What Matters To You Today
Single Sales Tax
Starting on July 1, 2010, you’ll see a single sales tax — 13%. We’re combining the 5% GST collected by the federal government with the 8% PST collected by the Ontario government.
This is a big, important change that will make Ontario more attractive to businesses. We know this change will not be easy. That’s why we’re helping with the transition:
- 93% of Ontario taxpayers will get a permanent income tax cut.
- Families (including single parents) earning under $160,000 will receive three payments totalling $1,000.
- Point-of-sale rebates will be introduced for children’s clothing and footwear, diapers, children’s car seats and car booster seats, books and feminine hygiene products.
- The single sales tax will not be charged on some items, including basic groceries, prescription drugs and medical devices.
- A new sales tax credit will be similar to the GST rebate for low-income families.
Our entire package of tax reforms means:
- Ontario becomes more a more attractive place for businesses to invest, meaning more jobs in our province
- the majority of Ontario families will receive personal income tax cuts to help manage new costs at the cash register
- lower compliance costs for business
- a modern value-added tax system
Ontario is facing its greatest economic challenge in 80 years. Families are anxious, and that’s why it’s more important than ever to work together.
A single sales tax helps build a strong economy. And a strong economy pays for all the things — like schools and hospitals — that make up a caring society.
Learn more about the 2009 Ontario Budget.
Questions and Answers
Why are you adding a new tax on goods and services you didn’t tax before?
We’re merging two taxes into one.
Right now, there’s no PST on some purchases — you just pay the 5% GST. To make the single sales tax work, the 13% single sales tax will generally be charged on everything that has GST.
People will pay more for some items at the cash register. To make the transition as smooth as possible, 93% of Ontario taxpayers will benefit from a personal income tax cut.
This change won’t be easy. Change never is. But it’s absolutely essential if we’re going to make Ontario more attractive to businesses.
I’m a member of a low income family and can't afford any new price hikes. What is the government doing to help me?
This change will not be easy. Change never is. But it’s absolutely essential if we’re going to make our province more attractive to new business investment. We’re going to do our part to make the transition as smooth as possible for families across the province.
93% of Ontario taxpayers will benefit from a personal income tax cut.
Families (including single parents) making less than $160,000 will receive three payments totalling $1,000.
Individuals earning less than $80,000 will get three payments totalling $300.
Low-income families will also get a new sales tax credit of $260 per adult and child.
Our tax changes will leave our government with $2.3 billion less revenue over the next four years. While that shortfall will creative its own set of challenges, we feel strongly that it’s a price worth paying if we truly want Ontario to prosper.
Want to know more? Try the personal tax savings calculator.
Own or manage a business? Use this Business Calculator to find out which business tax benefits your company may be eligible to receive.
In these hard economic times, how could you add an additional stress to those who have lost their jobs?
The budget moves Ontario from an inefficient “two tax” system to a modern, single sales tax.
By merging two taxes with different rules into one sales tax with one set of rules, we’re reducing red tape – and creating new incentives for Ontario businesses to grow and for new businesses to locate here.
Moving to a single sales tax is the single most important step we can take to make Ontario more attractive to businesses. As already proven in the Atlantic provinces, a single sales tax will mean more business investment in Ontario and, ultimately, more jobs for Ontarians.
To help families, we will introduce point-of-sale rebates on important items like children’s clothing and footwear, children’s car seats, diapers, feminine hygiene products and books.
To help with the adjustment, 93% of Ontario taxpayers will get a permanent income tax cut, and families (including single parents) will receive three payments totalling 1,000.
And finally, for low-income families, we will have a new sales tax credit.
The overwhelming majority of families will come out ahead because of the tax changes we are making.
Learn more about the 2009 Ontario Budget and the proposed single sales tax.
Have a question? You can send a message to me through this website.
