The 'Secret' 10th-of-the-Month Payment: How the Ontario Trillium Benefit Works

If you live in Ontario, the 10th of the month is a specific kind of payday. While the Child Benefit hits on the 20th and the Carbon Rebate arrives quarterly, the Ontario Trillium Benefit (OTB) is the quiet monthly deposit that millions of residents rely on.

But unlike the federal Carbon Rebate, which is a flat rate for everyone, the Trillium Benefit is calculated using a complex mix of your income, your family size, and—crucially—your housing costs.

If you don’t know how the math works, specifically regarding the “Rent & Property Tax” component, you might be missing out on over $1,000 a year.

Here is the breakdown of what is actually inside that deposit.

The Three Pillars of Trillium

The OTB is actually a “super-benefit” that combines three distinct tax credits into one single payment.

Ontario Sales Tax Credit (OSTC): Designed to offset the HST you pay on goods.
Ontario Energy and Property Tax Credit (OEPTC): Designed to help with rent, property tax, and home energy costs.
Northern Ontario Energy Credit (NOEC): Additional support for residents of Northern Ontario.

Component 1: The Sales Tax Credit (OSTC)

This is the “base” layer of the benefit. You get this simply for being a low-to-moderate-income resident. You do not need to pay rent or own a home to qualify.

The 2025 Math

Max Annual Credit: ~$ $371$ per adult and per child.
Clawback Threshold: ~$ $28,506$ (Single) or ~$ $35,632$ (Family).
Reduction Rate: $4\%$

If your income is below the threshold, you get the full amount. Once you cross that line, the government reduces your benefit by 4 cents for every dollar earned.

\text{OSTC Benefit} = (\text{\$371} \times \text{People}) - [(\text{Family Net Income} - \text{Threshold}) \times 0.04]

Component 2: The Energy & Property Tax Credit (OEPTC)

This is the component most people miss or misunderstand. It is not automatic—you must actively claim your rent or property tax paid on your tax return (Form ON-BEN) to get it.

It consists of an Energy Component (for sales tax on hydro/gas) and a Property Tax Component.

The 2025 Math (Non-Seniors)

Max Annual Benefit: Up to ~$ $1,283$ .
The Calculation: The government calculates 10% of your rent paid (or property tax paid) plus a base amount, up to the maximum.
Clawback Rate: $2\%$

This leads to a unique dynamic: You can have a high income but still qualify if your rent is high. Because the clawback rate is only 2% (lower than the OSTC’s 4%), this benefit extends much further up the income ladder.

Example: A single person earning $45,000 usually assumes they make “too much” for benefits. But if they pay $2,000/month in rent in Toronto, they likely still qualify for a portion of this credit because their high housing costs offset the income clawback.

The “Payment Trap”: Monthly vs. Lump Sum

The most confusing part of the Trillium Benefit is the delivery schedule. The government applies a strict rule based on your total annual entitlement:

Over $360/year: You receive monthly deposits on the 10th of each month.
$360 or less: You receive a single lump sum payment in July.

The “Choice” Option

Did you know you can opt out of monthly payments?

If you qualify for $500/year, you would normally get ~$ $41$ /month. Many people find this amount negligible and hard to budget with. On your tax return, you can tick a box to wait and receive the entire $500 as one lump sum in June of the following year. It acts like a forced savings plan.

Summary

The Ontario Trillium Benefit is more than just a sales tax rebate. It is a critical housing subsidy for renters and homeowners.

If you rent: Ensure you report your total rent paid on your tax return.
If you are a student: Ensure you report your residence fees (you get a flat $25 credit).
If you have a high income: Don’t assume you get $0. Use a calculator to check if your high rent qualifies you for a partial payment.

Use our Household Benefits Calculator to input your rent and income to see exactly how much OTB you should be expecting on the 10th.