Part D: Ontario’s Revenues
Ontario’s Revenues
Revenue is the money that Ontario
brings in from a variety of sources to pay
for its expenditures - public services,
programs and government operations.
Ontario’s projected revenues for the
2011-2012 fiscal year are $108 billion.
Where does it come from?
• Taxes
• Transfer Payments
• Non-Tax Revenue
• Government Enterprises
Taxes
Taxes are levies or fees individuals or
businesses are required to pay in order to
pay for public services and contribute to
the government in the province and
country in which they live or operate.
Taxes make up the majority of Ontario’s
total revenue.
Types of Taxes
In Ontario, three taxes bring in the largest
amount of revenue.
1. Personal
2. Corporate
3. Sales
Others include Employer Health tax,
gasoline and fuel taxes, and the Ontario
Health Premium.
Personal Income Tax
A percentage of the money you earn from
a job or investments must be remitted to
the government.
In Ontario, personal income tax ranges
from 20-40% based on the level of your
income. Between 5-10% goes to the
provincial government, the rest goes to the
federal government.
Corporate Tax
Businesses are also required to pay the
government a percentage of their profits.
In Ontario, the corporate tax rate ranges
from 15-23%, depending on the size of
your business. Between 4.5-11% goes to
the provincial government and the rest
goes to the federal government.
Sales Tax
Individuals and businesses are required to
pay a sales tax on the goods and services
they purchase.
The most common sales tax in Ontario is
the Harmonized Sales Tax (HST) which is
13%. This is also split among the provincial
(8%) and federal (5%) governments.
Federal Transfer Payments
Sums of money that are transferred from
the federal government to the provinces
and territories to pay for public services.
Transfer payments help Ontario cover the
costs of Health Care, Education and
Welfare.
Non-Tax Revenue
Non-Tax Revenue refers to money collected
by the Ontario government through fees
and penalties.
Some examples include: user fees for
provincial parks, vehicle licensing, permits
and speeding tickets.
Government Enterprises
Revenue also comes from businesses
(enterprises) that the Ontario government
owns and operates.
These include the Liquor Control Board of
Ontario (LCBO), Ontario Lottery and
Gaming Corporation (OLG), Hydro One and
Ontario Power Generation (OPG).
Discussion
What do you think is the breakdown
of revenue sources for the Ontario
government?
Which category brings in the most
revenue? Which brings in the least
amount of revenue?
Projected Revenues
2011-2012
% Breakdown
70% Taxes (24% Personal, 8% Corporations,
19% Sales, 19% Other taxes)
20% Transfer Payments
6% Non-Tax Revenue
4% Government Enterprises