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
Federal and Ontario
|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%|
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.
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