The world has changed. We've witnessed the biggest global economic downturn in 80 years. Many experts agree that a single, value-added sales tax like the HST is the most important thing we can do to strengthen Ontario's economy.
Together with our tax cuts, the HST will attract investment and jobs, and also help protect high quality public services that make Ontario a better place to live.
Cuts to Personal Income Tax
- 93% of Ontario taxpayers will get a personal income tax cut on January 1, 2010.
- All Ontario taxpayers will see a 16.5% cut in the tax rate on their first $37,106 of taxable income - that's the lowest rate of any province in Canada.
- Ontario families and individuals with up to $80,000 of income will get an average personal income tax cut of 10%.
Transition Payments
Replacing the PST will help eliminate the hidden sales tax that many products carry. Few people realize that the PST is charged on various businesses costs throughout the supply chain. This hidden tax is ultimately added into the cost the consumer pays at the cash register. However, there will be a transition period as businesses adjust prices to reflect their cost savings.
- Eligible families - including single parents and senior couples - with an annual income below $160,000 will receive three payments totalling $1,000.
- Eligible individuals with an annual income below $80,000 will receive three payments totalling $300.
These transition payments will be delivered to eligible Ontario tax filers aged 18 and over in June 2010, December 2010 and June 2011.
To qualify for the two payments scheduled in 2010, a 2009 tax return will have to be filed. A 2010 tax return will have to be filed to qualify for the June 2011 payment.
Low-income support
- Almost 3 million low-income Ontario families will receive a new, permanent sales tax credit of up to $260 for each adult and child per year - one of the most generous in Canada.
- 90,000 Ontario taxpayers with low incomes will pay no Ontario personal income tax thanks to changes included in the comprehensive tax package.
- A new Ontario Property Tax Credit will provide an additional $270 million in property tax relief every year to low- to middle- income Ontario homeowners and tenants.
Rebates and Exemptions and Lower Prices
Read more about how Ontario families will benefit from rebates and exemptions and lower prices.
