From 6pm on Friday, masks will no longer be required to be worn indoors except for public transport along with high-risk settings such as hospitals, aged care facilities or prisons.
Masks will still be required for disability care workers or in-home aged care providers, as well as staff and visitors to schools and early childhood centres.
Students in years 7 to 12 will still need to wear masks if they are in indoor areas at school.
Masks rules are also in effect at Canberra Airport or on domestic flights in or out of the capital.
The new rules will bring the ACT into line with similar measures in NSW and Victoria.
Health Minister Rachel Stephen-Smith said masks were still recommended to stop the transmission of COVID-19 in the community.
"We've seen strong compliance with the face mask mandate over recent months and I want to thank Canberrans for doing the right thing," she said.
"Canberrans are encouraged to continue wearing a face mask in public indoor settings, particularly where it may be difficult to maintain appropriate physical distancing."
The health minister has urged for workplaces to consider mask-wearing policies for staff, particularly those with customer-facing roles in areas like retail and hospitality.
The mask-wearing rules are not the only COVID measures to be easing in the capital on Friday.
From 11.59pm on Friday, anyone who tests positive to a rapid antigen tests must report their results to ACT Health and isolate for seven days.
Anyone who does test positive via a rapid test will be encouraged to notify their own close contacts.
From this weekend, organisers of events with more than 2000 attendees won't be required to seek an exemption if it is ticketed.
However, organisers of events with more than 5000 people will still need to submit COVID safety plans to be reviewed by health authorities.
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