Ontario Is Planning To Cut Taxes For Anyone Who Makes Less Than $50K A Year

Premier Doug Ford is looking to cut down taxes for low-income Ontarians.

On Thursday, April 28, at around 4 p.m., finance minister Peter Bethlenfalvy will announce Ontario's budget for next year.

Government sources told the Toronto Star, Global News, CityNews Toronto, and CP24, that the budget — which will be introduced after this year's provincial elections in June — is looking to increase who can claim the Low-Income Individuals and Families tax credit from $38,500 to $50,000 so that anyone who makes less can qualify.

A senior government official shared with the Toronto Star that this would affect 700,000 more people, which means about 1.1 million people throughout the province will save about $300.

Emily Hogeveen, the director of media relations for Bethlenfalvy, confirmed to Narcity via email that this tax credit will be introduced in the budget later today.

As of now, per the Ontario government, those who are eligible to cash in on the Low-Income Workers Tax Credit — also known as the Low-income Individuals and Families (LIFT) Tax Credit — are Ontarian residents with a net income of under $38,500 or families with an adjusted net income under $68,500. Those who make minimum wage also qualify to apply for this tax credit.

Currently, the max credit eligible Ontarians can get back on their personal income taxes is $850 or just over 5% of their employment income, whichever of the two is lower.

Earlier this month, the Ford government announced it is also looking to bump up minimum wage rates from $15 to $15.50 per hour, which is set to happen to start on October 1, 2022 — shortly after Ontario's elections.