Ontario workers earning less that $30,000 will no longer have to pay provincial income tax starting next year, and those earning up to $38,000 will pay less tax, The Canadian Press has learned.
Government sources say the plan will be laid out in the province's fall economic statement, slated to be tabled in the legislature this afternoon.
The sources say the tax changes will apply to 1.1 million Ontario workers making minimum wage or slightly above it, noting some other low-income workers who currently use a combination of rebates and other measures are already spared provincial income tax.
They say those who will be newly exempt are expected to save roughly $850 per year, or $1,250 per year for households with two exempt workers.
The sources say the plan will cost the province about $120 million between Jan. 1 and the end of the fiscal year. No further projections are included in the fiscal update, they say.
Premier Doug Ford had promised to eliminate provincial income tax for low-income workers in exchange for scrapping a minimum wage hike planned by the previous Liberal government that was set to take effect next year.
