New provincial tax changes Canadians need to know for the 2019 tax season


We know, we’re a bit ahead of the game. Though it’s not 2020 quite yet, it will be soon, which means that a lot of change is on the horizon. New resolutions, new goals and our personal favourite a new tax season.

Since the last tax season, there’s been a lot of change that may affect your tax filing. That’s why we’re here.

When Canada’s taxes change, you can count on us to do the hard work to help you understand what the new rules are and how they can impact you.

The Ontario edit.

  • First, the low-income individuals and families (LIFT) credit is designed so that tax payers who only earn minimum wage (with no other sources of income) do not pay provincial tax. Taxpayers who qualify will get an average of $450 back in the bank.
  • There’s also the childcare access and relief from expenses (CARE) refundable tax credit. If you are a parent or caregiver living in Ontario and have a net family income of less than $150,000, you’ll see a change in your refund – a good change we might add. The CARE tax credit will be based on a taxpayer’s family income and eligible childcare expenses, which will result in significantly larger refunds for lower to middle income tax payers in Ontario. The result? An average of $1,250 per family for some 300,000 households in Ontario.
  • The low down on New Brunswick.

    Back in 2017, the New Brunswick government eliminated the tax credit for tuition fees and the education amount. With a new government now in place, tax credit for strictly tuition fees is now restored.

    But wait, that’s not all. They have also decided to apply it retroactively so that students will not only be able to claim tuition fees in 2019, but also claim any fees paid in 2017 and 2018 as a carry forward on their 2019 tax return. More money in the bank!

    British Columbia in a snapshot.

    The grass isn’t always greener on the other side and that statement holds up this time around for post-secondary students in BC. The provincial government has announced its decision to eliminate the education credit effective for 2019. This doesn’t apply to tuition fees though, so don’t worry, you can still claim those costs to help reduce your taxes.

    The 411 on Alberta.

    The new government of Alberta has bid farewell to the provincial carbon tax. What does this mean? Well, the Alberta Leadership Adjustment Rebate, which lower-to-middle income taxpayers used to receive quarterly in the mail, has been eliminated effective July 1, 2019.

    It’s not all bad news though. On the bright side, the federal government will be imposing its own carbon tax in Alberta effective January 2020. As a result, all taxpayers in Alberta – not just lower-income ones – will now receive the Climate Action Incentive on their tax returns.

    The Alberta government just presented their new budget, and we’ve got those details right here.

    Climate Action Incentive beyond Alberta.

    The Climate Action Incentive will be significantly increased for taxpayers in the other provinces where the federal government offers it. This includes Ontario, Manitoba and Saskatchewan. How does the amount you receive compare based on your family composition and by year?

    We break it down for you in the table below. To learn more about how the Climate Action Incentive works, click here.

    Climate Action Incentive Increases

    Ontario
    2018    2019 2020 2021
    First Adult $154 $224 $295 $360
    Spouse $77 $112 $147 $180
    Child $38 $56 $73 $89
    Family of 4 $307 $448 $588 $718
    Manitoba
    2018 2019 2020 2021
    First Adult $170 $243 $328 $402
    Spouse $85 $121 $164 $201
    Child $42 $61 $81 $99
    Family of 4 $339 $486 $654 $801
    Saskatchewan
    2018 2019 2020 2021
    First Adult $305 $405 $596 $731
    Spouse $152 $202 $297 $364
    Child $76 $101 $148 $182
    Family of 4 $609 $809 $1189 $1459
    Alberta
    2018    2019 2020     2021
    First Adult N/A $444 $496 $600
    Spouse N/A $222 $248 $300
    Child N/A $111 $124 $150
    Family of 4 N/A $888 $992 $1200

    Since money doesn’t grow on trees, it’s important to build a foundation of tax knowledge to help you understand how you can get the most out of your tax return.

    Regardless of if you’re from the east or the west, we’re here to help you. If you have any questions or want to learn more on how to get the most from your tax return, visit an H&R Block office near you.