8 Ontario Tax Credits That Can Save You Money & Get You A Refund On Your Tax Return This Year
A few Ontario tax credits could save you money and even get you a tax refund from the government this year!
These credits offer help for low-income workers, parents with young children, seniors who own their homes, and more.
Not only can you claim federal tax credits when you file a return this year but you can also claim non-refundable and refundable provincial tax credits in Ontario.
Non-refundable credits can reduce your amount of provincial tax payable and refundable credits can get you a refund if the total is more than the taxes you have to pay.
So, here are a few Ontario tax credits that you might be able to claim when filing your 2023 taxes this year.
Low-Income Workers Tax Credit
The Low-Income Workers Tax Credit — also known as Low-Income Individuals and Families Tax Credit — is a non-refundable tax credit that you can use to reduce or eliminate your Ontario personal income tax.
You can qualify for this credit if you meet all of the following conditions:
- you must be a Canadian resident in any province or territory at the start of the tax year
- you must be an Ontario resident by the end of the tax year
- you must have employment income
- you must owe Ontario personal income tax
- your individual adjusted net income for the year must be below $50,000
- your adjusted family net income for the year must be below $82,500
- you must not have spent more than six months in prison during the year
The maximum credit you can receive is $875 or 5.05% of your employment income, whichever amount is lower.
You can claim this credit when you file your tax return. You'll see it as the Low-Income Individuals and Families Tax Credit.
Political contribution tax credit
The political contribution tax credit helps individuals who have made financial contributions to provincial politics.
To get the credit, you need to:
- be an Ontario resident on December 31 of the tax year
- have made a contribution during that year to a candidate in an Ontario provincial election or to a registered Ontario political party, registered constituency association or registered leadership contestant
You can't claim this credit if you made contributions to municipal or federal elections.
The amount of the credit depends on how much you give and the maximum credit is $1,552.
You claim the credit on your 2023 Income Tax and Benefit Return.
If you file electronically, you need to keep all your receipts and documents for six years, the provincial government noted.
Ontario Child Care Tax Credit
The Ontario Child Care Tax Credit — also known as Ontario Childcare Access and Relief from Expenses Tax Credit — gives money to families for the cost of child care.
Eligible families can claim up to 75% of their eligible childcare expenses, including services provided by childcare centres, homes and camps.
You could receive up to:
- $6,000 per child under the age of seven
- $3,750 per child between 7 and 16 years old
- $8,250 per child with a severe disability
You can claim this tax credit when you file your personal income tax return this year.
Community food program donation tax credit for farmers
If you donate agricultural products to eligible community food programs in Ontario, you could be able to claim the non-refundable community food program donation tax credit.
This credit is worth 25% of the fair market value of the agricultural products donated.
You can be eligible for this credit if you're:
- an individual (or their spouse or common-law partner) who carries on the business of farming in Ontario and resides in Ontario on December 31 of the tax year
- a corporation that carries on the business of farming in Ontario
An agricultural product includes meat or meat by-products, eggs or dairy products, fish, fruits, vegetables, grains, herbs, honey, maple syrup, nuts, and more.
You can claim the credit by filing a completed Form ON428 with your personal income tax and benefit return.
Ontario Seniors' Public Transit Tax Credit
The Ontario Seniors' Public Transit Tax Credit is a refundable tax credit offered by the province to help seniors with public transit costs.
To qualify for the credit when you file your 2023 Income Tax and Benefit Return, you must be:
- 65 years or older on December 31, 2021
- a resident of Ontario on December 31, 2022
You can claim up to $3,000 in eligible public transit expenses and receive up to $450 each year.
These expenses can be claimed when you file your income tax return for 2023.
Ontario Tax Reduction
The Ontario Tax Reduction is a personal income tax credit that can reduce or eliminate your Ontario income tax.
The amount of your reduction depends on:
- where you lived at the beginning and end of the tax year
- how many dependants you have
- your marital status
- your payable income tax
You need to file your personal income tax and benefit return with the Canada Revenue Agency (CRA) and complete Form ON428 to be considered for this tax credit.
Ontario caregiver amount
You could be able to claim the non-refundable Ontario caregiver amount for an eligible relative who was dependent on you because of a mental or physical impairment.
An eligible relative is a dependant 18 years or older before the end of the year who is your or your spouse's or common-law partner's:
- child or grandchild
- parent, grandparent, brother, sister, aunt, uncle, niece or nephew who was resident in Canada
Senior Homeowners' Property Tax Grant
The Senior Homeowners' Property Tax Grant helps low-to-moderate-income seniors with the cost of their property taxes.
You qualify for this grant if you or your spouse/common-law partner meet these conditions as of December 31 of the previous year:
- paid Ontario property tax for the year
- were single, divorced or widowed and earned less than $50,000 or were married or living common-law and earned a combined income of less than $60,000
- owned and occupied your principal residence
- were 64 years of age or older
- were a resident of Ontario
You could get up to $500 every year depending on your adjusted family net income.
You need to file your tax return, even if you don't have income to report, to apply for this grant. If you don't owe income tax you could still qualify to get money.
Changes have been made that will affect your income tax return filing this year, according to the CRA.
The Ontario Staycation Tax Credit is not available anymore which means you can't claim it on your 2023 tax return.
Also, the Ontario Seniors' Home Safety Tax Credit and Ontario Jobs Training Tax Credit aren't available for the 2023 tax year.
