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Wide Range Of Credits Helping Ontario Families

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Wide Range Of Credits Helping Ontario Families

McGuinty Government's Tax Breaks Put Money Into People's Pockets

Ministry of Finance

As part of its Open Ontario plan, the McGuinty government has enhanced existing or introduced new tax credits in 2010 that make it a little easier for hard-working Ontario families to manage their household costs, including:

  • The Children's Activity Tax Credit helps parents with the cost of enrolling their children in extra-curricular activities by allowing them to claim up to $500 in eligible expenses for a refundable credit of up to $50 per child or up to $100 per child with a disability. Parents can begin claiming this permanent credit for activities they paid for in 2010.
  • Ontarians can ring in the New Year knowing that the Ontario Clean Energy Benefit will give them 10 per cent off on their monthly electricity bills for the next five years.
  • The enhanced Ontario Energy and Property Tax Credit provides increased tax relief of up to $1,025 for over 740,000 seniors. 
  • The Ontario Senior Homeowners' Property Tax Grant offsets property taxes for low-to-middle income senior homeowners with up to $500 per year.
  • The Northern Ontario Energy Credit provides individuals with up to $130 per year and families, including single parents, with up to $200.  More than half of all northerners are eligible for assistance, making it a little easier during the harsh winter months.  They must apply by June 30, 2011 for the 2010 credit. 
  • The Ontario Sales Tax Credit provides low- to middle-income individuals and families with relief of up to $260 each year per person through quarterly payments.
  • The Ontario Child Benefit provides up to $1,100 annually per child in tax-free financial support for low-income families with children under the age of 18. The government has committed to increase the maximum benefit to $1,310 annually per child by December 2013.
  • The property tax classification of farm bunkhouses will change from residential to farm beginning January 1, 2011. Farmers with residences that house temporary workers will pay the farm property tax rate, which is 75 per cent lower than the residential rate.
  • All retirement homes as defined in the Retirement Homes Act, 2010 will be included in the residential property class beginning January 1, 2011. They will be taxed at the residential property tax rate, which is lower than the multi-residential rate in most municipalities.

In 2011, Ontarians will also continue to save from the permanent personal income tax cut that began in 2010 and saved Ontario income tax payers who benefited from it an average of $200.

Quick Facts

  • Over three years, the government will provide Ontarians with $12 billion in tax relief.
  • Ontarians have already received two of three cheques in 2010, the third coming in June 2011, which provides up to $1,000 per family or $300 per single person, helping them with the transition to the Harmonized Sales Tax.
  • Ontario Tax Plan for Jobs and Growth, which is part of the Open Ontario plan, cut income taxes for nine out of 10 income tax payers starting in 2010.
  • Ontario has regained 87 per cent of the jobs lost during the recession.

Quotes

“In the wake of a global economic downturn, Ontario's economy is improving, yet many Ontario families are still feeling anxious about their ability to make ends meet. Every little bit helps during these lean times.”

Dwight Duncan

Minister of Finance

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Business and Economy Government Rural and North Taxes and Benefits