Income Tax Cut for 93% of Ontario Taxpayers

McGuinty Government’s Tax Changes To Create Jobs, Attract Investment

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.

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Ontarians paid highest property tax in 1998

Ontarians paid the highest property tax in the country in 1998 while the Atlantic provinces paid the lowest on average, according to the most recent figures available from Statistics Canada.

The 1999 survey released Wednesday was based on 1998 figures. It shows that annual property tax averaged $2,230 in Ontario and $2,030 in Quebec. By contrast, homeowners in Newfoundland and Labrador paid an average of $640.

Canadian homeowners paid 2.9 per cent of family income in property taxes in 1998, one-seventh of the 21.3 per cent they paid in income tax. Continue reading

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