small and seasonal businesses, particularly in the tourism sector.
“We’re going to continue to focus on supporting our businesses through advocacy, networking, and economic development,” said Clover. “This includes expanding regional partnerships, advancing workforce development efforts, delivering programs that help businesses grow and adapt because it’s a changing world very quickly around here.”
