Ontario residents get income tax break

News Release
Ont. Govt.

Starting January 1, 2010, 93 per cent of Ontario 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.
The province is cutting the first income bracket tax rate by one percentage point, from 6.05 per cent to 5.05 per cent. As a result, Ontario will have the lowest tax rate of all provinces on the first income bracket, and 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 - totalling up to $1,000 for families (including single parents) and up to $300 for single people - in 2010 and 2011.
“Our tax changes are about helping Ontario families by creating jobs and putting more money in their pockets through tax breaks and credits. Millions of Ontarians will benefit from our personal income tax cuts, but the greatest benefit to all Ontarians would be the additional jobs created as a result of our tax package," said John Wilkinson, Minister of Revenue.
In November 2009, economist and tax expert Jack Mintz estimated that these tax changes, together with other recent tax measures, will create 591,000 new jobs within ten years.
About 83 per cent of consumer expenditures will not see a new tax under the HST. In fact, the HST will result in the removal of $4.5 billion a year in hidden sales taxes when fully phased in. This means prices on some items will come down.
On July 1, 2010, federal and provincial sales taxes will be merged into the Harmonized Sales Tax (HST).
To find out more about Ontario’s tax plan
View the report: Ontario’s Bold Move to Create Jobs and Growth.