Ontario Permanently Cutting the Gas Tax and Taking Tolls Off Highway 407 East

As part of its plan to protect Ontario, the government is continuing to lower costs for hard-working families, support local businesses and put more money back into people’s pockets through its plan to permanently cut the gasoline and fuel tax rates, which would save households, on average, about $115 per year going forward. The government is also proposing to remove tolls from the provincially owned Highway 407 East, which is expected to save daily commuters an estimated $7,200 annually.

“I know that families and business owners are worried about rising costs, especially as U.S. tariffs threaten to raise the price of everyday essentials,” said Premier Doug Ford. “That’s why we’re cutting the gas tax permanently and taking tolls off Highway 407 East, and that’s why we’ll always keep looking for ways to put more money back into the pockets of Ontario families.”

To provide ongoing relief to households and businesses in Ontario, the government is introducing legislation through its 2025 Budget that would, if passed, make the cut to the gas and fuel tax rate permanent, keeping the provincial rates of tax at nine cents per litre. This permanent measure would support continued relief at the pumps, building on the $1.7 billion that households have saved since the government first announced temporary cuts to the gasoline and fuel tax rates in 2022.

“Ontario families have seen prices on everyday items go up over the last several years,” said Peter Bethlenfalvy, Minister of Finance. “To help Ontarians cope with the high cost of living and the impacts of the economic uncertainty caused by tariffs, we are continuing to take action to ease the pressure and do more to help lower costs for households.”

To help lower costs and fight gridlock, the government is introducing legislation that would, if passed, permanently remove tolls from the provincially owned section of Highway 407, from Brock Road to Highway 35/115, effective June 1, 2025. This is the last stretch of provincially owned tolled highway in Ontario and follows the government’s previous removal of tolls from Highways 412 and 418, and its recent legislation banning new road tolls on any public roadway in Ontario.

“Our government is making it easier and more affordable for Ontarians to get where they need to go, when they need to get there,” said Prabmeet Sarkaria, Minister of Transportation. “The measures announced today will not only help to reduce traffic and commute times, but they will help put money back in the pockets of hardworking families at a time when it matters most. This is another step in our work to protect Ontario by building a more efficient, affordable and accessible transportation network.”

The government is committed to keeping costs down for commuters. Additional initiatives the government has taken include the elimination of licence plate renewal fees and stickers and freezing fees for driver’s licences and Ontario Photo Cards, which combined with previous cuts to gas and fuel tax rates have saved individuals and families over $1.8 billion in the last year.

“Our government is focused on protecting jobs and reducing costs for families, as we stand up for Canada against U.S. tariffs,” said Stephen Lecce, Minister of Energy and Mines. “By permanently cutting the gas tax, we’re fulfilling our commitment to put more money back into the pockets of hardworking families, where it belongs.”

More information about the government’s plan to protect Ontario, grow our economy and make Ontario the most competitive jurisdiction in the G7 to invest will be included in the 2025 Budget, to be released on May 15, 2025.

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