Ontario, Canada’s economic powerhouse, has its own set of tax rules alongside federal tax requirements. This FAQ dives deep into Ontario-specific tax questions to empower you during tax season
Ontario uses the same tax brackets as the federal government, right?
Not quite! Ontario has its own set of progressive tax brackets that apply on top of federal brackets. These determine your total provincial tax owing. You can find the latest Ontario tax brackets on the Canada Revenue Agency (CRA) website
Does Ontario offer any unique tax credits I should be aware of?
Absolutely! Ontario offers a variety of tax credits that can significantly reduce your tax burden. Here are a few noteworthy ones:
- Ontario Trillium Benefit: This refundable credit helps low- and middle-income individuals and families with the costs of energy and property taxes.
- Northern Ontario Energy Credit: This credit helps offset the higher energy costs faced by residents in Northern Ontario.
- Ontario Tuition and Textbook Credit: This credit helps students claim a portion of tuition fees and textbook purchases for post-secondary education.
I work remotely for a company outside Ontario. Do I still pay Ontario tax?
Yes. As an Ontario resident, you generally pay Ontario tax on all your income, regardless of where you earn it.
I recently moved to Ontario. When am I considered a resident for tax purposes?
For tax purposes, you’re considered an Ontario resident after staying 183 days (or more) in a calendar year
Can I claim travel expenses on my Ontario tax return?
In most cases, no. Ontario does not allow general travel expense deductions unless they’re specifically related to your employment and meet certain CRA criteria. However, there are exceptions for specific situations. Consulting a tax professional familiar with Ontario tax regulations is recommended for clarity
I’m starting a business in Ontario. Are there any tax benefits available?
Ontario offers various tax benefits for businesses. These include:
- Ontario Innovation Tax Credit: This credit encourages investment in research and development activities.
- Small Business Enterprise Deduction: This deduction allows eligible small businesses to deduct a portion of their business income from their provincial tax calculation.
