2021 Ontario Tax Calculator
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Reviewed by Calculator Editorial Team
Use this 2021 Ontario tax calculator to determine your provincial tax liability based on your taxable income. The calculator follows the 2021 Ontario tax rates and brackets, providing an estimate of your provincial tax payable.
How to Use This Calculator
To calculate your 2021 Ontario tax liability:
- Enter your total taxable income for the year in the "Taxable Income" field.
- Select your filing status from the dropdown menu (Single, Married, or Other).
- Click the "Calculate" button to see your estimated provincial tax payable.
The calculator will display your estimated provincial tax based on the 2021 Ontario tax rates. For a more precise calculation, consult with a tax professional or use official government tax forms.
2021 Ontario Tax Brackets
The 2021 Ontario tax rates and brackets are as follows:
| Taxable Income | Tax Rate |
|---|---|
| $0 - $45,142 | 5.05% |
| $45,142.01 - $90,287 | 9.15% |
| $90,287.01 - $150,000 | 11.16% |
| $150,000.01 - $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Note: These rates are for provincial tax only. Federal tax is calculated separately.
How Ontario Tax Calculation Works
The Ontario tax calculation is progressive, meaning your tax rate increases as your income increases. The calculator applies the appropriate tax rate based on your taxable income and filing status.
Tax Calculation Formula
Ontario tax is calculated as follows:
- Determine your taxable income after deductions.
- Apply the progressive tax rates to your taxable income.
- Sum the tax amounts from each bracket.
The calculator uses the official 2021 Ontario tax brackets and rates to provide an accurate estimate of your provincial tax liability.
Worked Example
Let's calculate the provincial tax for a single filer with a taxable income of $60,000.
- First $45,142 at 5.05%: $45,142 × 0.0505 = $2,274.33
- Next $14,858 ($60,000 - $45,142) at 9.15%: $14,858 × 0.0915 = $1,362.45
- Total provincial tax: $2,274.33 + $1,362.45 = $3,636.78
Using the calculator, you would enter $60,000 as the taxable income and select "Single" as the filing status to get this result.
Frequently Asked Questions
What is the difference between federal and provincial tax?
Federal tax is calculated based on your total income and follows the federal tax brackets. Provincial tax is calculated based on your provincial taxable income and follows the provincial tax brackets. The total tax you pay is the sum of federal and provincial taxes.
How do I calculate my taxable income?
Your taxable income is your total income minus eligible deductions, such as RRSP contributions, medical expenses, and union dues. Consult the Canada Revenue Agency (CRA) or Ontario Ministry of Finance for specific deductions.
Is this calculator accurate for my situation?
This calculator provides an estimate based on the 2021 Ontario tax rates. For a precise calculation, consult with a tax professional or use official government tax forms.
What if my income changes during the year?
If your income changes during the year, you may need to adjust your withholding or make estimated payments to avoid underpayment penalties. Consult with a tax professional for guidance.