The Low-Income Individuals and Families Tax (LIFT) Credit is a non-refundable tax credit available to Ontario residents. It is designed to reduce or eliminate provincial personal income tax for people with employment income who are in low- to moderate-income households.
How It Works
The LIFT credit is calculated based on employment income and family income. It gradually phases out as income rises, meaning higher-income individuals receive little or no benefit. The credit is applied when filing the annual Ontario personal tax return.
Why It Matters
- Supports workers: Provides tax relief to low-income employees and families.
- Encourages employment: Targets people earning employment income rather than non-employment income.
Final Thoughts
The LIFT credit helps reduce the tax burden for Ontario’s lower-income workers. It ensures more people keep their earnings, supporting affordability and financial stability.