2019 Ontario Budget

The 2019 Ontario Budget was released on April 11, 2019. The following are a few of the tax highlights that could be relevant to you:

Ontario Childcare Access and Relief from Expenses (CARE) tax credit

This credit will be based on a taxpayer’s family income and eligible childcare expenses.

Family incomeRate calculation
Up to $20,00075%
$20,000 to $40,00075% minus 2 percentage points for each $2,500 (or part thereof) above $20,000
$40,000 to $60,00059% minus 2 percentage points for each $5,000 (or part thereof) above $40,000
$60,000 to $150,00051% minus 2 percentage points for each $3,600 (or part thereof) above $60,000
> $150,0000%

A family that qualifies for the full 75 per cent credit could receive up to $6,000 per child under seven years old and $3,750 per child between seven and 16 years old. The amount goes up to $8,250 for a child with “severe disabilities,” according to the government.

Low-Income Individuals and Families Tax (LIFT) Credit

Effective January 1, 2019, low-income Ontario taxpayers with employment income will be eligible for this non-refundable tax credit. This credit will effectively reduce your Ontario taxes on employment income up to $38,550 and eliminate Ontario taxes altogether on employment income up to $29,200. The maximum savings from this is $850. The Ontario Health Premium would still be payable.

Estate Administration Tax

The budget proposes to eliminate the Estate Administration Tax on the first $50,000 of the value of all taxable estates, effective for estate certificates requested after December 31, 2019. Estates will save up to $250. The budget also proposes to extend the deadline to file the Estate Administration Information return to 180 days (from 90) after the estate certificate is issued effective January 1, 2020.

Ontario Job Creation Investment Incentive

This incentive parallels the federal measures and provides an increased first year CCA deduction on eligible depreciable property acquired after November 20, 2018.