Ontario Tax Reduction

The Ontario Tax Reduction reduces or eliminates Ontario income tax payable for lower income taxpayers.

Do I qualify?

You may qualify if you:

  • were resident in Canada at the beginning of the year, and
  • were 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 person with the higher net income can claim the Ontario Tax Reduction.

You cannot claim the reduction if you paid Ontario minimum tax - refer to line 48 of form ON428.

How much tax can I save?

The amount of your Ontario tax reduction depends on:

  • your income tax payable (before the tax reduction)
  • the number of dependant children 18 years and under, and
  • the number of dependants of any age with a mental or physical infirmity.

How do I get the Ontario Tax Reduction?

You need to claim your reduction on your personal income tax and benefit return. To do this, you will need to complete form ON428.

Send the form with your completed return to the Canada Revenue Agency. You do not need to include documents to support your claim.

Download form ON428, Ontario Tax

Get your General Income Tax and Benefit package from the Canada Revenue Agency

If you need to make a change to a return that has already been sent to the Canada Revenue Agency, do not file another return. You should wait until you receive your notice of assessment and then request to change your return.

More about how to change your return

Divorce or separation

If you and your spouse separated this year, the parent receiving the federal child tax benefit should claim the reduction for the children.

If both parents receive the federal child tax benefit in the year, the parent receiving the higher amount of the federal child tax benefit should claim the reduction for the children.

If both parents receive equal amounts of the federal child tax benefit in the year then the parent with the lower income should claim the reduction for the children.

Claiming children as dependants

You cannot claim a reduction for children who became eligible dependants of another individual by December 31 of the year.

If an eligible child turns 18 years old during the year (or dies during the year) you can still claim the reduction for that child.

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