Ontario plans to permanently cut gas tax, remove tolls from Hwy. 407 East

The province of Ontario will introduce legislation to permanently cut gasoline and fuel tax rates and remove tolls from the provincially-owned section of Highway 407 East.

In a release Tuesday, the province said the legislation would be part of the 2025 budget, which will be introduced on Thursday, May 15.

The gas tax cut, which would keep the provincial rates of tax at nine cents per litre, would save Ontario households about $115 per year on average, while the Highway 407 East toll removal would save daily commuters an estimated $7,200 a year, the province projected.

Ontario first temporarily cut the gasoline tax rate by 5.7 cents per litre and the fuel (diesel) tax rate by 5.3 cents per litre on July 1, 2022, and has extended the cuts four times before seeking to make it permanent.

Tax rates for leaded gasoline or aviation fuel will remain unchanged.

If passed, the Highway 407 legislation would permanently remove tolls on Highway 407 from Brock Road to Highway 35/115, effective June 1, 2025.

“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,” Premier Doug Ford said in a release.

“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.”