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2019 Ontario Budget Highlights

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:

Corporate Income Tax

There are no changes to corporate income tax rates which remain as follows:

Corporate Income Tax Rates
As of January 1, 2019

 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.

Personal Income Tax

There are no changes to personal income tax rates which remain as follows:

2019 Top Marginal Personal Income Tax Rates
Combined Federal / Provincial

 Interest and regular income 53.53%
 Capital gains 26.76%
 Eligible dividends 39.34%
 Non-eligible dividends 47.40%

 

Ontario Childcare Access and Relief from Expenses Personal Tax Credit

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.

Changes to Estate Administration Tax

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:

  • $15 for every $1,000, or part thereof, of the value of the estate exceeding $50,000.

The proposed calculation of Estate Administration Tax would apply if an estate certificate is requested on January 1, 2020, or later.

Full Budget Document

The entire budget is available on this link.

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