There are a few Ontario tax credits that you could be eligible to claim when filing your return this year.
You could save money or even get money back from the government!
Ontario offers refundable and non-refundable tax credits that are claimable on tax returns.
A non-refundable credit reduces the amount of income tax you could have to pay after filing, but a refundable credit can get you money back if it's more than your tax owing.
So, here are some Ontario tax credits you should know about when filing your 2025 taxes in Canada this year.
Ontario tax reduction
Ontario tax reduction is a non-refundable tax credit that lowers or eliminates the income tax you may pay.
The amount of your reduction depends on:
- where you lived at the beginning and end of the tax year
- how many dependants you have
- your marital status
- your payable income tax
You need to file your income tax and benefit return with Canada Revenue Agency and complete Form ON428 to claim this credit.
Low-income workers tax credit
The low-income workers tax credit is a non-refundable tax credit for people with low incomes, including those who make minimum wage.
You can qualify for this tax credit if you:
- are a Canadian resident in any province or territory 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 individual adjusted net income for the year below $50,000
- have an adjusted family net income for the year below $82,500
- didn't spend more than six months in prison during the year
The maximum credit you can receive is $875 or 5.05% of your employment income, whichever is lower.
You can claim it on your income tax and benefit return, and it's labelled 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 that helps families with eligible medical expenses related to fertility treatment and surrogacy.
It's available for expenses paid on or after January 1, 2025.
You can get back 25% of eligible expenses, and you can claim a maximum of $20,000 in eligible expenses per year.
The maximum credit amount is $5,000 each year.
To qualify for this tax credit, you must have expenses relating to fertility treatment and preservation or to surrogacy in Canada that qualify for the Ontario medical expense tax credit.
Any eligible expenses claimed for the Ontario fertility treatment tax credit must also be claimed for the Ontario medical expense tax credit on your tax return for the same tax year.
You can find out how much of the amount that you claimed for the Ontario medical expense tax credit was for eligible fertility treatment and surrogacy expenses at field 58689 of Form ON428.
Then you have to enter the total amount of these eligible expenses in field 61268 of Form ON479.
On line 1 of Form ON479, enter 25% of the total eligible expenses in field 61268 or $5,000, whichever is less.
Political contribution tax credit
The political contribution tax credit is a non-refundable tax credit for individuals who have made financial contributions to the provincial political process.
To get the credit, you need to:
- be an Ontario resident on December 31 of the tax year
- have made a contribution during that year to a candidate in an Ontario provincial election, or to a registered Ontario political party, registered constituency association or registered leadership contestant
It doesn't apply to municipal or federal elections.
The amount of credit depends on how much you give, and the maximum credit amount is $1,698.08.
You claim it on your income tax and benefit return by calculating your credit using the chart in worksheet ON479 and then completing form ON479.
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.
Families can receive up to:
- $6,000 per child under the age of seven
- $3,750 per child between the ages of seven and 16
- $8,250 per child with a severe disability
The Ontario child care tax credit is calculated as a percentage of your child care expense deduction. The child care expense deduction provides provincial and federal income tax relief for eligible child care expenses.
To claim this tax credit, you have to file your tax return and submit a completed Schedule ON479-A, 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.
It's available to eligible persons who donate agricultural products to eligible community food programs in Ontario.
This credit is available in addition to the federal charitable donation tax credit and is worth 25% of the fair market value of the agricultural products donated.
You can claim the credit by filing a completed Form ON428, Ontario Tax, with your personal income tax and benefit return, which is also known as a T1 return.
Ontario dividend tax credit
The Ontario dividend tax credit offers a reduced tax rate on dividend income from investments in a Canadian corporation.
You can claim the credit on your income tax and benefit return by calculating your credit on line 61520 of 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 tax credit to help low- to moderate-income seniors with eligible medical expenses, including expenses that support aging at home.
You're eligible to claim the credit if you:
- turned 70 years of age or older in the year, or have a spouse or common‐law partner who turned 70 years of age or older in the year
- are residents in Ontario at the end of the tax year
This tax credit provides up to 25% of claimable medical expenses up to $6,000, and the maximum credit is $1,500.
That amount is reduced by 5% of family net income over $35,000 and fully phased out by $65,000.
To claim the credit, you need to calculate the amount of your claimable medical expenses by completing the following lines on your tax return:
- lines 33099 through 33200 on your federal Income Tax and Benefit Return (also called form T1)
- lines 58689 through 58769 on the Ontario Tax portion of your return (also called Form ON428)
Then, you have to complete lines 4 to 14 on the Ontario Credits portion of your return (also called Form ON479) to claim the Ontario seniors care at home tax credit.
Ontario seniors' public transit tax credit
The Ontario seniors' public transit tax credit is a refundable tax credit to help seniors with public transit costs.
To qualify for this credit, you must:
- be 65 years old or older on the last day of the previous tax year
- live in Ontario by the end of the tax year
You can claim fares you pay on eligible public transit services in Ontario, including transit services offered by Metrolinx.
Also, you can claim expenses for specialized public transit services designed to transport people with disabilities.
With this tax credit, you can claim up to $3,000 in eligible public transit expenses and receive up to $450 each year.
You can submit a claim for the Ontario seniors' public transit tax credit when you file your personal income tax and benefit return.
The provincial government said to save your receipts and proof of payment to claim your eligible public transit expenses.
READ NEXT: 13 Canadian tax credits you could claim when filing your return this year
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9 Ontario tax credits that could save you money or get you a refund when filing your return
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