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What's New
Ontario Sales Tax Credit
    Government of Ontario's tax package, including the HST, will create 591,000 additional new jobs, $47 billion in new business investment and increase the wages of workers across the province
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Ontario Improving its Graduated Licensing System and Getting Tougher on Drinking Drivers
    Since the Graduated Licensing System was introduced in 1994, the fatality rate among drivers 16 to 19 years of age dropped by 48 per cent
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Government wants to hear from Condominium Owners
    Survey will ask condo owners about the experiences they’ve had with condo buying, as well as with their condo corporations, boards of directors, repairs and maintenance, reserve funds and dispute resolution
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A Fun and Safe Summer on the Water for all Ontarians
    Government of Ontario is reviewing all of our recreational water safety initiatives
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HST: What's Taxable and What's Not
    Making Ontario competitive following the global recession
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Provincial News
Test Scores Rise For Ontario Students
    McGuinty Government Preparing Students For Future Success
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Ontario Attracts Clean Energy Manufacturing Plants
    McGuinty Government Brings Investment and up to 1,400 Jobs To Ontario
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Keeping Drivers Safe
    McGuinty Government Implements New Drinking And Driving Measures
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Consultations Begin On Public Sector Compensation
    McGuinty Government Takes Next Step In Plan To Manage Responsibly
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Province Takes Action on Eco Fees
    McGuinty Government Committed To Keeping Household Hazardous Waste Out Of Environment
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HST and income tax cuts: the single, most important thing we can do for our economy. Our five-year, Open Ontario plan will help create jobs and grow our economy.

Harmonized Sales Tax

On July 1st of this year, we're harmonizing the provincial PST and federal GST into a single, Harmonized Sales Tax (HST).

Why? Our current sales tax system is outdated and burdensome.

  • In the current system, sales tax is applied at every step of the process – from raw materials, to manufacturing, to retail. That 8% applied at one step gets taxed again at the next step! That's called a "cascading tax," and it's expensive. Right now, it gets passed on to consumers in the form of higher prices.
  • Businesses currently spend an extra $500 million per year on paperwork, submitting two sets of tax forms to two different levels of government. These costs also get passed on to consumers.

This doesn't make sense. Our competitors know it – that’s why 140 other countries have moved to a single, value-added tax system.

Our move to HST will eliminate both of these added costs, making Ontario businesses more competitive globally—and helping to create good jobs and boost our economy here at home. As we emerge from the global recession, it's more important than ever.

**You may have heard that the cost is going to go up "on everything." That's not true. In fact, 83% of the things you buy won't see any new tax! That includes your morning coffee, your kids' clothes (and your clothes), and your cell phone bill. For more information about exemptions, please click here.

Income Tax Cuts

And as part of our comprehensive tax plan, we've cut personal provincial income tax for 93% of Ontario taxpayers as of January 1st.

  • 90,000 low-income Ontarians will no longer pay provincial income tax.
  • Families and individuals with up to $80,000 of income are getting an average personal income tax cut of 10%.
  • Eligible families with an annual income of up to $160,000 will get three transition payments totalling $1,000 to help with the move to HST.
  • Eligible individuals with an annual income below $80,000 will get three transition payments totalling $300.
  • Our new, permanent sales tax credit of up to $260 for each adult and child per year will benefit almost 3 million low-income Ontario families.

Our tax reform package is a comprehensive solution that will help our economy in these challenging times, while helping families through the transition and providing permanent personal income tax cuts. It's good for business, and it's good for families.

Learn more about comprehensive tax package Ontario's