Ontario Income Tax Calculator
Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Results
Income Before Tax
Take Home Pay
Total Tax
Average Tax Rate
$ = Canadian Dollar
Income Before Tax
Federal Income Tax
Federal Non-Refundable Tax Credits
Quebec Federal Tax Abatement
Provincial Income Tax
Provincial Non-Refundable Tax Credits
Provincial Surtax
Provincial Non-Refundable "Tax Reduction"
Canada Pension Plan (CPP)
Employment Insurance (EI)
Quebec Pension Plan (QPP)
Quebec Parental Insurance Plan (QPIP)
Quebec Health Services Fund
Ontario Health Premium
Total Tax
Take Home Pay
Total Deductions
Average Tax Rate
Table of Contents
Summary
Enter your employment income into the income tax calculator above to estimate how taxes in Ontario, Canada may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
To learn more about Ontario, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Frequently Asked Questions
What is the income tax rate in Ontario?
The provincial income tax rate in Ontario is progressive and ranges from 5.05% to 13.16% while federal income tax rates range from 15% to 33% depending on your income. This income tax calculator can help estimate your average income tax rate and your take home pay.
How many income tax brackets are there in Ontario?
The provincial income tax system in Ontario has five different tax brackets. For more details, check out our detail section.
How to Calculate Ontario Net Income
As Canada's most populous province and home to some of the country's largest cities, Ontario has always been a hub of activity and opportunity. With its diverse landscape ranging from bustling urban centers to picturesque rural communities, Ontario offers something for everyone. From historic sites and cultural landmarks to renowned universities and innovative businesses, this vibrant province never ceases to amaze.
Beyond the bustling economy lies one thing that ties everything together – taxes. While not as glamorous as other aspects of life in Ontario, paying income tax is a crucial part of living here. Let's explore the basics of Ontario income tax, how it is calculated, and how it affects your personal finances.
To start off, your net income is typically just your gross income minus various income taxes.
The provincial income tax system in Ontario is a progressive tax system, which means that the more income you earn, the higher the tax rate you pay. The tax rates start from 5.05% for the lowest income bracket and go up to 13.16% for the highest income bracket. Your income is split into multiple brackets and each bracket is taxed at a different rate. It's a nuanced approach to taxation that ensures a fair distribution of the tax burden.
Ontario Income Tax Brackets
For 2023 tax year
| Taxable Income (CAD) | Tax Rate |
|---|---|
| First 49,231 | 5.05% |
| From 49,231 to 98,463 | 9.15% |
| From 98,463 to 150,000 | 11.16% |
| From 150,000 to 220,000 | 12.16% |
| From 220,000 onwards | 13.16% |
When it comes to reducing your taxable income, Ontario does not offer many tax deductions that you can claim. Tax deductions are items that you can subtract from your income before calculating your tax. Instead, Ontario uses a system of tax credits that can directly lower your tax.
However, there are some important things to know about tax credits in Ontario.
First, most of them are non-refundable, which means that they can only reduce your income tax to zero, but not below zero. If your income tax is already zero or lower than your total tax credits, you will not get any money back from the government.
Second, most of them are expressed in dollar "amounts", but they are not directly subtracted from your income tax. Instead, they are multiplied by the lowest tax rate and then subtracted from your income tax. This means that they act like deductions for the lowest bracket of income, but not for the higher brackets.
One of the most common tax credits in Ontario is the basic personal amount, which is a non-refundable amount that every resident can easily claim. For 2023, the basic personal amount in Ontario is $11,865. This means that you can multiply this amount by 5.05% and subtract it from your income tax.
In addition, Ontario also offers a special “tax reduction” credit amount that lowers the provincial tax for low income residents.
Another thing to be aware of is the surtax that Ontario imposes on some taxpayers. The surtax is a percentage of your net provincial tax (after subtracting non-refundable credits) that ranges from 0% to 36%.
In addition to the provincial related income taxes that you pay to Ontario, you also have to pay federal income tax to the Canadian government. This is another tax that is based on your income and has a similar structure to the Ontario tax. You can find more information about this in a separate section below that is devoted to this topic.
Social Security
Apart from the standard income tax, it is worth noting that social security taxes also form part of your financial obligations.
Most of Canada has two social security programs: the Canada Pension Plan (CPP) and Employment Insurance (EI). You contribute 5.95% of your income to the CPP and 1.63% to the EI. Note, there are maximum limits on how much income is subject to these contributions.
You can also claim tax credits that reduce the impact of social security taxes, up to certain amounts. These credits are available at both the provincial and federal levels.
Health Insurance
Health insurance contributions range from $0 to $900 depending on your income. These help fund the Ontario Health Insurance Plan (OHIP) which is the government run health insurance plan for Ontario. Under this plan, every Ontario resident with their primary home in Ontario is entitled to access emergency and preventive care free of charge.
More From Investomatica:
For sales tax, please visit our Ontario Sales Tax Rates and Calculator page.
Calculate Your Income Tax in Other Provinces and Territories
Calculate Your Income Tax in Other Parts of North America
Disclaimer
- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- Tax situations vary widely and calculations can get very complex. This income tax calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our income tax calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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