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On July 1, 2010 the 8% Provincial sales Tax will be replaced by a new Harmonized sales Tax which will combine it with the 5% Federal G.S.T.
Taxpayers will receive a one time Transitional Tax Benefit.
* Eligible families - including single parents and senior couples - with an annual income below $160,000 will receive three payments totaling $1,000.
* Eligible individuals with an annual income below $80,000 will receive three payments totaling $300.
These transition payments will be delivered to eligible Ontario tax filers aged 18 and over in June 2010, December 2010 and June 2011.
To qualify for the two payments scheduled in 2010, a 2009 tax return will have to be filed. A 2010 tax return will have to be filed to qualify for the June 2011 payment.
New Permanent Ontario Sales Tax Credit
* The new Ontario sales Tax credit will provide up to $260 a year for each adult and each child in eligible low-income families.
* The amount received will depend on the size of your family and your family income.
For 2010, the income level at which the credit will begin to be reduced is $20,000 for single people and $25,000 for couples and single parents. The credit will be reduced by 4% of your adjusted family net income over these income limits.
* The sales tax credit will be paid quarterly, starting August 2010.
The Ontario 2009 Budget replaces combined Sales and Property Tax Credit with two separate credits:
Ontario Sales Tax Credit:
* tax relief of up to $260 for each adult and child in low-and middle-income families
* reduced by 4% of adjusted family net income over $20,000 for single people, and over $25,000 for families
* refundable and paid quarterly, starting July 2010
Ontario Property Tax Credit
* based on occupancy cost - property tax paid, or 20% of rent paid
* credit of up to $250 for non-seniors or $625 for seniors, plus 10% of occupancy cost
* credit would not exceed occupancy cost, and would be subject to a maximum of $900 for non-seniors and $1,025 for seniors
* adjusted by 2% of adjusted family net income over $20,000 for single people and over $25,000 for families
* refundable, and claimed on the personal income tax return, beginning with the 2010 return.
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