new rebate of NRST re purchase of a residential property that has been
repurposed for industrial use, for conveyances of property occurring on
or after November 6, 2025.
Taxation Act, 2007 new section 103.0.7 to implement the Ontario
fertility tax treatment credit
Projected Surpluses / (Deficits)
2024-25 ($6.0 billion)
2025-26 ($14.6 billion)
2026-27 ($7.8 billion)
2027-28 $0.2 billion
Personal Income Tax Measure:
Refundable Fertility Treatment Tax Credit proposed, which would
provide a tax credit of 25% of eligible expenses up to $20,000, for a
maximum tax credit of $5,000 per year. The fertility treatment expenses
could be claimed as the refundable tax credit as well as part of the
non-refundable medical expense tax credit.
one-time $200 taxpayer rebate to eligible Ontario tax filers who meet
certain requirements.
one-time $200 taxpayer rebate made in respect of each child under age
18 for whom the Ontario family receives the Canada Child Benefit (CCB)
for 2024.
lowering
the Ontario additional tax for minimum tax purposes (AMT) from 33.67% to
24.63%, starting with the 2024 tax year. To accomplish this, their formula
is changing from their lowest provincial tax rate / Federal lowest
provincial tax rate to their lowest provincial tax rate / 20.5%, which is
the % used in the revised Federal AMT calculation.
no personal or corporate income tax changes, except:
Simplifying the Ontario Computer Animation and Special Effects (OCASE)
Tax Credit
extending the temporary gas tax and fuel tax rate cuts - the rate of tax
on gas and fuel will remain at 9 cents per litre for an additional 6 months,
until December 31, 2024. This is a reduction from 14.7 cents per litre for
gas and 14.3 cents per litre for diesel fuel.
tax system review continues.
property assessment and taxation review is being undertaken with
consultations with stakeholders starting early spring. Property reassessment
continues to be deferred until the review is complete.
proposal to eliminate the wine basic tax on sales of Ontario wine and wine
coolers in on-site winery retail stores, effective April 1, 2024.
targeted review of taxes and fees on alcoholic beverages will be
conducted.
legislation will be introduced to require the provincial government to
hold an Ontario referendum before implementing a new provincial carbon
pricing program.
Non-Tax Measures:
increasing maximum Guaranteed Annual Income System (GAINS) program benefit
amounts, and adjusting to inflation annually.
eligibility for Ontario Electricity Support Program (OESP) will be
expanded beginning March 1, 2024.
tuition freeze for students in publicly assisted colleges and universities
extended for at least 3 more years.
There is a lot more to the budget besides the above. See the following on the
Ontario website:
new Ontario Made Manufacturing 10% Investment Tax Credit for CCPCs that
make qualifying investments and that have a permanent establishment in
Ontario
current gas tax and fuel tax cuts extended until December 31, 2023
legislation will be introduced to expand the Guaranteed Annual Income
System (GAINS) program starting in July 2024, to see about 100,000
additional seniors be eligible for the program
proposal to adjust the GAINS benefit annually so that it increases with
inflation
as proposed in the 2022 Ontario Economic Outlook and Fiscal Review,
extending the phase-out range for Ontario's small business corporate income
tax rate to between $10 million and $50 million of taxable capital employed
in Canada, mirroring the federal government change.
proposal to set a single 12% basic tax rate on wine and wine coolers sold
in off-site winery retail stores, including wine boutiques, coming into
effect on July 1, 2023. This would replace the four separate basic tax rates
that currently apply.
Requirement 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.
Brownfields 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.
On-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.
The Ontario March 2020 Economic and Fiscal Update was
released on March 25, 2020.
Employer Health Tax (EHT) - temporary increase
in exemption from $490,000 to $1 million for 2020.
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.
5 month interest and penalty-free period
for businesses to make payments for most provincially administered taxes.
Guaranteed Annual Income System (GAINS)
maximum payments doubled for 6 months beginning April 2020.
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
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%.
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).
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%.
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.