2018 Ontario Tax Rate Calculator
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Reviewed by Calculator Editorial Team
Calculate your 2018 Ontario provincial tax liability using this official tax rate calculator. The calculator applies the 2018 tax brackets, deductions, and credits to determine your provincial tax amount.
How the 2018 Ontario Tax Calculator Works
The 2018 Ontario tax calculator applies the provincial tax rates to your taxable income. The calculation follows these steps:
- Enter your total income for the year
- Subtract any eligible deductions
- Apply the progressive tax brackets to the taxable income
- Add any applicable credits
- Calculate the final provincial tax amount
Formula
Ontario Provincial Tax = Σ (Taxable Income × Tax Rate for each bracket)
Where Σ represents the sum of each bracket's tax amount
The calculator uses the 2018 Ontario tax rates which were in effect for that year. For current tax calculations, you should use the most recent tax year rates.
2018 Ontario Tax Brackets
The 2018 Ontario tax rates were progressive, meaning higher income levels had higher tax rates. The brackets for 2018 were:
| Taxable Income | Tax Rate |
|---|---|
| $0 - $44,703 | 5.05% |
| $44,704 - $89,407 | 9.15% |
| $89,408 - $150,000 | 11.16% |
| $150,001 - $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Note: These rates are for 2018 only. Current tax rates may differ significantly.
Common Deductions and Credits
Several deductions and credits can reduce your taxable income or lower your tax bill. Common ones in 2018 included:
- Basic Personal Amount: $11,474
- Spouse or Common-Law Partner Amount: $11,474
- Eligible Dependents Amount: $4,612 per dependent
- Home Buyers' Plan: Up to $8,000
- RRSP Contribution Room: Up to $25,800
- TFSA Contribution Room: Up to $10,000
These amounts were adjusted for inflation from previous years. The calculator includes these standard amounts as assumptions.
Worked Example
Let's calculate the provincial tax for a single individual with $60,000 income in 2018:
- Total Income: $60,000
- Subtract Basic Personal Amount: $60,000 - $11,474 = $48,526
- Apply tax brackets:
- $44,703 × 5.05% = $2,262.15
- ($48,526 - $44,703) × 9.15% = $3,764.09
- Total Provincial Tax: $2,262.15 + $3,764.09 = $6,026.24
This example shows the progressive nature of the tax system - the first $44,703 is taxed at 5.05%, while the remaining amount is taxed at the higher 9.15% rate.
Frequently Asked Questions
What is the difference between federal and provincial taxes in Ontario?
In Ontario, you pay both federal and provincial taxes. The provincial tax is calculated using the rates shown in this calculator, while federal tax uses different brackets. Your total tax bill is the sum of both federal and provincial taxes.
Are the 2018 tax rates still valid today?
No, tax rates change each year. This calculator specifically uses the 2018 rates. For current tax calculations, you should use the most recent tax year rates.
How do deductions affect my taxable income?
Deductions reduce your taxable income, which lowers your overall tax liability. Common deductions include the Basic Personal Amount, spouse amount, and eligible dependents amount.
What are the progressive tax brackets?
Progressive tax brackets mean higher income levels are taxed at higher rates. In 2018, the first $44,703 was taxed at 5.05%, while amounts above that were taxed at higher rates.