What Is the Ontario Sales Tax Credit and How Does It Work?

Learn about the Ontario Sales Tax Credit, a refundable benefit for low- to moderate-income residents to offset sales tax costs.

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The Ontario Sales Tax Credit (OSTC) is a refundable tax credit aimed at helping low- to moderate-income individuals and families offset the cost of sales tax. To be eligible, you must be a resident of Ontario and meet certain income criteria. The credit is automatically applied when you file your income tax return, so make sure to complete it accurately. Payments are usually issued quarterly.

FAQs & Answers

  1. Who is eligible for the Ontario Sales Tax Credit? Residents of Ontario with low to moderate income who meet specific income criteria are eligible for the Ontario Sales Tax Credit.
  2. How do I claim the Ontario Sales Tax Credit? The Ontario Sales Tax Credit is automatically applied when you file your Ontario income tax return, so make sure to file accurately each year.
  3. When are Ontario Sales Tax Credit payments issued? Payments for the Ontario Sales Tax Credit are typically issued quarterly throughout the year.

Watch More

For more information on tax credits and benefits available in Ontario, explore our guides on the Ontario Trillium Benefit and filing income tax returns to maximize your entitlements.

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