The Ontario Trillium Benefit is based on three different credits, which help individuals with their sales tax, property tax, and energy tax costs. Ontario Energy and Property Tax Credit provides a maximum of $1,248, $360 is given to eligible people for Ontario Sales Tax Credit and $277 for Northern Ontario Energy Credit.
Ontario Trillium Benefit
The Ontario Trillium Benefit (OTB) is a financial support program for the low to moderate-income residents of Ontario to manage their energy costs, property taxes, and sales taxes. This benefit is a combination of three different credits including Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit, and Northern Ontario Energy Credit.
The Ontario Trillium Benefit is a tax-free payment and is provided on the 10th of each month to qualifying individuals. The eligibility criteria and amounts of three credits are different which are discussed thoroughly in this article. This benefit amount is calculated based on individuals’ age, income, household size, residency, and amount paid in rent or property tax.
What are the Ontario Trillium Benefit Credits and how much these credits provide?
There are three Ontario Trillium Benefit Credits and the amount of all credits are different which is discussed below:
Ontario Sales Tax Credit
- This benefit payment is provided to eligible individuals to help with the cost of sales tax they pay. Individuals’ GST and HST credit are not affected by this credit, and it provides up to $360. Additionally, this credit will provide you an extra $360 for your spouse or common-law partner and every dependent child whose age is under 19 years on the first month of payment.
Ontario Energy and Property Tax Credit
- If individuals are suffering from property taxes and sales tax on energy costs then this tax-free credit will be very helpful. The amount that individuals receive depends on their income and the amount of property tax or rent they pay. The different amounts of Ontario Energy and Property Tax Credit are as follows:
- $1,248: If individuals are between 18 to 60 years old.
- $1,421: If individuals are about 65 or above.
- $277: If individuals are living on reserve or in a public long-term care home
- $25: If you live in an education centre’s residence.
Northern Ontario Energy Credit
- If individuals are suffering from high energy costs and they meet the certain required eligibility criteria for this credit then applying for this credit is the best option to choose. The maximum Northern Ontario Energy Credit amount for single individuals is $180 and $277 for families. This credit is available for the Ontarians who live in:
- Sudbury
- Thunder Bay
- Nipissing
- Parry Sound
- Kenora
- Algoma
- Cochrane
- Manitoulin
- Rainy River
- Timiskaming
Who is eligible to receive the Ontario Trillium Benefit?
The general eligibility criteria for OBT benefits for all the credits and the credit-wise specific requirements are discussed below for the ease of candidates to check before starting the application process. The general criteria will be the same requirements for all three credits.
General Criteria for all Credits:
- Individuals must be 19 years old or above for the Ontario Sales Tax Credit and 18 years or above for others.
- Individuals must be residents of Ontario or Northern Ontario on the previous year of December 31, to qualify for these credits.
- Individuals must have had a spouse or common-law partner or be a parent who lives or previously lived with their child.
Specific Criteria for Sales Tax Credit & Energy and Property Tax Credit:
- Individuals must be on one of the following conditions in the previous year;
- Individuals must have paid their main home property tax, they must have paid their home’s energy cost, and lived on a reserve.
- Individuals have paid their accommodation charges if they lived in a public long-term care home.
When does the Ontario Trillium Benefit be paid, and how do people receive it?
Eligible Individuals typically receive their OTB credits on the 10th of each month, and if the 10th of any month falls on a weekend or holiday, then the payment is provided on the previous business day. If individuals’ payment is $360 or less then they can receive this amount as a lump sum on the first month of payment.
Ontario Trillium Benefit starts in July of the current year and ends in June of the following year. Individuals can receive their qualifying credit payments through direct deposit or cheque. People on direct deposit receive their payment quickly and timely, while the check can take longer to approach them.