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Ontario Auto Insurance Just Changed: What Every Driver Needs to Know Before July 1

  If you drive in Ontario, this affects you — starting July 1, 2026 , the biggest shake-up to Ontario's auto insurance system in decades is here. Nine benefits that were automatically included in every policy for years are now optional extras you have to pay for separately — or go without. The Ford government is calling it consumer choice. Critics are calling it a coverage cliff. Either way, Ontario drivers need to understand what just changed before their next policy renewal — because the default "basic" plan is now much leaner than what you're used to. From Standard Package to À La Carte Ontario's auto insurance has always included a bundle of Statutory Accident Benefits (SABs) — no-fault coverage that kicks in when you're hurt in a collision, regardless of who caused it. Think income replacement, caregiver support, funeral costs. They were simply part of the deal. That changes now. Starting July 1, 2026, only three categories of benefits remain mandatory in...
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The alternative minimum tax


 

The alternative minimum tax (AMT) is a secondary way for Canadians to calculate their income tax. It is often applicable when you have claimed a preferential tax deduction or credit, such as capital gains, dividend, or employee stock options.

Each year, your tax owing is calculated under the normal method, which considers the preferential tax credits and deductions. This number is then compared to a second calculation where you don’t receive these same credits and deductions, but your tax is calculated at a lower tax rate. For most instances, the normal calculation will result in more tax owing. When the second calculation results in a higher amount owing, you will pay this higher amount. The difference between the regular tax owing and the second calculation is the AMT. When you are subject to the AMT, this should be viewed as a prepayment of future tax. Over the next seven years, you can recover this amount paid against your regular income tax. In order to recover this AMT in the future, you would have to be taxable in future years, thus if you do not have taxable income in these years, this AMT will be lost.

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