In 2026 the Ontario Trillium benefit (OTB) combines three provincial credits of the Ontario energy and property tax credit, the Northern Ontario energy credit, and the Ontario sales tax credit. OTB entitlement is income-tested and based on household circumstances, and any amount you qualify for is typically paid in monthly instalments over the year.

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Who qualifies for the Ontario Trillium Benefit at a $42,000 Income

At a $42,000 annual income, many single renters and moderate-income households may still fall within the range where at least one OTB component applies.

However, eligibility is determined using adjusted family net income (AFNI) from your prior-year tax return. This means:

• Spousal income is included.
• Certain deductions reduce your AFNI.
• Rent or property taxes paid affect the OEPTC portion.
• Northern residency affects the NOEC portion.

Because OTB calculations are household-based, eligibility cannot be determined by salary alone.

How household income affects your OTB amount

The Ontario Trillium Benefit phases out gradually as adjusted family net income rises.

Each component credit has its own reduction formula, meaning:

• There is no single income cutoff.
• Benefits decrease in stages.
• Entitlement may reduce to zero at higher income levels.

At $42,000 of individual income, eligibility depends heavily on whether income is combined with a spouse or partner and whether housing costs are eligible under the OEPTC.

When and how OTB payments are issued

The Ontario Trillium Benefit (OTB) is typically paid in monthly instalments, with your annual entitlement divided across the benefit year. Payments are usually issued on the 10th of each month.

For the 2026 OTB benefit year, payments are based on your 2025 income tax and benefit return and are issued monthly from July 2026 through June 2027.

If the 10th falls on a weekend or statutory holiday, the payment is issued on the last business day before the 10th.

Lump-sum payment options

In some cases, OTB payments are issued as a lump sum rather than monthly:

• If you chose a lump-sum payment on your 2025 tax return and your annual OTB entitlement is more than $360, the full amount is paid at the end of the benefit year (June 2027).
• If your total 2026 OTB entitlement is $360 or less, it is usually paid as a single lump-sum payment in the first payment month (typically July).

How to claim Ontario Trillium Benefit?

You don’t apply for the Ontario Trillium Benefit (OTB) through a separate form. The OTB is claimed automatically when you file your Ontario income tax and benefit return and complete the ON‑BEN application that’s included in your tax package. Once your return is assessed, the CRA calculates your OTB entitlement and issues payments on your behalf.

If you already receive your tax refund or other government benefits by direct deposit, your OTB payments will also be deposited directly into your bank account. If you’re not enrolled in direct deposit, your OTB payments will be issued by cheque.

Payments are issued by direct deposit if you are enrolled. Otherwise, they are sent by cheque. Direct deposit is a fast, secure, and reliable way to receive your payments on time, even during emergencies or service disruptions. Registering now helps avoid delays.