Bill 127 Original (PDF)
EXPLANATORY NOTE
The Bill amends the Taxation Act, 2007. Currently, section 6 of the Act sets out the rules for calculating the basic personal income tax for an individual during the taxation year, which is determined by multiplying different levels of the individual’s income by progressive tax rates. The amendments provide that, for every taxation year ending after December 31, 2026, the amount owing in respect of the part of an individual’s income that is ordinarily taxed at the lowest tax rate is $0 if the individual is under the age of 27 at the start of the taxation year.
This provision would be automatically repealed five years after Royal Assent unless the Assembly adopts a resolution stating that the provision should not be repealed. A new resolution would be needed every five years to prevent the automatic repeal.
Bill 127 2026
An Act to amend the Taxation Act, 2007 to reduce taxes for individuals who are under the age of 27
His Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
1 (1) Subsection 6 (1) of the Taxation Act, 2007 is amended by adding “Subject to subsection (1.1)” at the beginning.
(2) Section 6 of the Act is amended by adding the following subsection:
Exception for individuals under the age of 27
(1.1) For every taxation year ending after December 31, 2026, the amount that is calculated using the lowest tax rate under paragraph 1 of subsection (1) in respect of an individual’s taxation year is deemed to be $0 if the individual is under the age of 27 on the first day of the taxation year.
(3) Section 6 of the Act is amended by adding the following subsections:
Automatic repeal
(3) Subsection (1.1) is repealed on the fifth anniversary of the day the Fair Start for Young Workers Act, 2026 received Royal Assent unless the Assembly adopts a resolution stating that subsection (1.1) should not be repealed.
Ongoing need for resolutions
(4) If a resolution described in subsection (3) is adopted by the Assembly, subsection (1.1) is repealed on the next five-year anniversary of the day the Fair Start for Young Workers Act, 2026 received Royal Assent unless the Assembly adopts another such resolution in the five-year period prior to that anniversary, and this requirement continues to apply to every subsequent five-year anniversary of that day.
Transition
(5) If subsection (1.1) is repealed under subsection (3) or (4), subsection (1.1) continues to apply to the taxation year in which it was repealed.
Commencement
2 This Act comes into force on the day it receives Royal Assent.
Short title
3 The short title of this Act is the Fair Start for Young Workers Act, 2026.