Starting New Years day, 93 per cent of Ontario income taxpayers getting a permanent tax cut.It’s part of a comprehensive tax plan that will help create 591,000 jobs, cut personal income taxes and make our province more attractive for new business investment.
As of January 1, the McGuinty government is cutting the first income bracket tax rate by one percentage point, from 6.05 per cent to 5.05 per cent. As a result, Ontario will have the lowest tax rate of all provinces on the first income bracket. An additional 90,000 lower income Ontario taxpayers will no longer pay any provincial personal income tax.
Ontario’s comprehensive package includes $10.6 billion in direct payments and permanent tax relief for the people of Ontario. It also includes a new, permanent Ontario Sales Tax Credit, an enhanced Ontario Property Tax Credit, cuts to corporate income tax rates and merging two sales taxes into a single harmonized sales tax to strengthen our economy.
“Starting January 1st, 93 per cent of Ontario tax payers are getting an income tax cut. That means less provincial tax will be taken off your first paycheque of the year, and every paycheque after that,” said Dr. Helena Jaczek, MPP for Oak Ridges-Markham. “Millions of Ontarians will benefit, but the greatest benefit is, it’s part of a package experts say will create investment and jobs when our province needs it most.”
To find out more about Ontario’s comprehensive tax change package, visit www.ontario.ca/taxchange.