Tax Cuts and Credits

EMPLOYER HEALTH TAX:

Doubling the Employer Health Tax (EHT) exemption in 2020 and 2021.

  • Through this change, about 57,000 private-sector employers would pay less EHT in 2020, including about 30,000 more who would not pay EHT this year.
  • This amounts to a tax cut of $355 million.

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BUSINESS EDUCATION TAX:

As part of the new budget, the government has lowered and standardized the highest level of the Business Education Tax to 0.88%, a decision that will save 94% of Ontario businesses a collective $450 million dollars


PROPERTY TAX RELIEF:

Beginning in 2021, municipalities will be able to adopt a new optional property subclass for small business properties. The small business property subclass will allow municipalities to target tax relief by reducing property taxes to eligible small business properties The Province will also consider matching these municipal property tax reductions in order to provide further support to small businesses.


CANCELLING THE WINE AND BEER TAX:

The government is freezing beer tax rates until March 1, 2022, and is proposing to retroactively cancel the increase in wine basic tax rates legislated to occur on June 1, 2020. The government is also committed to explore options to permanently allow alcohol to be included in food take-out and delivery orders before the existing regulation expires on December 31, 2020.


REGIONAL OPPORTUNITIES INVESTMENT TAX CREDIT:

Taking aim at regional economic disparities through the launch of a proposed new Regional Opportunities Investment Tax Credit.

  • Available to eligible businesses that build, renovate or acquire qualifying commercial and industrial buildings in designated regions of the province, saving them up to $45,000.

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