The Ontario government’s new Low-income Individuals and Families Tax (LIFT) credit is set to take effect on Tuesday.
According to the Progressive Conservative government, the LIFT credit will provide low-income and minimum-wage workers up to $850 and couples up to $1,700 in Ontario Personal Income Tax (PIT) relief.
With the LIFT credit, an individual working full-time, making minimum wage and earning nearly $30,000 would pay no Ontario PIT.
The tax credit would be gradually reduced for taxpayers with individual incomes greater than $30,000 and family incomes greater than $60,000, the government says.
WATCH: Ontario Finance Minister Vic Fedeli discusses Ontario’s tax credit plan for low-income workers
The provincial government says one in six Ontario taxpayers would receive the credit and would see about $450 in tax relief on average.
According to the 2018 Ontario Economic Outlook and fiscal review, people who are residents in Canada at the beginning of the year and residents in Ontario at the end of the year will be eligible for the LIFT credit.
According to the review, taxpayers who would not receive the tax relief include those who have:
Get breaking National news
- No Ontario PIT payable
- No employment income
- More than $38,500 in adjusted individual net income
- A higher-income partner such that their adjusted family net income is greater than $68,500
- Been in prison for more than six months during the year
According to the Ontario PCs’ economic outlook, the LIFT credit would reduce the province’s revenue by $125 million in 2018-19.
Comments