Ontario Film Tax Credit

How Does Ontario's Film Tax Incentive Work?

Ontario is Canada's second-largest production hub, anchored by Toronto's extensive studio infrastructure. The province operates a three-tier tax credit system through Ontario Creates that serves Canadian productions, foreign service productions, and VFX/animation work.

Credit Programs

Ontario Film and Television Tax Credit (OFTTC)

The OFTTC provides a 35% refundable tax credit on eligible Ontario labour expenditure for Canadian-controlled productions. First-time producers receive an enhanced rate of 40% on the first $240,000 of qualifying Ontario labour. A regional bonus of 10% is available for productions filmed entirely outside the Greater Toronto Area (GTA).

Ontario Production Services Tax Credit (OPSTC)

The OPSTC is calculated at 21.5% of all qualifying Ontario production expenditures, including labour, service contracts, and tangible property. This broader expenditure base (not just labour) makes the OPSTC particularly valuable for productions with significant non-labour costs. This is the credit most used by US studios filming in Toronto.

Ontario Computer Animation and Special Effects Tax Credit (OCASE)

The OCASE provides an 18% refundable tax credit on eligible Ontario labour expenditure for digital animation and visual effects work. This credit can be claimed in addition to either the OFTTC or OPSTC, providing extra value for VFX-heavy productions.

Combined Credit Value

Ontario's three-tier system combined with federal credits creates one of North America's most competitive incentive structures:

• Canadian productions: 35% OFTTC + 25% federal CPTC + 18% OCASE on VFX
• Foreign service productions: 21.5% OPSTC + 16% federal PSTC + 18% OCASE on VFX

Why Productions Choose Ontario

Toronto studios. Major facilities include Pinewood Toronto Studios, CBS Stages Canada, Cinespace Film Studios, and Revival Studios.

Diverse urban locations. Toronto regularly doubles for New York, Chicago, and other US cities. The surrounding region provides suburban, rural, and small-town locations.

Post-production cluster. Toronto has a strong concentration of post-production and VFX houses, supporting the OCASE credit.

How Do You Manage Ontario Production Costs?

With three separate credits plus federal stacking, Ontario productions need careful cost tracking by category. Budgeting software that separates Ontario labour, Ontario all-spend, and VFX labour ensures producers claim every available credit.

Ontario Film Tax Credit: Key Facts

• OFTTC rate: 35% on Ontario labour (Canadian productions)
• OPSTC rate: 21.5% on all Ontario production expenditure (service productions)
• OCASE rate: 18% on Ontario VFX/animation labour
• Federal stacking: Yes, +16% PSTC or +25% CPTC
• Regional bonus: 10% for filming outside GTA (OFTTC only)
• First-time producer bonus: 40% on first $240K labour (OFTTC)
• Official resource: Ontario Creates