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Bill 127, Fair Start for Young Workers Act, 2026

Cerjanec, Rob

Bowman, Stephanie

Current status:

First Reading Ordered for Second Reading

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Original

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provision would be automatically repealed five years after Royal Assent unless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repealed.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

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) 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(1.1) is repealed on the fifth anniversary of the day the Fair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repealed.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(1.1) is repealed on the next five-year anniversary of the day the Fair Start for Young Workers Act, 2026 received Royal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

This Act comes into force on the day it receives Royal Assent.

Short

title

The

short title of this Act is the Fair Start for Young

Workers Act, 2026 .

Date Bill stage Event Outcome Committee

May 27, 2026

First Reading

Ordered for Second Reading

May 27, 2026

First Reading

Vote

Carried

First Reading

May 27, 2026

Carried

Ordered for Second Reading