Ontario will be seeing new laws and regulations starting in the new year. From increased highway tolls to lower daycare fees, here’s a look at some of the most significant changes taking effect in 2025.
Increased fees on the 407 ETR
For the first time in five years, 407 ETR fees will be increasing in 2025. Frequent users of the 407 ETR will notice higher costs and a revamped toll system starting Jan. 1.
The highway operator is implementing a new rate schedule that divides the highway into 12 toll zones, up from the current four. In the initial announcement posted by 407 ETR, it says this new adjustment is to better manage traffic volumes and flow by setting different toll rates for each section.
Additionally, there will be new classifications for drivers based on the make and size of the vehicle they drive.
Light vehicle tolls will increase by three to 14 cents per kilometre, depending on the time and zone. The transponder lease fee is also rising to 29.50 plus tax per year.
Toronto’s nightlife zoning changes
Toronto is updating licensing and zoning rules for bars, restaurants and nightclubs. Starting in January, the city will introduce new licensing and zoning bylaws aimed at modernizing operations for restaurants, bars and entertainment venues.
Key changes include new licensing categories to clarify business types, with some existing licences retired or merged.
These changes will also allow entertainment establishments and nightclubs to operate in most commercial zones, in an effort to reduce the concentration of venues in the downtown core.
However, nightclubs will need to be located in non-residential buildings and operate on the first floor or in a basement.
Higher waste and water fees
Residents in Toronto will see increased fees for waste and water services in the new year. The city has announced a 3.75 per cent fee hike to help fund waste management, water treatment and infrastructure projects.
The fees will be broken down by size, with a small bin costing an extra $11.07 a year, a medium bin costing $13.44 more a year, a large bin adding an extra $18.26 and an extra large costing an extra $21.18 annually.
As for water fees, for an average household using 230 cubic metres of water per year, the 3.75 per cent increase equates to a rise of $39 yearly, for a total annual cost of $1,078 in 2025, according to the city’s website.
Lower child-care fees
Parents in Ontario will soon see relief in child-care costs. As part of the Canada-wide Early Learning and Child Care (CWELCC) system, fees will be capped at $22 per day for children under six in CWELCC programs.
The Ontario government estimates this change will save families nearly $300 million in 2025.
Additionally, the province will be shifting to a cost-based funding approach to streamline funding and ensure costs reflect actual operations rather than the previous revenue replacement model.
New rule to stop renovictions
Starting July 31, 2025, landlords in Toronto must apply for a rental renovation licence before evicting tenants for renovations. This bylaw aims to stop unfair “renovictions,” where tenants are evicted under false claims to raise rents.
Landlords must provide permits, pay a $700 fee, notify tenants and offer compensation if tenants choose not to return.
Tenants receiving an N-13 can contact the city to confirm compliance.
Updates to Ontario Building Code
The new Ontario Building Code comes into effect Jan. 1, with a three-month grace period extending until March 31 for ongoing designs.
The revised code is designed to align more closely with the National Construction Codes by eliminating more than 1,700 technical variations.
The updated building code will focus on enhancing building safety and quality while reducing regulatory burdens for the construction industry to help accelerate housing development.
As the new year begins, Ontarians can expect to see the new changes take effect across the province.