The Ontario Tax Reduction program reduces Ontario income tax for lower income taxpayers. The program also provides additional tax relief for eligible individuals with dependent children or disabled/infirm dependants of any age.
Am I eligible?
You are eligible if you filed your income tax return, were resident in Canada at the beginning of the year and an Ontario resident on December 31 of the year.
If you had a spouse or common-law partner on December 31 of the year, only the spouse or common-law partner with the higher net income can claim the Ontario Tax Reduction for dependent children and disabled/infirm dependants.
You are not eligible if you paid Ontario Minimum Tax as calculated on Ontario form ON428.
How much tax can I save?
The amount of your Ontario tax reduction depends on the following:
- your income
- number of dependant children eligible for the federal Child Tax Benefit at any time during the year
- number of disabled or infirm dependants of any age, and
- other deductions or credits you may be able to claim.
You can obtain an estimate of your Ontario Tax Reduction amount by completing form ON428, included with your federal income tax return package.
Tip: If you claim a person as a dependent for federal income tax purposes, they also qualify for the Ontario tax reduction.
How to apply
The Canada Revenue Agency administers the Ontario Tax Reduction Program. You need to complete the ON428 Ontario Tax form included with your federal income tax return package.
Send the form with your completed tax return to the Canada Revenue Agency. You do not need to include documents to support your claim for the Ontario Tax Reduction.
When will I receive this benefit?
You will receive the benefit of the Ontario Tax Reduction at the time of filing your income tax return, reducing or eliminating the Ontario income tax payable by you.
This is not a refundable benefit.
Visit the Canada Revenue Agency website