Updated: April 2025  |  bremo.io financial guides

Retiring in Ontario — Guide for New Retirees 2025

Ontario is home to more than a third of Canada's population and offers retirees a wide range of environments — from world-class urban amenities in Toronto to peaceful small-town retirement in Prince Edward County, Muskoka, or the Niagara region. Here is a comprehensive financial guide to retiring in Ontario.

Ontario Provincial Senior Benefits

Guaranteed Annual Income System (GAINS)

Ontario's GAINS program provides a monthly top-up to very low-income seniors who already receive the federal OAS and GIS. The maximum GAINS payment is $87/month for single seniors and $174/month for couples. Eligibility is based on income and is assessed automatically when you file your taxes.

Ontario Drug Benefit (ODB)

The ODB program covers eligible prescription drug costs for seniors 65+. It has an annual deductible of approximately $100, above which Ontario covers 100% of the cost of covered medications. This is one of the most comprehensive provincial drug programs in Canada.

Ontario Senior Homeowners' Property Tax Grant

Ontario homeowners aged 64+ who paid property tax may qualify for up to a $500 annual grant to help cover property taxes. The grant phases out as income rises. Apply through your Ontario income tax return using Form ON-BEN.

Ontario Income Tax for Retirees

Ontario's 2025 provincial income tax rates start at 5.05% on the first $51,446 and rise to 9.15% for the next tranche. The provincial basic personal amount is $11,865. Ontario also has surtaxes that kick in for higher provincial tax. Pension income splitting applies at the provincial level as well, helping couples reduce combined Ontario tax.

Healthcare in Ontario

OHIP (Ontario Health Insurance Plan) covers medically necessary hospital and physician services. Ontario has invested significantly in long-term care and home care. The province funds approximately 78,000 long-term care beds. Wait times for publicly funded LTC beds can range from months to years in some regions — planning ahead is essential.

Cost of Living in Ontario by Region

• Toronto/GTA: Very high housing ($700K-$1M+), highest cost of living, world-class amenities
• Ottawa: High housing, federal government city, strong healthcare and services
• Hamilton/Niagara: Moderate costs, growing retirement communities, proximity to US border
• Kingston/Prince Edward County: Moderate costs, excellent quality of life, university-town amenities
• Sudbury/Sault Ste. Marie: Low costs, northern lifestyle, solid healthcare infrastructure

Retirement Communities in Ontario

Ontario has a thriving retirement community sector. Independent living communities, continuing care retirement communities (CCRCs), and life lease housing are all available throughout the province. Prices range from $2,500-$7,000+/month for independent living depending on services and location.

Property Tax and the Ontario Senior Credit

Property taxes in Ontario vary significantly by municipality. Toronto has relatively low property tax rates (around 0.6% of assessed value) while smaller municipalities can be significantly higher. The Ontario Senior Homeowners' Property Tax Grant helps, but the main protection is Ontario's Assessment Act which caps assessment increases.

Key Financial Steps for Ontario Retirees

• Enroll in ODB at age 65 to receive prescription drug coverage
• File taxes annually to maintain GAINS eligibility
• Apply for the Ontario Senior Homeowners' Property Tax Grant via tax return
• Review beneficiary designations on all registered accounts
• Consider a Power of Attorney for property and personal care