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Ontario Sales Tax Credit 2026: New $378 Max Explained

By September 2, 2026 No Comments
Sales Tax CreditSales Tax Credit
Disclaimer: This article is for informational purposes only and does not constitute tax or financial advice. Consult a qualified accounting professional before making any tax or financial decisions.

Quick answer

For the 2026-27 benefit year, the Ontario Sales Tax Credit (OSTC) maximum is $378 per adult and $378 per dependent child under 19, up from $371 the previous year. A family of four can receive up to $1,512 annually if adjusted family net income is at or below $36,309. Above that threshold, the credit is reduced by 4% of every dollar of income; for single filers with no children, the reduction starts at $29,047. Payments are issued monthly on the 10th as part of the Ontario Trillium Benefit, with no separate application required beyond filing your 2025 income tax return.

Why the OSTC just went up and what it means for your July deposit

If your Ontario Trillium Benefit deposit was a few dollars higher this July, you are not imagining it. The Ontario Sales Tax Credit (OSTC), one of three programs bundled into the monthly Ontario Trillium Benefit (OTB), increased from $371 to $378 per eligible person for the 2026-27 benefit year.

The change comes from the Canada Revenue Agency’s annual indexation adjustment, which raised most benefit amounts by 2% this cycle. That is lower than the 2.7% bump recipients saw in 2025-26, but the direction is the same: your entitlement climbs each July, provided you filed your 2025 tax return on time. This article covers exactly what your household can expect this benefit year, part of the broader wave of CRA benefit adjustments in 2026.

$378Maximum per eligible person, 2026-27
+$7Increase from the 2025-26 maximum
2%CRA indexation applied this cycle
$1,512Maximum for a family of four
ClearWealth Accounting Advisors
What changed between the 2025-26 and 2026-27 OSTC
Year-over-year comparison of maximums, thresholds, and indexation
OSTC element2025-26 benefit year2026-27 benefit year
Maximum per eligible person$371$378
Phase-out start — single, no children$28,255$29,047
Phase-out start — single parent or family$35,319$36,309
Reduction rate above threshold4%4%
CRA indexation applied2.7%2.0%
Per-person increase
+$7
Family of 4 increase
+$28
Indexation direction
Down
Source: Canada Revenue Agency — Indexation of personal income tax and benefit amounts. Prior-year thresholds sourced from CVITP Assist (CRA-affiliated training material). ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.

Quick start: pick your household type

Direct answer: The maximum OSTC per person is $378 for the 2026-27 benefit year. A single adult can receive up to $378; a couple with two children under 19 can receive up to $1,512. The credit begins to phase out at $29,047 of adjusted net income for single filers with no children, or $36,309 for single parents and couples.

Your OSTC entitlement depends on two things: how many people are in your household, and your adjusted family net income. Use the boxes below to find your starting point.

Single adult, no children
Maximum $378 per year. Phase-out starts at adjusted net income of $29,047.
Single parent
Maximum $378 for you plus $378 for each child under 19. Phase-out starts at $36,309 of family income.
Couple, no children
Maximum $756 combined ($378 each). Phase-out starts at $36,309 of family income.
Couple with children
Maximum $756 for both adults plus $378 for each child under 19. Phase-out starts at $36,309.
Senior aged 65 or older
Same OSTC amounts. The Ontario Energy and Property Tax Credit portion of your OTB uses a separate, higher senior calculation.
Newcomer to Ontario in 2025
You may qualify if you were an Ontario resident on December 31, 2025. See the eligibility section below.

How much you can actually get: worked examples by household

Direct answer: The OSTC pays a maximum of $378 per adult and $378 per dependent child under 19 for the 2026-27 year. Once adjusted family net income passes the phase-out threshold ($29,047 for single filers with no children, $36,309 for families), the credit is reduced by 4 cents on every additional dollar of income until it reaches zero.

Below are four realistic Ontario households and the OSTC each would receive for the benefit year running July 2026 through June 2027.

  • ›Priya, single, no children, adjusted net income $25,000. Below the $29,047 threshold, so full maximum $378 per year, or $31.50 per month.
  • ›Marcus and Lisa, couple, no children, family income $34,000. Below the $36,309 threshold, so full couple maximum $756 per year, or $63 per month.
  • ›The Chen family, two adults and two children under 19, family income $45,000. Above the threshold by $8,691. Maximum $1,512, reduced by 4% of $8,691. Net OSTC roughly $1,164 per year, or $97 per month.
  • ›The Singh family, two adults and three children under 19, family income $60,000. Above the threshold by $23,691. Maximum $1,890, reduced by roughly $948. Net OSTC approximately $942 per year, or $79 per month.

Household size shifts the math quickly. Each additional qualifying child pushes back the income point at which your OSTC disappears entirely.

ClearWealth Accounting Advisors
Maximum OSTC by household composition (2026-27)
Full entitlement at $378 per eligible person, before phase-out
Per person
$378
Family of four
$1,512
Family of five
$1,890
Source: Government of Ontario · Canada Revenue Agency — Ontario Trillium Benefit program rules for the 2026-27 benefit year. ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.

Who qualifies for the Ontario Sales Tax Credit

Direct answer: You qualify for the OSTC if you were an Ontario resident on December 31, 2025 and either 19 or older, married or in a common-law relationship, or a parent living with your child. You must file a 2025 income tax return for the CRA to determine your entitlement. No separate application form is required.

The residency test is strict and often misunderstood. You must have been an Ontario resident on December 31, 2025 to receive OSTC payments for the 2026-27 benefit year. If you moved to Alberta in November 2025, you do not qualify, even if you spent ten months of the year in Toronto. The reverse also applies: if you moved to Ontario in October 2025 and still lived here on December 31, you generally qualify.

A few situational rules are worth flagging:

  • ›Students living in a designated university, college, or private school residence generally still qualify based on Ontario residency status.
  • ›Residents on a reserve or in a public or non-profit long-term care home qualify under standard rules.
  • ›Individuals under 19 with no spouse, common-law partner, or child do not qualify for the adult portion, though a parent can claim them as a dependent child.

The mechanics only work if you actually file. Filing your 2025 return on time is the single most important step for receiving the credit.

ClearWealth Accounting Advisors
OSTC phase-out for a family of four (2026-27)
Credit stays flat at $1,512 until $36,309, then drops 4 cents on the dollar to zero
Threshold
$36,309
Reduction rate
4%
Zero credit at
$74,109
Source: Benefits Wayfinder · Canada Revenue Agency — Ontario Sales Tax Credit calculation rules, 2026-27 benefit year. Illustrative for a household of two adults with two dependent children under 19. ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.

Step by step: how to make sure you receive the full $378

Follow this sequence to make sure your OSTC arrives correctly and on time.

  1. 1
    File your 2025 income tax return by April 30, 2026Even if you have no income to report, filing is what triggers the CRA to calculate your entitlement.
  2. 2
    Confirm your Ontario residency on the returnYour province of residence on December 31, 2025 must be Ontario. This flows automatically from the address section of your return.
  3. 3
    Report your correct marital statusIf you separated, divorced, married, or entered a common-law relationship in 2025, make sure your return reflects your status as of December 31. This changes which phase-out threshold applies.
  4. 4
    Verify direct deposit information with the CRALog into your CRA My Account and confirm your bank details. Direct deposit is faster and less likely to go astray than paper cheques.
  5. 5
    Watch for the July 10, 2026 depositThis is when the first payment of the new benefit year lands. Check that the amount roughly matches your expectation based on the worked examples above.
  6. 6
    Reconcile against your notice of determinationThe CRA sends a written notice showing how your OSTC and other OTB components were calculated. Compare it against your own math.
  7. 7
    Contact the CRA or a qualified accountant if the amount looks wrongSmall discrepancies often trace back to a stale marital status or address; larger ones may warrant a formal reassessment.

When payments arrive and what to do if yours does not

Direct answer: Ontario Trillium Benefit payments, including the OSTC portion, are issued on the 10th of each month starting July 10, 2026, running through June 10, 2027. If your total annual OTB entitlement is small, you may receive a single lump-sum payment in July instead of monthly deposits.

Deposits land on the 10th of each month from July 2026 through June 2027, adjusted for weekends and statutory holidays. The Government of Ontario has proposed raising the lump-sum threshold from $360 to $500 for the 2026-27 year. If enacted, more low-entitlement recipients would receive their full annual amount in one July deposit rather than 12 smaller payments. This change was proposed in the 2026 Ontario Budget and had not yet received Royal Assent as of publication.

If you filed your 2025 return after April 30, 2026, expect a delay. Under CRA processing rules, if your return is assessed after June 19, 2026, your first OTB payment (including any missed months’ entitlement) generally arrives four to eight weeks after your assessment is complete. For more on payment timing, see our guide on delays in your CRA payments.

Common mistakes that shrink or delay your OSTC

Even though the OSTC is automatic, several avoidable errors cost Ontario households money every year. Watch for these:

  • ›Not filing a 2025 income tax return. The OSTC is automatic only when a return is filed, even if income for the year was zero.
  • ›Forgetting to update marital status with the CRA after a separation, divorce, or new common-law relationship. This changes the phase-out threshold that applies to your file.
  • ›Assuming total income triggers the phase-out. The reduction is calculated on adjusted family net income, which is line 23600 minus several deductions, not gross income and not employment income alone.
  • ›Missing the April 30, 2026 filing deadline and losing months of monthly payments while the CRA reassesses the file.
  • ›Not updating a Canadian address or direct deposit information in CRA My Account after moving out of Ontario. You must be an Ontario resident on December 31, 2025 to qualify for the 2026-27 year.
  • ›Confusing the OSTC with the federal GST/HST credit. They are two separate payments with two separate income thresholds, administered under different rules.
  • ›Ignoring a CRA notice of determination that adjusts the payment amount. Disputing within 90 days protects your right to a reassessment.

Frequently asked questions

How much is the Ontario Sales Tax Credit in 2026?

For the 2026-27 benefit year, the OSTC maximum is $378 per adult and $378 per dependent child under 19. This is a $7 per person increase from the $371 maximum that applied in the 2025-26 year, reflecting the CRA’s 2% inflation indexation adjustment.

Do I have to apply for the Ontario Sales Tax Credit or is it automatic?

The OSTC is automatic. You do not need to submit a separate application. The Canada Revenue Agency calculates your entitlement using the information on your 2025 income tax return, including your Ontario residency, age, marital status, and number of dependent children.

At what income does the OSTC start to phase out?

The phase-out begins at $29,047 of adjusted net income for single filers with no children, and at $36,309 of adjusted family net income for single parents and couples. Above these thresholds, the credit is reduced by 4 cents on every additional dollar of income until it reaches zero.

When will I get my Ontario Trillium Benefit payment each month?

Payments arrive on the 10th of each month starting July 10, 2026, and continue through June 10, 2027. If the 10th falls on a weekend or statutory holiday, the CRA typically deposits the payment on the preceding business day.

Is the Ontario Sales Tax Credit the same as the federal GST/HST credit?

No. The OSTC is a provincial credit funded by Ontario. The federal GST/HST credit is a separate quarterly payment with its own thresholds and eligibility rules. Many Ontario households qualify for both, and the CRA delivers both payments.

What happens if I moved to Ontario partway through 2025?

Your eligibility depends on where you lived on December 31, 2025. If you were an Ontario resident on that date, you generally qualify for the full 2026-27 OSTC. If you moved out of Ontario before year-end, you do not qualify, even if you spent most of the year in the province.

Why did I get one big lump-sum payment instead of monthly deposits?

Under current rules, if your total annual OTB entitlement is $360 or less, the CRA issues it as a single lump-sum payment in July rather than spreading it across 12 months. The province has proposed raising this threshold to $500 for 2026-27; that change remains proposed and had not received Royal Assent as of publication.

Is the OSTC taxable? Do I have to report it on next year’s return?

No. The OSTC and the broader Ontario Trillium Benefit are tax-free payments. You do not report them as income on your next tax return, and they do not affect your taxable income calculation.

Get your Ontario benefits right the first time

Small credits add up. Between the OSTC, the OEPTC, and the federal GST/HST credit, an Ontario family can receive well over $2,000 in tax-free benefits each year. A professional review of your 2025 return can confirm you are claiming every credit you are entitled to. See our personal tax services or book a consultation with our team below.

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This article is for informational purposes only and does not constitute tax or financial advice. Consult a qualified accounting professional before making any tax or financial decisions.

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