The Tax Plan is Working: For Families

Ontario families and single people are receiving $12 billion in tax relief over three years as part of Ontario's tax reforms. The tax plan is delivering more support for families, creating jobs and helping the economy turn the corner.

  • Nine out of 10 Ontario income tax payers received a permanent, personal income tax cut.
  • 90,000 Ontario taxpayers with low incomes no longer pay Ontario personal income tax.
  • The Ontario Sales Tax Transition Benefit delivered three payments of up to $1,000 per family and up to $300 for single people. The benefit will help an estimated 6.6 million Ontario single people and families adjust to the HST.

Tax Credits and Benefits

You and your family could get money back by claiming a number of Ontario tax credits and benefits, like:

  • The Ontario Sales Tax Credit, which provides up to $265 a year for each person in a low- to moderate-income family.
  • The Ontario Energy and Property Tax Credit, which provides up to $917 to non-seniors and up to $1,044 to seniors to help with the sales tax on energy costs and property taxes.
  • The Ontario Clean Energy Benefit, which takes 10 per cent off monthly electricity bills for families, farms and small businesses.
  • The Children's Activity Tax Credit, which helps parents keep their kids active, from music and painting to sports and dance, with up to $51 per child and up to $102 per child with a disability.

Find out more about these credits and benefits or see the full list here.

Rebates and Exemptions and Lower Prices

Read more about how Ontario families are benefiting from rebates and exemptions and lower prices.

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Benefit payments

GST/HST Credit
Last: October 5, 2011
Next: January 5, 2012

Ontario Sales Tax Credit
Last: August 10, 2011
Next: November 10, 2011

Ontario Sales Tax Transition Benefit
Last: December 10, 2010
Final: June 10, 2011

How do the tax changes impact my family?

In the first full year of the HST, households with income up to $300,000 received, on average, an overall net saving. In the third year, households with income under $90,000 — representing over two-thirds of the households — will, on average, have a net saving.

The table below shows the average saving or cost to Ontario households from the HST, together with the personal income tax cut, tax credits and other relief measures. Two time periods are presented:

  • The first full year of the HST, when families and individuals receive two out of the three transition payments designed to assist individuals and families while businesses adjust their prices; and
  • The third full year of the HST, when the transition payments are no longer available.

Average Annual (Saving)/Cost by Household Income

        Year 1     Year 3[1]
  Per Cent of Households HST[3] Total Relief[4] Net (Saving)/Cost HST[3] Total Relief[5] Net (Saving)/Cost
Annual Income[2] (%) ($) ($) ($) ($) ($) ($)
$4,000–$20,000 12 225 (730) (510) 195 (455) (260)
$20,000–$30,000 10 290 (970) (680) 250 (620) (370)
$30,000–$40,000 10 360 (1,115) (755) 320 (690) (370)
$40,000–$50,000 9 420 (1,135) (715) 380 (680) (300)
$50,000–$60,000 8 480 (1,130) (650) 435 (640) (205)
$60,000–$70,000 7 530 (1,130) (595) 480 (605) (125)
$70,000–$80,000 6 580 (1,160) (580) 530 (605) (80)
$80,000–$90,000 6 630 (1,170) (545) 570 (605) (35)
$90,000–$100,000 5 685 (1,210) (520) 640 (625) 15
$100,000–$125,000 10 760 (1,290) (530) 715 (670) 45
$125,000–$150,000 7 855 (1,375) (520) 800 (715) 85
$150,000–$300,000 10 1,040 (1,220) (180) 985 (755) 230

[1]Year 3 figures use the same income tax and credit parameters as year 1 and do not take into account the expected income growth resulting from the plan. The HST estimates include additional home purchases and renovations from year 1 to year 3, while the number of households is held constant.

[2]Household income is the sum of pre-tax market income and includes provincial and federal transfers. Households with income below $4,000 or above $300,000 are not included due to sampling limitations.

[3]HST is net of pass-through of business savings. Year 1 includes the pass-through of two-thirds of business input tax credit savings as estimated in Professor Smart's study "The Impact of Sales Tax Reform on Ontario Consumers: A First Look at the Evidence" (2011). Year 3 assumes 90 per cent of business savings are passed through to consumers in lower prices.

[4]Includes the Personal Income Tax cut, Ontario Sales Tax Credit enhancement, Ontario Energy and Property Tax Credit enhancement, two of the three Ontario Sales Tax Transition Benefit payments, Northern Ontario Energy Credit, Children's Activity Tax Credit, and six months of the Ontario Clean Energy Benefit.

[5]Includes the Personal Income Tax cut, Ontario Sales Tax Credit enhancement, Ontario Energy and Property Tax Credit enhancement, Northern Ontario Energy Credit, Children's Activity Tax Credit, and a full year of the Ontario Clean Energy Benefit.

Note: Totals may not add due to rounding.

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