The McGuinty Government is proposing to boost tax relief for Ontario seniors to help with energy costs and property taxes.
By increasing the amount seniors can earn and still be eligible for the proposed Ontario Energy and Property Tax Credit, more Ontario seniors would benefit. Over 740,000 Ontario seniors would see an increase in tax relief.
Under the Ontario Energy and Property Tax Credit, Ontarians who own or rent a home could receive up to $900 in tax relief, with seniors able to claim up to $1,025 in tax relief.
This is the latest tax relief in the Open Ontario Plan. Income tax cuts that came into effect in January 2010 have lowered income taxes for 93 per cent of Ontario income tax payers. Those getting a tax cut will save an average of $200 per year.
Earlier this month, the government proposed the Children’s Activity Tax Credit to help families keep their kids active. And a new Northern Ontario Energy Credit will help eligible Northerners manage their energy costs.
- With this proposed enhancement, 50,000 more seniors would be eligible for the credit and another 690,000 seniors would receive a higher amount.
- Ontarians would be able to apply for the Ontario Energy and Property Tax Credit starting with their 2010 tax returns and, for 2010, would receive the tax credit after they file their tax returns.
- For subsequent years, the tax credit would be paid quarterly, like the new Ontario Sales Tax Credit.
Overall, the proposed Ontario Energy and Property Tax Credit would provide $525 million more than the property tax credit relief provided in 2009, for a total of about $1.3 billion annually to 2.8 million Ontarians.