Personal Income Tax
Ontario Tax is the provincial portion of your income taxes. It is calculated separately from your federal income tax, and is based on which tax bracket your income is in. Ontario tax also includes the Ontario Health Premium.
For people living in Ontario, two Ontario forms are of interest as part of your federal income tax return:
Ontario Tax Credits
You can reduce the amount of Ontario tax you pay by using tax credits when you file your income tax return. Ontario Tax Credits provide tax relief for people with low to moderate incomes.
There are two types of credits: non-refundable credits and refundable credits.
Non-refundable credits
Ontario has its own non-refundable tax credits similar to federal non-refundable tax credits, although the amounts may differ. For example – adoption tax credit, disability tax credit, and caregiver tax credit. The rules for claiming these credits are the same as the rules for the federal tax credits. You claim the non-refundable credits on your ON 428 Ontario Tax form.
Refundable credits
These credits give you a refund, even if you do not owe any Ontario tax. Refundable tax credits include property and sales tax credits, political contribution tax credit, and a few others. You claim these refundable tax credits on your ON 479 Ontario Credits form.
Eligibility
To be eligible to claim Ontario Tax Credits you must:
- be an Ontario resident
- have lived in Ontario on December 31
- file a federal income tax return for that year.
If you have a spouse or common-law partner, there are special conditions which apply to each Ontario Tax Credit.
For details about the Ontario tax credits, see the Ontario Tax Credits System Information Bulletin.
