The taxable income thresholds in all three Ontario provincial tax brackets and most provincial non-refundable tax credit amounts were increased by 3.3% in 2012, reflecting changes to Canada’s consumer price index (CPI) in Ontario.
New income tax bracket
A fourth personal income tax rate has been added for taxable income over $500,000. Starting in 2012, Ontarians will be taxed at a rate of 12.16% on the portion of their income over $500,000. This rate will increase to 13.16% in 2013.
Healthy home renovation credit
The refundable healthy home renovation tax credit has been introduced in 2012. The credit is designed to assist seniors with the cost of permanent home renovations required to improve accessibility or assist with mobility to and within their home. Seniors or their family members can claim up to $1,500, regardless of income, to cover eligible expenses. New Schedule ON(S12) is used to calculate this credit.
The labour sponsored investment fund tax credit has been eliminated.