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Ontario -> Budgets

Ontario COVID-19 Information and Support

Ontario Budgets

All tax measures are subject to legislative approval.

Ontario 2021 Budget - March 24, 2021

Projected deficits:

bullet$38.5 billion for 2020-21
bullet$27.7 billion to $35.6 billion for 2021-22
bullet$21.3 billion to $33.4 billion for 2022-23

Proposed Personal Tax Measures

bulletTemporary Refundable Senior's Home Safety Tax Credit for 2021, previously announced in Budget 2020
bulletCancelling scheduled wine tax increase, freezing beer tax rates
bullet20% enhancement to the 2021 Childcare Access and Relief from Expenses (CARE) tax credit.
bulletOntario refundable jobs training tax credit for 2021 only (Ontario Taxation Act, 2007, s. 103.0.4)
bulletan individual is eligible if:
bulletthey are resident in Ontario on Dec 31st, 2021, and
bulletthe Canada Training Credit limit of the individual for 2021 is greater than zero.
bulleteligible expenses are based on expenses that may be claimed in respect of the federal tuition tax credit (ITA s. 118.5(1)(a) and (d), but only for costs paid to an educational institution in Canada, and including examination fees to obtain a professional status, and licensing fees to be certified as a tradesperson.
bulletcredit is the lesser of $2,000 and 50% of the eligible expenses.
bulletwill be claimed on the 2021 tax return.

Proposed Business Tax Measures

bulletmake the Employee Health Tax (EHT) payroll exemption increase permanent.
bulletEHT exemption is indexed to inflation every 5 years, with next adjustment scheduled for 2024. This will be moved to January 1, 2029.
bulletdouble the threshold payroll amount beyond which employers are required to pay EHT instalments, to $1.2 million, starting in 2021.
bulletCultural Media Tax Credit Amendments
bulletExtension to deadlines for Ontario R&D Tax Credit (ORDTC)
bulletReduce Business Education Tax (BET) rates to 0.88% beginning in 2021
bulletProvide municipalities flexibility to target property tax relief to small businesses.
bulletConsider matching municipal property tax reductions.

There are many other measures in the budget - see Ontario Budget Table of Contents for all details.

Legislation:  Bill 269, Protecting the People of Ontario Act (BUDGET Measures), 2021 - Third Reading carried April 26, 2021.

News Release

Ontario Budget 2021 Details of Tax Measures and Other Legislative Initiatives

Ontario 2020 Budget - November 5, 2020

Action Plan re COVID-19 - March 25, 2020

 on Ontario website

The Ontario March 2020 Economic and Fiscal Update was released on March 25, 2020.

bullet Employer Health Tax (EHT) - temporary increase in exemption from $490,000 to $1 million for 2020.
bullet new 10% refundable Regional Opportunities Investment Tax Credit, available to eligible businesses that construct, renovate or acquire qualifying commercial and industrial buildings in designated regions of the province, providing up to $45,000 savings in the year.
bullet 5 month interest and penalty-free period for businesses to make payments for most provincially administered taxes.
bullet Guaranteed Annual Income System (GAINS) maximum payments doubled for 6 months beginning April 2020.
bullet Ontario Student Assistance Program (OSAP) - 6 months of loan and interest accrual relief (no loan payments March 30 to September 30), in coordination with the federal governments measures.

Many other measures - for complete details see above link and Ontario Action Plan

2019 Fall Economic Outlook and Fiscal Review November 6, 2019 - on Ontario website.

Tax Proposals:

Small business corporate income tax rate to be reduced to 3.2% from 3.5% starting January 1, 2020.

The small business (non-eligible) dividend tax credit rate will be reduced to 2.9863% from 3.2863% effective January 1, 2020.  See Ontario Dividend Tax Credit for Non-Eligible Dividends.  The 2020 Tax Rate Tables have been revised, as has the Basic Income Tax Calculator.

Reduce aviation fuel tax rate in the North to 2.7 cents per litre from 6.7 cents per litre.

See also: 

Annex: Details of Tax Measures

Bill 138, Plan to Build Ontario Together Act, 2019

Ontario 2019 Budget - April 11, 2019

2018 Fall Economic Outlook and Fiscal Review November 15, 2018 

Ontario 2018 Budget - March 28, 2018

Ontario 2017 Fall Economic Statement - November 14, 2017

Business/Personal Tax Measures:

bullet small business corporate income tax rate reduced from 4.5% to 3.5% effective January 1, 2018
bullet non-eligible dividend tax credit rate reduced to 3.2863% of the taxable dividend effective January 1, 2018.  However, Bill 177 (link below) legislative changes result in a rate of 3.1197%, which is what we are using in the Ontario tax rate tables.  The difference is due to the reduction in the gross-up rate for 2018, to 16%.
bullet The Apprenticeship Training Tax Credit (ATTC) is being eliminated for employers with apprentices who register in an apprenticeship program after November 14, 2017.  This is in conjunction with the announcement of the new Graduated Apprenticeship Grant for Employers (GAGE).

2017 Ontario Fall Economic Statement - on Ministry of Finance website

Bill 177, Stronger, Fairer Ontario Act (Budget Measures), 2017 was tabled on November 14, 2017 and received Royal Assent on December 14, 2017.

Ontario 2017 Budget - April 27, 2017

Ontario 2016 Budget - February 25, 2016

Ontario 2015 Budget - April 23, 2015

Above link is to Ontario Budget website.  See also Chapter 4: A Fair and Sustainable Tax System.

There are no changes to the personal income tax system.  The main tax-related provisions in the budget are:

bulletchanges to business tax supports including
bulletApprenticeship Training Tax Credit
bulletOntario Interactive Digital Media Tax Credit
bulletFilm and Television Tax Credits
bulletOntario Sound Recording Tax Credit
bulletparalleling Federal measures re the taxation of trusts and estates
bulletProvincial Land Tax reform

Ontario 2014 Budget - May 2, 2014

Ontario 2013 Economic Outlook and Fiscal Review - November 7, 2013

The Ontario government announced revisions to both eligible and non-eligible dividend rates.  Another change is that the Ontario surtax, starting in 2014, will be calculated before deducting dividend tax credits.  By doing so, all taxpayers get the same amount of dividend tax credit.  Previously, the surtax was applied after these tax credits were deducted, thus increasing the tax credits for high income earners by as much as 56%.

Ontario 2013 Budget - May 2, 2013

Ontario 2012 Budget - March 27, 2012

Ontario 2011 Budget - on Ontario Dept of Finance website

It is planned to combine 3 refundable tax credits - Ontario Sales Tax Credit (OSTC), Ontario Energy and Property Tax Credit (OEPTC) and Northern Ontario Entergy Credit (NOEC) into the Ontario Trillium Benefit (OTB).  These payments would be combined, and paid out on a monthly basis.

Previously planned corporate tax reductions will reduce the general corporate tax rate to 10% in 2013.  See our tables of corporate tax rates.

Ontario 2010 Budget - on ON Finance website

- no new income tax changes announced.

Ontario 2009 Budget

Ontario 2008 Budget

Ontario Tax Reductions for Businesses for 2007 and 2008

Ontario 2007 Budget

Revised: September 14, 2021

 

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