Tax Credits For Homeowners in Ontario Canada

If you are a homeowner in Ontario Canada, there is a wide range of tax credits available to help reduce your property taxes. Some are government-funded and others are offered by municipalities.

The most popular credit is the Property Tax Credit, which can be applied for online. It is free and can save you up to $1,500.

Residential Property Tax Credit

The Residential Property Tax Credit is a government tax program that allows eligible homeowners to receive a tax credit on the provincial portion of their property taxes. This credit can be beneficial to first time home buyers and existing owners who have occupied their property as their primary residence for the year.

Under the Underused Housing Tax Act, certain non-Canadian residents (and some Canadian residents) owning residential property in Canada are required to file an annual return and pay a 1% tax on the value of the property. Despite these requirements, many owners of residential property are not aware of their potential filing obligations and tax liability under the UHT Act.

Owners of residential property who are not aware of their filing requirements and tax liability under the UHT Act should consult with a MNP Advisor for guidance before they sell, transfer, or otherwise dispose of residential property located in Canada. Additionally, residential property owners should be familiar with their potential obligation to file a UHT return and remit the applicable tax payment on time in order to avoid significant penalties.

Commercial Property Tax Credit

Commercial property tax rates are higher than residential ones, and many businesses are struggling to pay them. According to a report by Altus Group and the Real Property Association, the average commercial-to-residential tax ratio in Canada rose from 2.73 to 2.80 in 2022.

The Commercial Property Tax Credit (CPTC) provides a refund of the taxes paid by an owner of property that is used for commercial or industrial activity. This can be a good way to reduce your business’s property taxes, but it is not available for every type of business.

Another tax rebate program is the Vacancy Relief Allowance. This allows property owners to claim a tax refund for up to 50% of the total commercial realty taxes paid on vacant portions of their properties.

The Vacancy Rebate Program and the Subclass Reduction Program are administered by the local city/town hall. A property owner must submit an application to their local city/town hall for each year that a building or portion of a building is vacant. The deadline for these applications is February 28 of the following year.

Resource Property Tax Credit

If you own a building that was designated as a heritage resource, you may be able to get a tax credit on the property taxes you pay. In this case, the credit is equal to a percentage of the cost of restoring and maintaining the heritage property, or a fixed amount.

The credit is available for designated buildings that are listed in the Canada Heritage Register and are undergoing restoration or renovation work. In some cases, the credit will also apply to non-designated properties that have received a heritage conservation grant or have a certificate of registration from the Canadian Heritage Property Program.

The resource property tax credit is a one-time credit on the tax portion of your residential, commercial and municipal property taxes. It can be a great way to save money on your property tax bill.

Municipal Property Tax Credit

The Municipal Property Tax Credit Ontario Canada is a tax relief program designed to help low-income families. It provides a reduction on the amount of municipal property taxes paid by a family who earns low incomes or has a reduced net income from employment or social assistance.

Families who apply for this credit can reduce the total amount of tax they pay on their principal residence. This is an important program for many families that are struggling to make ends meet.

Property taxes are one of the main sources of revenue for local governments across the country. They are levied on residential, commercial and industrial properties.

In addition to property taxes, local governments collect income through sales and excise taxes. In Canada, property tax rates are based on a property’s assessed value (also known as its current value), which is determined by the Fair Assessment System.