The Ontario Trillium Benefit (OTB) is a provincial program that combines three benefits into one to help low- to moderate-income residents of Ontario offset the costs of sales tax, property taxes, and energy bills. This article provides a comprehensive overview of the OTB program, including eligibility requirements, payment details, and how much you can expect to receive.
Understanding the Ontario Trillium Benefit
The OTB combines the following three benefits:
- Ontario Sales Tax Credit (OSTC): Helps offset the provincial sales tax paid on goods and services.
- Ontario Energy and Property Tax Credit (OEPTC): Helps offset property taxes and the sales tax paid on energy bills.
- Northern Ontario Energy Credit (NOEC): Provides a tax-free benefit to residents of Northern Ontario to help with higher energy costs.
You can qualify for the OTB by meeting the eligibility requirements for at least one of these three credits.
Who is Eligible for the Ontario Trillium Benefit?
The eligibility requirements for the OTB vary depending on the specific credit you qualify for. Here’s a breakdown:
- Ontario Sales Tax Credit (OSTC):
- You must be 19 years of age or older.
- You must be a resident of Ontario.
- You must be married, in a common-law relationship, or divorced.
- You must be a parent who lives or has previously lived with your child.
There is no separate application needed for the OSTC. The Canada Revenue Agency (CRA) will assess your eligibility automatically based on the information in your tax return.
- Ontario Energy and Property Tax Credit (OEPTC):
- You must be 18 years of age or older.
- You must have lived in Ontario on December 31 of the previous year.
- You must meet at least one of the following criteria:
- Paid property tax or rent for your main residence.
- Paid accommodation costs for living in a nursing home.
- Paid energy costs while living on a reserve.
- Lived in a designated university, college, or private school residence in the previous year.
To apply for the OEPTC, you need to complete Form ON-BEN (Application for the Ontario Trillium Benefit and the Ontario Senior Homeowners’ Property Tax Credit) along with your previous year’s tax return.
- Northern Ontario Energy Credit (NOEC):
- You must meet the same residency requirement as the OEPTC (lived in Ontario on December 31 of the previous year).
- You must meet at least one of the following criteria:
- Paid property tax or rent for your main residence.
- Paid accommodation costs for living in a nursing home.
- Paid energy costs while living on a reserve.
Similar to the OEPTC, you need to complete Form ON-BEN to apply for the NOEC.
Important Note: You must re-apply for the OTB (including the OEPTC and NOEC) every year at tax time.
How Much Can You Expect to Receive from the OTB?
The amount you receive from the OTB depends on several factors, including:
- Your family’s net income from the previous tax year.
- Your age.
- Your marital status.
- Your family size.
- The amount of property taxes you paid.
- Your accommodation costs (if applicable).
- Whether you live in Northern Ontario (for NOEC).
The benefit payment period runs from July of one year to June of the following year. For example, the 2023/2024 benefit period runs from July 2023 to June 2024.
The CRA typically issues OTB payments via direct deposit. You can set up your direct deposit information through the CRA MyAccount service. If you don’t have direct deposit set up, the CRA will mail you a cheque.
Here’s a breakdown of the maximum amounts you can receive for each credit within the OTB program (as of 2023/2024):
- Ontario Sales Tax Credit (OSTC):
- Maximum of $345 per adult and child.
- The amount is reduced based on your adjusted household net income exceeding specific thresholds.
- Ontario Energy and Property Tax Credit (OEPTC):
- Maximum of $1,194 for individuals aged 18-64. (This is broken down as $265 for energy costs and $929 for property taxes).
- Maximum of $1,360 for seniors aged 65 and older. (This is broken down as $249 for energy costs and $1,095 for property taxes).
- Maximum of $265 for individuals living on a reserve or nursing home.
- Maximum of $25 for students living in a designated college, university, or private school residence.
- Northern Ontario Energy Credit (NOEC):
- Maximum of $172 for single individuals with no children.
- Maximum of $265 for families.
- The amount is reduced based on your adjusted net income exceeding a specific threshold.
Resources to Estimate Your OTB Benefit
- Canada Child and Family Benefits Calculator (for estimating OSTC): You can use the federal government’s Child and Family Benefits Calculator to get a rough estimate of your potential OSTC amount.
- 2023 OEPTC Calculation Sheets: The CRA website provides downloadable calculation sheets to help you estimate your potential OEPTC benefit.
- 2023 NOEC Calculation Sheets: Similar to the OEPTC, the CRA offers downloadable calculation sheets for estimating your NOEC benefit.
When Are OTB Payments Issued?
OTB payments are typically issued on the 10th of each month throughout the benefit period, starting from July of the previous year. Here are the specific payment dates for the 2023/2024 benefit period:
- December 8, 2023
- January 10, 2024
- February 9, 2024
- March 8, 2024
- April 10, 2024 (today’s date is April 29, 2024)
- May 10, 2024
- June 10, 2024
- July 10, 2024
- August 9, 2024
- September 10, 2024
- October 10, 2024
- November 8, 2024
- December 10, 2024
Important Note: If your total annual OTB benefit is $360 or less, you will receive it as a lump sum payment at the beginning of the benefit period (July). Alternatively, if your annual benefit is more than $360, you can choose to receive it as a single lump sum payment at the end of the benefit period (June).
Other Important Things to Know About the OTB
- The OTB is not taxable: The benefit amount you receive is tax-free and will not be included in your taxable income.
- The CRA may use your OTB to offset debts: If you owe the CRA money for unpaid taxes or overpayments from other benefits, they may use your OTB payment to settle the debt. You will only receive the remaining amount (if any) after your debt is paid.
- You can get back pay for the OTB: If your tax return is assessed after June 10th of a particular year, your first OTB payment will include any amounts owing from previous months. You will typically receive this back pay within 4-8 weeks of your tax return assessment.
Additional Benefits for Ontario Residents
This article has focused on the Ontario Trillium Benefit, but there are other provincial benefits available to Ontario residents who qualify. Here’s a brief overview of two additional programs:
- Ontario Child Benefit (OCB): This benefit provides additional financial support to families with children on top of the standard Canada Child Benefit (CCB). The CRA automatically assesses your eligibility for the OCB when you file your income tax return.
- Ontario Guaranteed Annual Income System (GAINS): This benefit offers monthly payments to low-income Ontario seniors. The CRA automatically assesses your eligibility for GAINS if you receive Old Age Security (OAS) and Guaranteed Income Supplement (GIS) payments.