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

May 26, 2025

Ontario is permanently cutting 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.

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.

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.

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.

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