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.

Couples can claim amounts of up to $10,000 in eligible expenses each year. This limit would also apply to claims by different people who share a home.

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 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
  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.

Ontario Senior Homeowners' Property Tax Grant

If you were 64 years 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.

To receive this grant for 2012, you must file a personal income tax return for 2011, meet the income requirements and you must have paid Ontario property taxes in 2011.

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

Ontario Guaranteed Annual Income System (GAINS)

This program helps guarantee a minimum annual income to seniors by providing a monthly payment up to $83 per qualifying senior. This money in addition to the federal Old Age Security (OAS) pension and Guaranteed Income Supplement (GIS).

For January to March 2012, the guaranteed annual income is $16,265.76[1] for a single senior and $26,609.52[1] for a senior couple. Eligibility is based on tax return information the Ministry of Finance receives from Service Canada, which administers the OAS and GIS programs.

Ontario Sales Tax Transition Benefit

Many senior couples 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 seniors received three tax-free benefit payments for a total of up to $300. The transition benefit was in addition to any Ontario Sales Tax Credit payments which lower-income seniors 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 seniors may claim to reduce their Ontario taxes. Credits are based on factors such as age, dependent spouse or common-law partner, pension income, disability 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 the Ontario tax credit and benefit payments go to www.cra.gc.ca/benefits, or call the Canada Revenue Agency (CRA) at 1 877 627-6645.

For phone enquiries related to GAINS, please 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.