Several new big changes are on the horizon for Ontario as multiple new laws and regulations are set to kick in starting next month.
The updates will have direct impacts on alcohol producers, retailers, renters, and particularly landlords undertaking renovations. From landmark bylaws to tax rate cuts, here are all the major changes you should be aware of.
These are all the new laws and rules that are coming into effect in Ontario in August 2025.
Spirits basic tax rate
Spirits taxes specifically apply to spirits made by Ontario spirit manufacturers and sold from a distillery retail store in the province. The government is introducing legislation that would, if enacted, amend the Liquor Tax Act, 1996, to reduce the spirits basic tax from 61.5 per cent to 30.75 per cent, starting on Aug. 1.
Cutting basic tax and LCBO mark-up rates
Taxes on beer and the LCBO mark-ups on beer are composed of the beer basic tax/mark-up, the beer volume tax/levy, and the environmental tax/levy on non-refillable containers in which the beer is sold.
Beer produced by microbrewers benefits from a basic beer tax/mark-up rate that is lower than the basic beer tax/mark-up rate applied to beer made by other manufacturers.
The provincial government is introducing legislation that would amend the Liquor Tax Act, 1996, to further reduce the beer basic tax rates applicable to beer made by Ontario microbrewers.
This would reduce the rates from 35.96 cents per litre to 17.98 cents per litre for draft beer and from 39.75 cents per litre to 19.88 cents per litre for non-draft beer, starting on Aug. 1, 2025.
Cutting LCBO mark-up rates for cider and ready-to-drink beverages
Along with the other changes, the basic mark-up rate applied by the LCBO to cider would be reduced from 60.6 per cent to 32 per cent, effective Aug. 1, and the basic mark-up rates applied to certain wine-based and spirit-based ready-to-drink beverages would also be reduced.
Rates applicable to wine-based ready-to-drink beverages that do not have an alcohol-by-volume content of greater than 7.1 per cent would be reduced from 60.6/64.6 per cent to 48 per cent, and the mark-up rates applicable to spirit-based ready-to-drink beverages that do not have an alcohol-by-volume content of greater than 7.1 per cent would be reduced from 68.5/96.7 per cent to 48 per cent.
‘Renoviction’ bylaw
Although this bylaw comes into effect the day before the start of the month, its timing makes it more applicable to August than July.
Last year, Toronto City Council adopted a landmark Rental Renovation Licence bylaw in an effort to prevent bad-faith evictions and protect tenants from “renovictions,” a term that applies to situations in which a landlord refuses to allow a tenant to return post-renovation, illegally raises the rent on a returning tenants, or does not undertake major renovations after evicting the tenant(s).
The bylaw officially comes into effect on July 31, 2025, and requires landlords to obtain a licence before beginning repairs or renovations that require tenants to move out of their rental units under the provincial N13 process.
To obtain a licence, landlords must follow the bylaw requirements, which include notifying tenants, providing them with accommodation or compensation plans, and offering them the option to return after the renovations are complete.
City inspectors are set to monitor compliance with the bylaw throughout the renovations, and if non-compliance is found, landlords could be subject to hefty penalties. Fines range from $1,000 for failure to submit a licence application within seven days of issuing an N13 notice to $100,000 for evicting tenants without completing renovations or failing to follow the approved plan.