Last updated: May. 5, 2022
Last week, Ontario Finance Minister, Peter Bethlenfalvy, tabled the province’s fiscal 2022–23 budget.
Titled Ontario’s Plan to Build, budget 2022 introduces measures to rebuild Ontario’s economy, support workers, build highways and key infrastructure, reduce costs on everyday expenses, and increase healthcare capacity to keep the province open.
The government is forecasting the following deficits:
- $13.5 billion in 2021-22
- 19.9 billion in 2022-23
- $12.3 billion in 2023-24
- $7.6 billion in 2024-25.
The budget does not propose any new changes to the corporate or personal tax rates.
Personal Tax Measures
Personal Income Tax Rates – No Change
Ontario’s provincial personal income tax rates are as follows:
For taxable income in excess of $150,000, the 2022 combined federal–Ontario personal income tax rates are outlined below.
Personal tax credits for 2022
The maximum tax credit amounts and actual Ontario tax credits for 2021 and 2022 are set out below.
Corporate Tax Measures
Corporate tax rates – No Changes
The combined federal and Ontario corporate income tax rates are as follows:
Regional Opportunities Investment Tax Credit
The Regional Opportunities Investment Tax Credit was introduced in March 2020 to help lower costs for businesses seeking to expand and grow in areas of the province where employment growth in the past was slower than the provincial average.
This tax credit supports corporations that build, renovate, or purchase eligible commercial or industrial buildings in qualifying areas of Ontario.
In last year’s budget, the government proposed to temporarily double the regional opportunities investment tax credit rate to 20% from 10%. Budget 2022 extends the temporary increase for an additional year.
OTHER MEASURES (Not Related To Income Tax)
HST – Harmonized Sales Tax
The budget proposes no changes to the current 13% HST rate, which is composed of a 5% federal and an 8 % provincial component.
Gas and Fuel Taxes
On April 14, 2022, gasoline and fuel tax rate reductions were enacted for the period beginning on 1 July 2022 and ending on 31 December 2022. The gasoline tax rate is reduced from 14.7¢ per litre to 9.0¢ per litre, while the tax rate on clear fuel, which includes diesel, is reduced from 14.3¢ per litre to 9.0¢ per litre.
Notable Items for Small Business Owners
To continue growing Ontario’s venture capital sector and support high-value technology companies, Venture Ontario’s venture capital funding will increase from $100 million to $300 million. The additional funding would be invested in businesses in sectors including life sciences, clean technology, information technology, and artificial intelligence.
The budget has allocated $1 billion annually to be invested in employment and training programs and an additional $114.4 million over three years in the Skilled Trades Strategy.
The provincial government has proposed to increase the general minimum wage from $15 to $15.50 an hour, effective October 1, 2022.
Notable Items for Agriculture
Enhanced Agri-Food Workplace Protection Program
The budget has allocated $10 million in 2022–23 for ongoing support and expansion of the Enhanced Agri-Food Workplace Protection Program to help farms and agri-food operations take additional measures to support the health and safety of agri-food workers.
Livestock Producers – Emergency Support
The budget has allocated $5 million in 2022–23 for emergency support initiatives to help livestock producers if emergency processing disruptions occur.
International Agriculture Workers
Protecting the health and safety of incoming international agricultural workers through a $2.6 million investment that will include a welcome centre with health resources, as well as additional vaccination clinics.
Other Notable Highlights
Ontario childcare deal
The federal and provincial governments have agreed to a new Canada-wide Early Learning and Child Care System. This is expected to reduce the average cost of childcare to $10-a-day by September 2025.
Ontario License Plate Renewal Fees and Stickers
The license plate renewal fees and the requirement to have a license plate sticker for passenger vehicles, light-duty trucks, motorcycles, and mopeds was eliminated effective March 13, 2022 and eligible individual owners were refunded any fees paid since March 2020. Eliminating this measure is anticipated to cost Ontario $1.8 billion in 2021-2022, and an average of $1.1 billion in lost revenue annually going forward.
Real Estate Developers
The provincial government has proposed numerous measures to discourage unethical behaviour by condominium developers and home builders by increasing fines and penalties.
University Tuition Freeze Extended
The provincial government has extended the current tuition freeze for universities and colleges by an additional year, to include the 2022-2023 academic year.
FBC was founded on the belief that Canadians should receive every benefit of filing their taxes. Three-generations later, our family-owned business continues to support farmers, truckers, trades and other small businesses minimize their taxes, simplify their books, and pay their employees.
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