Starting January 1, 2010, 93 per cent of Ontario’s income tax payers will get a permanent tax cut as part of a comprehensive tax plan that will help create 591,000 jobs and make the province more attractive for new business investment.
As of January 1, the province cut the first income bracket tax rate by one percentage point, from 6.05 per cent to 5.05 per cent. As a result, Ontario has the lowest tax rate of all provinces on the first income bracket. An additional 90,000 lower income Ontario taxpayers will no longer pay any provincial personal income tax.
The comprehensive package also includes $10.6 billion in direct payments and permanent tax relief, including the following:
- Starting in August, nearly 3 million low to middle-income Ontario families and individuals will receive a new, permanent Ontario Sales Tax Credit of up to $260 for each adult and child per year – one of the most generous in Canada.
- An additional $270 million in annual property tax relief, through enhancements to the Ontario Property Tax Credit, will benefit 2.3 million low to middle-income homeowners and tenants.
- Starting in June 2010, Sales Tax Transition Benefits will benefit 6.5 million Ontario families and individuals – totaling up to $1,000 for families (including single parents) and up to $300 for single people – in 2010 and 2011.
For more information on the government’s tax plan, visit: www.ontario.ca/taxchange.