Tax Credits and Benefits

The Ontario government provides several tax-free credits and benefits to families – including couples, single parents and seniors.

Did you know?

You must file your personal income tax return to receive these credits and benefits – even if you did not earn income.

Proposed Healthy Homes Renovation Tax Credit

Ontario recently proposed a new tax credit called the Healthy Homes Renovation Tax Credit. If passed, this permanent, refundable tax credit of up to $1,500 per year would help seniors with the cost of eligible home renovations that improve accessibility or help them to be more functional or mobile at home. It could be claimed by senior homeowners and tenants, and people who share a home with a senior relative.

Ontario Trillium Benefit

Low- to moderate-income Ontarians can now get money every month to help as the bills come in. Starting in July 2012, the Ontario Sales Tax Credit, the Ontario Energy and Property Tax Credit and the Northern Ontario Energy Credit payments will be combined into a single payment, called the Ontario Trillium Benefit, which will be paid monthly. This means recipients will get their benefits earlier and morefrequently than before.

Eligible Ontarians must file their income tax return each year – even if they don't have any income to report – in order to apply for the Ontario Trillium Benefit. You must qualify for at least one of these credits to receive the Ontario Trillium Benefit:

• Ontario Sales Tax Credit
  Lower-income families can get up to $273[1] between July 2012 and June 2013 for each member of the family to help with the sales tax they pay on the things they buy.
• Ontario Energy and Property Tax Credit
  People who pay rent or property tax may be able to get up to $946[1] between July 2012 and June 2013. Seniors can receive up to $1,078[1] during the same time period.
• Northern Ontario Energy Credit
  In Northern Ontario, eligible families may qualify for up to $210[1] between July 2012 and June 2013 to help with the higher cost of heating their homes. Eligible districts include Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay and Timiskaming.

Children's Activity Tax Credit

If you paid fees to register your or your common-law partner's child in a qualifying children's activity program – such as painting classes or organized sports – you can receive up to $52.60[1] per year for each child under 16. You can also receive up to $105.20[1] per year for a child with a disability who is under 18.

Ontario Child Benefit

If you have children under 18, you can get up to $1,100 per child each year ($91.66 per child each month).

Beginning July 2011, each parent in a shared custody arrangement receives the Ontario Child Benefit every month. If eligible, parents receive monthly payments equal to 50 per cent of the amount they would have received under the six-month rotational schedule.

Ontario Child Care Supplement for Working Families

Lower-income working families with children under age seven (born before July 1, 2009) may qualify for a tax-free monthly payment. Single parent families can get up to $210 a year per child.

The Ministry of Finance sends out pre-printed personalized applications each year to families that qualify based on information received from the Canada Revenue Agency (CRA).

Ontario Sales Tax Transition Benefit

Many families in Ontario received three tax-free Ontario Sales Tax Transition Benefit payments in June 2010, December 2010 and June 2011 for a total of up to $1,000. The transition benefit was in addition to any Ontario Sales Tax Credit payments which lower-income families may have been eligible for when they filed their 2009 and 2010 personal income tax returns.

The deadline to be eligible for the first two Ontario Sales Tax Transition Benefit payments has now passed. However, if you did not receive the third and final payment, you may still apply by filing your 2010 income tax return by June 30, 2012.

Non-Refundable Tax Credits

Ontario also provides a number of non-refundable tax credits that eligible families may claim to reduce their provincial taxes. Credits are based on factors such as age, dependent spouse or common-law partner, pension income, disability, tuition and education fees and medical expenses.

Need More Info?

The personal income tax and benefit package for Ontario residents provides tax packages for the current and prior years.

For a complete list of Ontario tax credits and benefits, visit ontario.ca/finance.

If you have questions about your Ontario tax credit and benefit payments, go to www.cra.gc.ca/benefits or call the CRA at 1 877 627-6645.

If you have questions about the Ontario Child Benefit, call the CRA at 1 800 387-1193.

For questions related to the Ontario Child Care Supplement for Working Families, call the Ministry of Finance at 1 866 ONT-TAXS (1 866 668-8297).

Tax Filing Assistance

Need a hand to prepare your tax return? There are several ways to file your personal income tax return for free.

If you are unable to prepare your income tax and benefit return yourself, the Community Volunteer Income Tax Program may be able to help you.

If you have questions about the volunteer tax preparation clinics call the CRA's individual income tax enquiries line at 1 800 959-8281.