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A Guide to Understanding the Ontario Trillium Benefit (OTB)

Ontario-Trillium-Benefit

Residents of Ontario with low to moderate incomes can receive a tax-free payment called the Ontario Trillium Benefit (OTB) to help with living expenses.

The Ontario Trillium Benefit is vital to Ontarians dealing with everyday living expenses like sales tax, property costs, and energy bills. 

General Eligibility Criteria for OTB

Residency:

  • You must be a resident of Ontario, meaning you ordinarily reside in the province.

 

Age:

  • You must be at least 18 years old.
  • If you are under 18, you may qualify if you have a spouse or common-law partner, or if you are a parent who resides or previously resided with your child.

 

Income Tax Filing:

  • You are required to file an annual income tax return. The Canada Revenue Agency (CRA) uses the information from your return to assess eligibility.

 

Income Requirements:

  • Benefit amounts are determined based on your adjusted family net income, which includes your spouse or common-law partner’s income if applicable.

 

Components of the Ontario Trillium Benefit

Ontario Sales Tax Credit (OSTC)

The Ontario Sales Tax Credit (OSTC) is a tax-free payment designed to help low- to moderate-income Ontario residents with the sales tax they pay. The main objective of the quarterly OSTC, which is a component of the larger Ontario Trillium Benefit (OTB), is to lessen the financial burden associated with sales tax.

Ontario Energy and Property Tax Credit (OEPTC)

The Ontario Energy and Property Tax Credit (OEPTC) is a provincial tax credit designed to help low- to moderate-income Ontario residents with the sales tax on energy and property taxes.

The Ontario Energy and Property Tax Credit is a crucial financial support system for residents facing significant energy and property-related expenses. By targeting assistance towards those most in need, the OEPTC helps create a more equitable support framework within Ontario’s tax system.

Northern Ontario Energy Credit (NOEC)

The Northern Ontario Energy Credit (NOEC) is a tax-free payment designed to help low- to moderate-income Northern Ontario residents with the higher home energy costs they face living in the north.
This credit is part of Ontario’s efforts to help low- to moderate-income individuals and families manage the financial burden of heating and electricity expenses, which can be significantly higher in the northern regions due to colder climates and increased energy demands.

How do I apply for the 2024 OTB?

You must file your 2023 income tax to receive the 2024 OTB.

Applying for the 2024 OSTC component is not required. The data from your 2023 return will be used by the Canada Revenue Agency (CRA) to ascertain your eligibility and entitlement. In family situations, the individual whose return is evaluated first receives payment for the OSTC portion of the OTB.

Complete the relevant sections of Form ON-BEN, Application for the 2024 Ontario Trillium Benefit, and Ontario Senior Homeowners’ Property Tax Grant to apply for the 2024 OEPTC and NOEC components on your 2023 return.

If you are eligible to receive the OTB, the CRA will notify you.

How to get the Ontario Trillium Benefit (OTB)

The ON-BEN Application Form, part of your tax return package, must be filled out and enclosed with your personal Income Tax and Benefit Return to be eligible for the Ontario Trillium Benefit each year. Even if you have no income to report, you still need to file your tax return.

The Canada Revenue Agency will assess your eligibility and inform you of your entitlement to the credit based on the data in your tax return.

 

Every year, April 30 is the deadline for filing your taxes.

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