Understanding Ontario Tax Benefits: A Guide for Individuals in 2024

As an Ontario resident, you may be eligible for several tax benefits designed to reduce your overall tax burden. This guide provides an overview of key tax credits and benefits available at both the federal and provincial levels for the 2024 tax year.

Important Considerations

• Eligibility: Specific eligibility requirements vary across different benefits. Factors like income level, family status, disability, or age often come into play. 
• Federal vs. Provincial: It’s important to distinguish between benefits offered by the federal government and those specific to Ontario.

Key Federal Tax Credits and Benefits

• Basic Personal Amount (BPA): All individuals are entitled to this non-refundable credit, reducing your taxable income.
• Canada Pension Plan (CPP) Contributions and Employment Insurance (EI) Premiums: Contributions made throughout the year are deductible.
• Canada Caregiver Credit: Offers financial support to individuals caring for dependents with specific needs.
• Disability Tax Credit: Available for those with severe and prolonged impairments (approval from a medical practitioner is required).
• Medical Expense Tax Credit: Eligible medical expenses (exceeding a percentage of income) can be claimed.
• Tuition, Education, and Textbook Amounts: These credits help offset post-secondary education costs.
• GST/HST Credit: Provides quarterly payments to low- and modest-income individuals to help offset these taxes.
• Canada Child Benefit (CCB): A tax-free monthly payment designed to support families with children under 18.
• Canada Worker’s Benefit (CWB): A refundable tax credit supporting low-income workers and families.

Key Ontario Tax Credits and Benefits

• Ontario Trillium Benefit (OTB): Combines the Ontario Energy and Property Tax Credit, the Ontario Sales Tax Credit, and the Northern Ontario Energy Credit into a single monthly payment.
• Ontario Seniors’ Homeowners’ Property Tax Grant (OSHPTG): Provides property tax relief to senior homeowners.
• Ontario Focused Flow-Through Share Credit: A tax credit for those who invest in specific Ontario companies.
• Ontario Childcare Access and Relief from Expenses (CARE) Tax Credit: This refundable tax credit assists low- and moderate-income families with childcare expenses.

Noteworthy Changes for 2024

• First Home Savings Account (FHSA): This new savings tool helps eligible individuals save for their first home, with contributions being tax-deductible and qualifying withdrawals being tax-free.
• Multigenerational Home Renovation Tax Credit (MHRTC): This refundable credit supports renovations to create a secondary residence for an eligible family member (such as a senior parent or an adult with a disability).