Ontario offers several tax credits that you may be eligible to claim when filing your tax return for 2025. These credits can help you save money or even receive a refund from the government, easing your financial burden. Ontario provides both refundable and non-refundable tax credits, each offering different benefits depending on your situation.
A non-refundable credit reduces the amount of income tax you owe after filing, while a refundable credit can give you money back if the credit exceeds the tax you owe. Here’s an overview of the most notable Ontario tax credits to be aware of when filing your taxes this year.
Ontario Tax Reduction
The Ontario tax reduction is a non-refundable credit designed to reduce or eliminate the income tax you owe. The amount of reduction depends on several factors:
- Where you lived at the beginning and end of the tax year
- The number of dependents you have
- Your marital status
- The income tax you owe
To claim this credit, you must file your income tax and benefit return with Canada Revenue Agency (CRA) and complete Form ON428.
Low-Income Workers Tax Credit
The low-income workers tax credit is a non-refundable credit aimed at people with low incomes, including those earning minimum wage. You qualify for this credit if you:
- Are a Canadian resident at the start of the tax year
- Are an Ontario resident by the end of the tax year
- Have employment income
- Owe Ontario personal income tax
- Have an adjusted net income for the year below $50,000 (individual) or $82,500 (family)
- Did not spend more than six months in prison during the year
The maximum credit available is $875, or 5.05% of your employment income, whichever is lower. You can claim this credit on your tax return as the Low-Income Individuals and Families Tax Credit.
Ontario Fertility Treatment Tax Credit
The Ontario fertility treatment tax credit is a refundable tax credit designed to assist families with medical expenses related to fertility treatment and surrogacy. Available for expenses incurred on or after January 1, 2025, this credit provides:
- 25% of eligible expenses related to fertility treatment and surrogacy, up to a maximum of $20,000 in expenses per year.
- The maximum credit amount is $5,000 per year.
To claim this credit, you must first claim the eligible expenses for the Ontario medical expense tax credit on your return for the same year. You can find the relevant field for claiming this in Form ON479.
Political Contribution Tax Credit
The political contribution tax credit is a non-refundable credit for individuals who make financial contributions to Ontario’s provincial political process. To qualify:
- You must be an Ontario resident on December 31 of the tax year.
- You must have contributed to a candidate, political party, registered constituency association, or registered leadership contestant in an Ontario provincial election.
This credit can be claimed using Form ON479 and offers a maximum credit amount of $1,698.08.
Ontario Child Care Tax Credit
The Ontario child care tax credit is a refundable tax credit that allows eligible families to claim up to 75% of their eligible child care expenses. The credit provides up to:
- $6,000 per child under the age of seven
- $3,750 per child between seven and 16
- $8,250 per child with a severe disability
To claim this credit, you must file your tax return and submit Schedule ON479-A, the Ontario Childcare Access and Relief from Expenses (CARE) Tax Credit form.
Community Food Program Donation Tax Credit
The community food program donation tax credit is a non-refundable tax credit available to those who donate agricultural products to eligible community food programs in Ontario.
The credit is 25% of the fair market value of the donated agricultural products and is in addition to the federal charitable donation tax credit. To claim this, you must file Form ON428 with your personal tax return.
Ontario Dividend Tax Credit
The Ontario dividend tax credit offers a reduced tax rate on dividend income from investments in Canadian corporations. You can claim this credit by calculating it on the provincial worksheet and entering the amount on Form ON428.
Ontario Seniors Care at Home Tax Credit
The Ontario seniors care at home tax credit is a refundable credit to assist low- to moderate-income seniors with eligible medical expenses, including those related to aging at home. To qualify:
- You or your spouse/common-law partner must be 70 years or older during the tax year.
- You must be an Ontario resident at the end of the tax year.
This credit offers up to 25% of claimable medical expenses, with a maximum of $1,500. The amount reduces by 5% of family net income over $35,000 and is phased out completely at $65,000.
To claim this credit, complete the necessary lines in both the federal and Ontario tax returns.
Ontario Seniors’ Public Transit Tax Credit
The Ontario seniors’ public transit tax credit is a refundable credit to help seniors with their public transit costs. You qualify if you:
- Are 65 years or older on the last day of the previous tax year
- Are a resident of Ontario at the end of the tax year
This credit allows you to claim up to $3,000 in eligible public transit expenses and receive up to $450 annually. Eligible expenses must be submitted when you file your personal income tax return.
Ontario offers a variety of tax credits that can provide significant financial relief to eligible individuals and families. Whether you’re a senior, a low-income worker, a parent, or a political contributor, these credits can help reduce your tax burden or offer a refund. Be sure to review the criteria for each credit and file your taxes accurately to maximize your benefits.
By understanding these key tax credits, you can ensure you receive the financial support you deserve and ease the impact of tax season.
FAQs
How can I qualify for the Ontario tax reduction?
To qualify for the Ontario tax reduction, your eligibility is based on factors such as income, dependents, and marital status.
What is the Ontario child care tax credit, and how much can I claim?
The Ontario child care tax credit allows families to claim up to 75% of eligible child care expenses, with varying amounts depending on the child’s age.
Can I claim the Ontario seniors’ public transit tax credit every year?
Yes, you can claim the Ontario seniors’ public transit tax credit annually, with a maximum of $450 per year for eligible transit expenses.