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

The Ontario government 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 seniors 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. This means people get their benefit earlier and more frequently than before. 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.

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 thesecredits 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
  If you pay rent or property tax, you 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
  If you live 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 your home. Northern Ontario means the districts of 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 $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 Senior Homeowners' Property Tax Grant

If you were 64 or older on December 31, 2011 and own your home, you may be able to get up to $500 to help with the cost of your property taxes.

You and your spouse or common-law partner cannot both qualify for this grant – only one of you can receive the money.

Ontario Guaranteed Annual Income System

This program helps guarantee a minimum annual income by providing low-income seniors with up to $83 per month. This money is in addition to federal Old Age Security Pension payments and the Guaranteed Income Supplement.

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. Many single people received three payment for a total of up to $300. The transition benefit was in addition to any Ontario Sales Tax Credit payments which lower-income individuals and 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 northern Ontarians may claim to reduce their Ontario 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 provide 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 enquiries related to the Ontario Child Care Supplement for Working Families or the Guaranteed Annual Income System, 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.