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Ontario -> Budgets

Ontario COVID-19 Information and Support

Ontario Budgets

All tax measures are subject to legislative approval.

2022 Ontario Budget - April 28, 2022

Projected deficits:

bullet2021-22 $13.5 billion
bullet2022-23 $19.9 billion
bullet2023-24 $12.3 billion
bullet2024-25 $7.6 billion

From the Ontario website:

Complete 2022 Budget

Annex: Details of Tax Measures and Other Legislative Initiatives

Bill 126, Plan to Build Act (Budget Measures), 2022 - April 28, 2022

Personal Tax Measures

bulletEnhancement to LIFT Credit effective January 1, 2022:
bulletMaximum benefit increased from $850 to $875
bulletPhase-out rate reduced from 10% to 5%
bulletIndividual income range for benefit reduction increased
bulletwas $30,000 to $38,500
bulletwill be $32,500 to $50,000
bulletFamily income range over which benefit is reduced increased
bulletwas $60,000 to $68,500
bulletwill be $65,000 to $85,000
bulletOntario Seniors Care at Home Refundable Tax Credit effective January 1, 2022
bulletCredit of 25% of claimable medical expenses up to $6,000, for a maximum credit of $1,500
bulletReduced by 5% of family net income over $35,000
bulletFully phased out by at most $65,000
bulletFamily net income test is same for singles and couples
bulletCredit is in addition to the non-refundable federal and Ontario 
bulletWill be based on medical expenses claimed for the existing Ontario Medical Expense Tax Credit (METC)
bulletEligibility requirements:
bulletAge 70+ in the year, or have a spouse or common-law partner age 70+ in the year; and
bulletResident in Ontario at the end of the tax year

Business Tax Measures

bulletFilm and Television Tax Credits Extended to Online Productions
bulletSee above link for details - further information to be provided in the fall.
bulletBook Publishing Tax Credit Updated
bulletRequirement  for a literary work to be published in an edition of at least 500 copies of a bound book, which was temporarily removed for the 2020 and 2021 tax years, will be permanently removed for the 2022 and subsequent tax years.
bulletSimplifying Ontario Computer Animation and Special Effects Tax Credit
bulletExtending the Temporary Enhancement of Regional Opportunities Investment Tax Credit
bulletExtending for 1 year to December 31, 2021
bulletTime-Limited Relief for Electricity Distribution Sector Extended
bulletExtending by 2 years until December 31, 2024

Measures Prior to the 2022 Budget

bulletCutting Gas and Fuel Taxes Temporarily
bulletEffective July 1, 2022 until December 31, 2022
bulletGas tax reduced by 5.7 cents per litre
bulletFuel tax reduced by 5.3 cents per litre
bulletStrengthening the Non-Resident Speculation Tax (NRST)
bulletEffective March 30, 2022 via changes to the Land Transfer Tax Act
bulletIncrease rate from 15% to 20%
bulletExpanded province-wide instead of only the Greater Golden Horseshoe Region

2021 Ontario Economic Outlook and Fiscal Review - November 4, 2021

See 2021 Economic Outlook and Fiscal Review on the Ontario website.

Annex: Details of Tax Measures and Other Legislative Initiatives - for complete details

Legislation

bulletBill 43, Build Ontario Act (Budget Measures), 2021 - Taxation Act, 2007 is Schedule 21

Personal Tax Measures

bulletOntario Refundable Staycation Tax Credit for the 2022 tax year only, maximum credit of $200 for an individual or $400 for a family
bulletOntario Refundable Jobs Training Tax Credit to be extended by one year to 2022.
bulletOntario Refundable Seniors' Home Safety Tax Credit to be extended by one year to 2022.

Property Tax Measures

bulletBrownfields Financial Tax Incentive Program (BFTIP) - Extend the period for matching provincial education tax assistance from 3 to 6 years for business developments and 10 years for residential developments, streamline administrative processes.
bulletOn-farm business property tax subclass providing reduced tax rate - increase the assessment threshold from $50,000 to $100,000.  While the province will apply a reduced business education tax rate to the increased threshold, municipalities will have the option to maintain the current $50,000 threshold.

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)

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:

bulletBill 269, Protecting the People of Ontario Act (Budget Measures), 2021 - Royal Assent April 27, 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: April 28, 2022

 

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