On April 11, 2019, the current Ontario Provincial Government presented its first budget “Protecting What Matters Most.”
The budget projects deficits of $11.7 billion for 2018-19 and $10.3 billion for 2019-20 with a modest surplus not until 2023-24.
Here are the highlights of the 2019 Ontario Budget:
There are no changes to corporate income tax rates which remain as follows:
Corporate Income Tax Rates
|
||
---|---|---|
Ontario | Combined Federal and Ontario |
|
General | 11.5% | 26.5% |
M&P: Manufacturing or Processing | 10% | 25% |
Canadian-controlled Private Corporations1 | 3.5% | 12.5% |
1On first $500,000 of active business income.
|
There are no changes to personal income tax rates which remain as follows:
2019 Top Marginal Personal Income Tax Rates
|
|
---|---|
Interest and regular income | 53.53% |
Capital gains | 26.76% |
Eligible dividends | 39.34% |
Non-eligible dividends | 47.40% |
The provincial government has introduced a refundable Ontario Childcare Access and Relief from Expenses (CARE) personal tax credit, available from the 2019 tax year for families with annual income of $150,000 or less.
The provincial government is proposing to eliminate the Estate Administration Tax on the first $50,000 of value of an estate. The Estate Administration Tax would continue to apply to the value of the estate exceeding $50,000 at the current rate. The tax would be calculated as:
The proposed calculation of Estate Administration Tax would apply if an estate certificate is requested on January 1, 2020, or later.
The entire budget is available on this link.
Our 2019 Best of Accounting Award was earned through a 3rd party independent survey of almost 400 of our clients. Our 82% NPS score indicates a world-class service rating!
REQUEST A CALL BACK