Is there a tax credit for being over 65 in Ontario?

Yes. Both the federal Income Tax Act and Ontario's provincial tax law provide an age amount — a non-refundable credit available to taxpayers who are 65 or older at the end of the tax year. The federal age amount is a set dollar figure (indexed annually) that you multiply by the lowest federal tax rate to arrive at the credit. Ontario has a parallel provincial age amount on Form ON428.

Both amounts phase out as your net income rises above a threshold. If your income exceeds the full phase-out ceiling, neither the federal nor the Ontario age amount is available to you. At moderate income levels the credit provides meaningful tax reduction.

If you have a spouse or common-law partner who cannot use part or all of their age amount, the unused portion can be transferred to you on Schedule 2. Similarly, if the older spouse has very low income, combining the spousal amount with the age amount transfer may be the most efficient approach.

Check the current year's Line 30100 instructions for the federal amount and Form ON428 for the Ontario amount — both are indexed annually.