Archive for category: Ontario Only

2025 Ontario Budget

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Ontario Budget 2025

Ontario’s 2025 Budget focuses on holding tax rates steady while introducing targeted cost-of-living relief, business supports, and retirement security measures. Recognizing the economic strain caused by ongoing U.S. tariffs on key Ontario industries, the government is also providing billions in business relief, tax deferrals, and community support to help protect jobs and local economies.

For Families

The budget brings some meaningful relief for families facing rising everyday expenses. While personal tax rates remain unchanged, a new tax credit has been introduced to support those growing their families.

What’s Changing for Families:

  • No change to personal tax rates.

In addition to tax stability, the government is offering relief on everyday expenses to help ease the cost of living. This includes a $200 one-time payment provided earlier this year to assist with rising household costs. Public transit riders can take advantage of the One Fare program, which could save frequent users up to $1,600 per year by eliminating extra charges when transferring between transit systems.

For families planning to grow, the new Ontario Fertility Treatment Tax Credit offers financial support by covering 25% of eligible fertility expenses, up to $5,000 per year, even if no taxes are owed.

Expanded Access to Services:

  • $2.1 billion investment to connect all Ontarians with a family doctor or care team

  • $56 billion for hospital expansions, adding 3,000 new beds

  • $30 billion for new schools and childcare spaces, including 20,500 new STEM education seats

For Business Owners

While tax rates for businesses remain unchanged, the budget introduces expanded supports to help businesses manage cash flow and invest in growth.

Business Tax Highlights:

  • No change to corporate tax rates:

Key Supports for Businesses:

  • Tax deferral on select Ontario taxes until October 1, 2025, offering up to $9 billion in liquidity for 80,000 businesses

  • Enhanced Manufacturing Investment Tax Credit: Increased to 15% on up to $20 million annually in qualifying investments until 2030

  • $4 billion in Workplace Safety and Insurance Board rebates and $150 million in ongoing premium savings

  • $5 billion Protecting Ontario Account for businesses impacted by tariffs

  • $50 million Ontario Together Trade Fund to help businesses retool and diversify markets

  • $500 million Critical Minerals Processing Fund to boost Ontario’s mining and battery supply chain

Workforce and Infrastructure Investments:

  • $1 billion for job training and workforce programs

  • $750 million for expanding STEM education

  • $2.3 billion over 4 years for municipal housing infrastructure to support community and economic growth

For Retirees

Retirees will see stability in tax rates and small, meaningful cost-of-living supports. There are no new taxes on retirement income, RRIF withdrawals, or investment earnings, providing financial consistency for those in retirement.

Tax Stability for Retirees:

  • No change to taxes on pensions, RRIF withdrawals, or investment income:

Everyday Savings for Seniors:

  • Permanent 9-cent-per-litre gas tax cut

  • Alcohol tax reductions starting August 1, 2025, lowering prices on wine, beer, and ready-to-drink beverages

Health and Housing Supports for Seniors:

  • $56 billion for hospital expansions, adding 3,000 new beds

  • $6.4 billion since 2019 for 58,000 long-term care beds by 2028

  • Up to 35% property tax reduction on affordable rental housing starting in 2026

In Summary

Ontario’s 2025 Budget provides small but meaningful supports across the board. Families benefit from cost-of-living rebates, transportation savings, and improved healthcare and education. Business owners gain liquidity relief, investment incentives, and programs to help diversify and grow. Retirees enjoy tax stability, lower daily costs, and expanded healthcare and housing options.

Ready to take action?

If you’d like to discuss how these changes could impact your financial, business, or retirement plans, we encourage you to reach out. Book a consultation today to ensure you’re making the most of the opportunities available.

Sources:

Government of Ontario. “Building a Better Ontario: 2025 Ontario Budget.” https://budget.ontario.ca/2025/pdf/2025-ontario-budget-en.pdf.

KPMG Canada. “Highlights of the 2025 Ontario Budget.” https://assets.kpmg.com/content/dam/kpmg/ca/pdf/tnf/2025/05/ca-highlights-of-the-2025-ontario-budget.pdf .

Canada Revenue Agency. Canadian Income Tax Rates for Individuals – Current and Previous Years. Government of Canada, https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html 

Canada Revenue Agency. “Corporation Tax Rates.” Government of Canada, https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-tax-rates.html.

Ontario’s 2024 Budget Highlights

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On March 26, 2024, the Ontario Minister of Finance announced the province’s 2024 budget. This article highlights the most important things you need to know about this budget, broken into 2 sections:

  • Personal Tax Changes

  • Business Tax Changes


Personal tax changes

There are no changes to the province’s personal tax rates in Budget 2024. 

As a result, Ontario’s personal income tax rate remains as follows: 

Gasoline tax and fuel tax

The Ontario government has chosen to extend the reduced tax rates on gasoline and fuel. This means that the tax you pay when you buy gas or fuel will remain at nine cents per litre until December 31, 2024, instead of ending on June 30, 2024.


Alcohol taxation and fees

The budget reveals that the government plans to review the taxes and fees on beer, wine, and alcoholic beverages.


Property assessment and taxation review

The budget says that Ontario will keep postponing property reassessments while it looks at how property assessments and taxes work. Ontario also plans to talk to different groups about property assessments starting in the early spring.


Housing supply and affordability

The budget says Ontario wants to make it easier for certain cities to:

  • Bring in a Vacant Home Tax

  • Give lower property taxes on new apartment buildings with many units for rent.


Technical amendments

The budget mentions that Ontario might suggest some small changes, like fixing how small estates are handled in the Estate Administration Tax Act of 1998 and adjusting how loans are dealt with during the day in Ontario.


Carbon tax referendum

The budget states that the provincial government plans to introduce a law that would ask the public to vote in a referendum before starting any new provincial carbon pricing program.


Tax system review

The budget states that the government is still looking at how taxes work in the province, which they started doing in the 2023 Ontario budget. 


Business tax changes

There are no changes to the province’s corporate tax rates in Budget 2024. 

As a result, Ontario’s Corporate income tax rate remains as follows:

1 On first $500,000 of active business income.

Ontario computer animation and special effects tax credit

The budget is making changes to who can get the Ontario Computer Animation and Special Effects (OCASE) Tax Credit. Now, for each movie or TV show, a company must spend at least $25,000 on Ontario workers’ wages, with certain timing rules. Also, instructional videos, music videos, and gaming videos won’t count for the credit anymore.

These updated eligibility criteria replace the previous requirement for an eligible film or television production to also be certified for either the Ontario Film and Television Tax Credit or the Ontario Production Services Tax Credit.

The changes start for productions that begin computer animation or special effects work on or after March 26, 2024. 

We can help!

Wondering how this year’s budget will impact your finances or your business? We can help – give us a call today!  

Source: https://budget.ontario.ca/2024/index.html

Ontario 2023 Budget Highlights

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Ontario 2023 Budget Highlights

On March 23, 2023, Ontario’s Minister of Finance delivered the province’s 2023 budget. Here are some of the highlights.

No Changes To Corporate or Personal Tax Rates

Budget 2023 did not change Ontario’s corporate or personal tax rates.

Corporate Tax Credits

Budget 2023 introduces a 10% refundable Manufacturing Investment Tax Credit for Canadian-controlled private corporations (CCPCs). This tax credit applies to qualifying capital investments related to manufacturing or processing, with the goal of helping Ontario manufacturers lower their costs and become more competitive.

The budget confirms extending eligibility for Ontario’s film and television tax credits to productions distributed exclusively online.

Budget 2023 also confirms that the province will align with the federal government’s increase in the upper limit for the small-business deduction phase-out range from $15 million to $50 million. This change will take effect for taxation years beginning on or after April 7, 2022.

Consequently, the small-business deduction will only be reduced to zero once a Canadian-controlled private corporation (CCPC) and its affiliated companies have a combined taxable capital of $50 million or more.

Indirect Tax Changes

As of July 1, 2023, a single 12% tax will be applied to wine and wine coolers sold in off‐site winery retail stores. This includes wine boutiques. This tax will replace the four separate tax rates currently applied and is expected to result in an overall tax reduction of about $4 million per year.

Increasing Healthcare Options

Budget 2023 commits $200 million to help the healthcare workforce grow, including training more nurses and helping foreign-trained nurses and doctors attain accreditation in Ontario. In addition, $569 million will be spent to expand home care options.

To help address backlogs, an additional $72 million has been committed to providing OHIP-covered surgeries at community surgical and diagnostic centres.

Over three years, $425 million has been committed to mental health services.

Supporting Communities

The Guaranteed Annual Income System, designed to assist low-income seniors, is set to expand. With an increase in the private income threshold, approximately 100,000 more seniors will be eligible to benefit from the program starting July 2024. The Ontario 2023 budget includes plans to adjust the benefit annually to keep pace with inflation.

Budget 2023 contains $22 billion to build more schools and childcare spaces.

Supporting The Economy And Infrastructure

Ontario is investing an additional $3 million this year to help junior mining companies finance mineral exploration and development.

Budget 2023 commits $224 million to build and upgrade training centres in Ontario and $75 million to the Skills Development Fund over the next three years. The Skills Development Fund aims to help employers address challenges related to hiring, training or retaining workers.

Budget 2023 also includes funding to help ensure Ontario has the infrastructure it needs:

  • $27.9 billion will be spent to support highway expansion and rehabilitation project planning and construction.

  • Over the next ten years, $70.5 billion will be spent on transit, strongly emphasizing supporting GO transit and expanding the Toronto subway system.

We can help!

Wondering how the budget will impact you? Reach out to us – we’re here to answer any questions!