Ontario Trillium Benefit (OTB) and the Ontario Energy and Property Tax Credit (OEPTC)

Filing taxes can feel complicated — especially when it comes to provincial benefits. Two important credits every Ontario resident should know about are the Ontario Trillium Benefit (OTB) and the Ontario Energy and Property Tax Credit (OEPTC). These programs are designed to help reduce the financial burden of energy costs and property taxes for eligible individuals and families.

🔹 What Is the Ontario Trillium Benefit (OTB)?

The Ontario Trillium Benefit (OTB) is a combined payment that brings together three provincial tax credits into one monthly (or annual) benefit:

1. Ontario Sales Tax Credit (OSTC)
2. Ontario Energy and Property Tax Credit (OEPTC)
3. Northern Ontario Energy Credit (NOEC)

If you're eligible for any of these credits, the OTB simplifies your receipt of them by paying them together.

💡 Note: The OEPTC — which we explain below — is part of the OTB.

🔹 What Is the Ontario Energy and Property Tax Credit (OEPTC)?

The Ontario Energy and Property Tax Credit (OEPTC) helps low-to-moderate income individuals and families with:

• Energy costs (heating bills in winter and cooling in summer), and
• Property tax expenses (or the rent paid that includes property tax).

It targets people who pay a significant portion of their income on these costs.

👤 Who Is Eligible?

You may be eligible for the OEPTC if you:

• Are a resident of Ontario on December 31 of the tax year,
• Are at least 18 years old (or have a spouse/common-law partner), and
• Meet the income guidelines set by the government.

Children and students can also qualify in specific situations when included on an eligible parent’s return.

💡 What Does OEPTC Help With?

The credit is based on three main things:

1. Your family net income (from your tax return)
2. Amount of rent you paid (if you rent)
3. Property tax and energy costs you paid

It provides extra support to those who:

• Rent or own a home,
• Face high heating/cooling bills,
• Have rising property taxes,
• Live on a lower or fixed income.

📅 When Do You Get the Benefit?

Once your tax return is filed and assessed by the Canada Revenue Agency (CRA), eligible OTB/OEPTC payments are issued. Typically:

• You can receive payment monthly (July–June) or
• In a lump sum after your return is assessed.

It’s important to file your income tax return on time — even if you earned little or no income — to ensure you don’t miss out on benefits.

📑 Why Filing Matters (Even With Low Income)

Some people think that because they didn’t earn much money, filing a tax return doesn’t matter. But:

✅ Filing ensures you’re assessed for benefits like the OTB and OEPTC
✅ You can receive hundreds (or even thousands) in credits
✅ Payments help with real expenses like rent, energy bills, and taxes

Bottom line: Filing taxes on time can put money back into your pocket.

📉 When Do You Start Losing the Benefit?

Both the OTB and OEPTC are reduced once your family net income passes certain thresholds. The reduction rate is typically around 2% to 4% of income over the threshold, depending on family situation.

Below are general 2024–2025 estimates:

🔹 Ontario Sales Tax Credit (OSTC) – Part of OTB

The Ontario Sales Tax Credit starts reducing when:

• Single individuals: approximately $27,000 – $30,000
• Families/couples: approximately $35,000 – $40,000

Most single individuals stop receiving it entirely around:

• $45,000 – $50,000

For families, it can phase out around:

• $55,000 – $65,000

(Varies depending on number of children.)

🔹 Ontario Energy and Property Tax Credit (OEPTC)

The OEPTC income phase-out depends on whether you rent or own and your age.

For Individuals Under 65:

• Reduction begins around $25,000 – $30,000
• Benefits are often eliminated around $45,000 – $55,000

For Seniors (65+):

Seniors receive enhanced amounts.

• Reduction begins around $30,000 – $35,000
• Phases out closer to $60,000 – $65,000

For Families:

• Reduction typically begins around $35,000 – $40,000
• Phases out between $60,000 – $75,000, depending on number of children and housing costs

🧮 Example

If a single renter earns:

• $22,000 → Likely receives full OEPTC + OSTC
• $32,000 → Receives reduced amount
• $50,000 → Likely fully phased out

If a family of four earns:

• $38,000 → Likely receives a significant benefit
• $55,000 → Reduced benefit
• $70,000+ → Possibly phased out

⚠ Important Notes

• The benefit is based on family net income, not just your personal income.
• Income includes employment income, self-employment income, rental income, etc.
• Thresholds are indexed annually and may increase slightly each year.
• Even if you think you earn “too much,” it is still worth filing — many families are surprised they qualify.

📌 Why This Matters

As income increases, the benefit does not disappear immediately — it gradually reduces. This means even moderate-income families may still qualify for partial support.

The only way to know for sure?
File your tax return accurately and on time.