Lower income Ontarians may be able to reduce or eliminate their Ontario income tax. How? By claiming the Ontario tax reduction on your annual income tax return.
Can I claim the Ontario tax reduction?
The answer is yes if you:
- were an Ontario resident on December 31 of the tax year
- filed an income tax return
- are subject to Ontario income tax.
You can also claim a reduction for:
- your dependent children age 18 years or under for whom you received the federal Child Tax Benefit
- disabled or infirm dependants of any age
- a child who died during the tax year for whom you received the federal Child Tax Benefit.
Tip: If you claim a person as a dependent for federal income tax purposes, they also qualify for the Ontario tax reduction.
How much tax can I save?
The amount of your Ontario tax reduction depends on:
- the number of dependents in your family
- their ages
- other deductions or credits you may be able to claim.
How to apply
- Complete the ON428 Ontario Tax form included with your federal income tax return.
- Send the form with your completed tax return to the Canada Revenue Agency. You do not need to include documents to support your claim for the Ontario Tax Reduction.