Overview

The Low-Income Workers Tax Credit (known as Low-income Individuals and Families (LIFT) Tax Credit) is a non-refundable tax credit that you can use to reduce or eliminate your Ontario personal income tax, excluding the Ontario Health Premium.

Who is eligible

Low-income tax filers, including those earning minimum wage, can claim the credit.

To qualify:

  • you must be a Canadian resident in any province or territory at the start of the tax year
  • you must be an Ontario resident by the end of the tax year
  • you must have employment income
  • you must owe Ontario personal income tax
  • your individual adjusted net income for the year must be below $50,000 (previously $38,500 for the years 2019, 2020 and 2021)
  • your adjusted family net income for the year must be below $82,500 (previously $68,500 for the years 2019, 2020 and 2021)
  • you must not have spent more than six months in prison during the year

How to claim it

You can claim it each year when you file your personal Income Tax and Benefit Return. On the tax return it is called the Low-income Individuals and Families Tax Credit.

How it is calculated

2022 – onward

The maximum credit you can receive is $875 or 5.05% of your employment income, whichever is lower.

This maximum amount is then reduced by 5% of the greater of your:

  • adjusted individual net income over $32,500
  • adjusted family net income over $65,000

You may receive a reduced credit if your:

  • individual adjusted net income is between $32,500 and $50,000
  • adjusted family net income is between $65,000 and $82,500

2019, 2020 and 2021

The maximum credit you can receive is $850 or 5.05% of your employment income, whichever is lower.

This maximum amount is then reduced by 10% of the greater of your:

  • adjusted individual net income over $30,000
  • adjusted family net income over $60,000

You may receive a reduced credit if your:

  • individual adjusted net income is between $30,000 and $38,500
  • adjusted family net income is between $60,000 and $68,500

A single person who works full time at minimum wage (earning nearly $30,000) with no other income will:

  • receive $850 in tax relief
  • pay no Ontario personal income tax

Those who earn more than $30,000 will receive less than $850 or no tax relief from this credit.

Contact the Canada Revenue Agency

If you have questions about the credit, please contact the Canada Revenue Agency:

More information is also available on the Canada Revenue Agency website.