Ontario’s Government for the People is proposing one of the most generous Ontario tax cuts for low-income workers in a generation — the Low-income Individuals and Families Tax (LIFT) Credit.
The LIFT Credit would, if passed, benefit 1.1 million people across the province. It would provide low-income and minimum wage workers up to $850 in Ontario Personal Income Tax relief and couples up to $1,700.
With this tax relief, a single person who works full time at minimum wage (earning nearly $30,000) would pay no Ontario Personal Income Tax. Tax relief would be gradually reduced for taxpayers with individual incomes greater than $30,000, and family incomes greater than $60,000.
One in six Ontario taxpayers would get the LIFT Credit and, on average, would receive about $450 in tax relief. The tax credit would be effective January 1, 2019.
Ontario’s Government for the People is committed to helping taxpayers keep more of their hard-earned money. Every single dollar of this credit is targeted to low-income workers.
Chart Descriptions
Tax Relief for LIFT Credit Recipients
This chart provides three examples of the amount of Ontario Personal Income Tax (PIT), excluding the Ontario Health Premium, payable before and after the Low-income Individuals and Families Tax (LIFT) Credit.
Leftmost section: Jane is a single person with no dependants and $29,200 of employment income, only. In 2019, without the LIFT Credit, Jane would have paid about $850 in Ontario PIT. The LIFT Credit, however, would reduce the amount of Ontario PIT payable by $850 to zero.
The middle section: David is a single senior who has both employment and non-employment income. David earns employment income of $15,500, and receives $5,500 as a Canada Pension Plan benefit and $7,000 in Old Age Security payments, resulting in a total income of $28,000. In 2019, without the LIFT Credit, David would have paid about $605 in Ontario PIT. The LIFT Credit, however, would reduce the amount of Ontario PIT payable by $605 to zero.
Rightmost section: Jenny and George are a two-earner couple with one child aged 13 (for whom child care expenses are not incurred). In 2019, Jenny has employment income of $29,000 and non-employment income of $3,500, while George has $29,500 in employment income only. In 2019, without the LIFT Credit, the family would have paid $1,510 in Ontario PIT in total. The LIFT Credit, however, would reduce the family’s Ontario PIT payable by $1,250, reducing their combined Ontario PIT to $260.