Federal tax credits get most of the attention, but Ontario has its own set of credits that can significantly reduce your tax bill or add to your annual refund. Many newcomers miss these simply because they don't know they exist. Here's what's available and how to claim it.
Ontario Trillium Benefit (OTB)
The OTB is one of the most valuable provincial credits for renters and lower-income residents. It combines three credits:
Ontario Sales Tax Credit: Up to $362 per person, phasing out at higher incomes.
Ontario Energy and Property Tax Credit: Calculated based on the property tax or rent you paid. Renters receive 20% of rent paid as a proxy for property taxes. For an Ottawa renter paying $1,500/month, this translates to about $3,600 in qualifying expenses and a meaningful credit.
Northern Ontario Energy Credit: Only applies to residents north of a certain latitude, most Ottawa residents won't qualify for this one.
To claim the OTB, complete Schedule ON-BEN when you file your Ontario tax return. Enter your rent paid or property tax paid. The credit is paid monthly starting in July.
Ontario Child Care Tax Credit
If you pay for licensed child care in Ontario, daycare, nursery school, or an after-school program. You may qualify for the Ontario Child Care Tax Credit (CARE). The credit covers 20–75% of child care expenses up to $6,000 per child under 7, depending on your income. Lower incomes receive higher percentages. This stacks on top of the federal child care expense deduction.
Ontario Senior Homeowners' Property Tax Grant
Not applicable to most newcomers, but worth knowing for the future: Ontario offers a property tax grant of up to $500 for senior homeowners with lower incomes.
Ontario Staycation Tax Credit (Check Availability)
In recent years, Ontario has offered a temporary staycation credit for tourism spending within the province. Check the CRA and Ontario government websites to see if this credit is active for the tax year you're filing.
Disability Tax Credit (Federal + Provincial)
If you or a dependent has a severe physical or mental impairment, the federal Disability Tax Credit (DTC) reduces your federal and provincial tax. The application requires a certified medical practitioner to complete Form T2201. This is one of the highest-value credits in the system but requires advance planning.
Medical Expense Tax Credit
Both federal and Ontario credits allow you to claim medical expenses above a threshold. Eligible expenses include prescription drugs, dental work, eyeglasses, and certain therapies. Keep all your receipts throughout the year.
Newcomer-Specific Tip for Ottawa
Ottawa's settlement sector, organizations like OCISO, LASI World Skills, and the Catholic Immigration Centre, often run tax workshops in winter and spring specifically for newcomers. These sessions walk through Ontario-specific credits that are easy to miss. They're free and often available in multiple languages.
How to Claim Everything
Most of these credits are handled automatically by tax software. When you use Wealthsimple Tax or TurboTax, answer the interview questions honestly (Do you pay rent? Do you have children? Did you pay for child care?) and the software will apply every applicable credit. The key is not skipping sections.
Ontario's provincial credits may seem small individually, but they add up. A newcomer family paying rent in Ottawa with young children in daycare could realistically receive $2,000–$4,000 per year in combined provincial credits.
