Ontario Sales Tax Credit - Seniors’ Income Threshold Questions and Answers

The questions and answers below refer to the seniors’ income threshold, which was introduced to the administration of the Ontario sales tax credit (OSTC) program starting in Fall 2024.

1. What is the Ontario sales tax credit (OSTC) seniors’ income threshold?
2. Will the seniors’ income threshold be used in the calculation of the OSTC amount for my family?
3. Does the OSTC seniors’ income threshold apply for all tax years?
4. My spouse (or common-law partner) and I are both seniors. Who is eligible for the OSTC calculated using the seniors’ income threshold?
5. How is the OSTC calculated using the seniors’ income threshold?
6. My spouse is not a senior and their T1 return was assessed first, resulting in them receiving the OSTC amount for the family. I am a senior, will I be eligible for the OSTC calculated using the seniors’ income threshold?
7. My senior spouse who was receiving the OSTC family amount for the current benefit year passed away. I am not a senior, am I eligible for the OSTC now that my spouse is deceased and how will the amount be calculated?
8. My senior spouse and I separated during the current benefit year. Will we now both receive an OSTC payment and how will the amount be calculated?

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• 1. What is the Ontario sales tax credit (OSTC) seniors’ income threshold?

  The OSTC seniors’ income threshold applies in certain benefit years (see question 3) to seniors (at least 64 years old on December 31st of the applicable tax year) who are eligible to receive the OSTC on behalf of their families and have adjusted family net income within a specific range. When the seniors' income threshold applies, the OSTC threshold for seniors is higher than the threshold for non-senior families (i.e. standard income threshold).

  You must file an income tax and benefit return every year to be eligible for the OSTC.

• 2. Will the seniors’ income threshold be used in the calculation of the OSTC amount for my family?

  The OSTC seniors’ income threshold will be used to calculate the OSTC amount when the following rules apply:

  • You (or your spouse/common-law partner) must be 64 years old or older on December 31 of the tax year. For example, for the 2024 tax year, you (or your spouse/common-law partner) had to be at least 64 years old on December 31, 2024.
  • You must be in a qualified relationship (i.e. married or common-law relationship) or have a qualified dependant on the first day of the month.
  • The seniors' income threshold amount is greater than the standard income threshold amount for the applicable year.
  • If you are married or in a common-law relationship, the following rules apply:
    • Only one spouse is eligible for the OSTC.
    • If both you and your spouse are 64 years old or older on December 31 of the applicable tax year, the person who’s T1 return is assessed first is eligible for the OSTC. This does not apply if only one of you is 64 years old or older on December 31.
      • If the non-senior spouse’s return is assessed first, they will be eligible for the OSTC. However, if/when the senior spouse’s return is assessed, they will become the eligible OSTC recipient for the family and the non-senior spouse will be redetermined as the dual applicant.

• 3. Does the OSTC seniors’ income threshold apply for all tax years?

  No. The OSTC seniors’ income threshold is calculated annually. The result of this annual calculation determines whether the seniors’ income threshold is applicable or not for a specific tax year (i.e. if this amount is greater than the standard income threshold for the tax year).

  At this time, the senior’s income threshold is applicable to the 2020, 2023 and 2024 tax years.

• 4. My spouse (or common-law partner) and I are both seniors. Who is eligible for the OSTC calculated using the seniors’ income threshold? 

  If both you and your spouse (or common-law partner) are 64 years old or older on December 31 of the applicable tax year, the person who’s T1 return is assessed first is eligible for the OSTC and will receive the OSTC amount for the family, calculated using the seniors’ income threshold if it applies for that tax year.

• 5. How is the OSTC calculated using the seniors’ income threshold?

  If you are senior with a spouse or common-law partner and/or qualified dependant(s):

  • For payments based on your 2024 income tax and benefit return (July 2025 to June 2026), the program provides a maximum annual credit of $371 for each adult and each child in a family. The credit is reduced by 4% of your adjusted family net income (AFNI) over $36,497 (i.e. the seniors’ income threshold amount for the 2024 tax year).
  • For payments based on your 2023 income tax and benefit return (July 2024 to June 2025), the program provides a maximum annual credit of $360 for each adult and each child in a family. The credit is reduced by 4% of your adjusted family net income (AFNI) over $37,387 (i.e. seniors’ income threshold amount for the 2023 tax year).
  • For payments based on your 2020 income tax and benefit return (July 2021 to June 2022), the program provides a maximum annual credit of $316 for each adult and each child in a family. The credit is reduced by 4% of your adjusted family net income (AFNI) over $30,959 (i.e. seniors’ income threshold amount for the 2020 tax year).

• 6. My spouse is not a senior and their T1 return was assessed first, resulting in them receiving the OSTC amount for the family. I am a senior, will I be eligible for the OSTC calculated using the seniors’ income threshold?

  Yes. Considering that you are the senior in the family, when your T1 return is assessed, you will become the eligible OSTC recipient for the family. Your non-senior spouse will then be considered a dual applicant. OSTC amounts your spouse has received for the applicable tax year will have to be paid back to the CRA. A notice of redetermination will be issued to your spouse with the amount owed.

• 7. My senior spouse, who was receiving the OSTC family amount for the current benefit year, passed away. I am not a senior, am I eligible for the OSTC now that my senior spouse is deceased and how will the amount be calculated?

  If you meet the OSTC eligibility criteria, you are eligible for the OSTC the month after the date of death of your spouse. Future OSTC amounts will be calculated based on your current status (i.e. widow) and the OSTC standard income threshold will be used to calculate the amount you are entitled to.

• 8. My senior spouse and I separated during the current benefit year. Will we now both receive an OSTC payment and how will the amount be calculated?

  For OSTC payments after the date of separation, the OSTC amount will be calculated based on each spouse’s current status (i.e. single with or without dependant(s), adjusted family net income). As a non-senior, your OSTC amount will be calculated using the standard income threshold. If the senior spouse has a qualified dependant, their OSTC amount will be calculated using the seniors’ income threshold, otherwise the standard income threshold will be used. All OSTC eligibility criteria must also be met by each spouse.