Bonus Tax Calculator 2017 Ontario
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Reviewed by Calculator Editorial Team
Calculate your Ontario bonus tax for 2017 using this free online calculator. Understand how bonuses are taxed in Ontario and get accurate results based on your specific situation.
How the Bonus Tax Calculator Works
In Ontario, bonuses are subject to income tax. The tax rate depends on your total taxable income for the year. This calculator helps you determine how much tax you'll owe on your bonus payment for 2017.
Important Note
This calculator uses the 2017 Ontario tax rates. Tax laws change frequently, so always verify your results with official government sources or a tax professional.
Key Considerations
- Bonuses are taxed as ordinary income
- Tax rates vary based on your total taxable income
- Ontario has progressive tax brackets
- Federal tax rates also apply to bonuses
Tax Brackets for 2017
| Income Range | Ontario Tax Rate | Federal Tax Rate |
|---|---|---|
| $0 - $43,906 | 5.05% | 15% |
| $43,907 - $87,813 | 9.15% | 20.5% |
| $87,814 - $150,000 | 11.16% | 26% |
| $150,001 - $220,000 | 12.16% | 29% |
| $220,001+ | 13.16% | 33% |
Bonus Tax Formula
Formula Used
Bonus Tax = (Bonus Amount × Ontario Tax Rate) + (Bonus Amount × Federal Tax Rate)
Where:
- Bonus Amount = Your bonus payment amount
- Ontario Tax Rate = Based on your total taxable income
- Federal Tax Rate = Based on your total taxable income
The calculator automatically applies the correct tax rates based on your total taxable income. For more complex situations, you may need to consult a tax professional.
Worked Example
Let's calculate the tax on a $5,000 bonus for someone with $80,000 total taxable income in 2017.
- Determine the applicable tax rates:
- Ontario rate: 11.16%
- Federal rate: 26%
- Calculate Ontario tax: $5,000 × 11.16% = $558
- Calculate federal tax: $5,000 × 26% = $1,300
- Total bonus tax: $558 + $1,300 = $1,858
This means the employee would receive $3,142 after tax from their $5,000 bonus.
FAQ
- How is a bonus taxed in Ontario?
- Bonuses are taxed as ordinary income in Ontario, using the same tax brackets as your regular income.
- Do I need to pay tax on every bonus I receive?
- Yes, all bonuses are subject to income tax in Ontario. The tax rate depends on your total taxable income for the year.
- Are there any exemptions for bonuses?
- There are no general exemptions for bonuses. However, some bonuses may qualify for special tax treatment if they meet specific criteria.
- How do I report bonus tax to the CRA?
- You should report bonuses on your annual tax return. The CRA will calculate the tax based on your total income for the year.
- Can I deduct bonus expenses?
- No, bonus payments are not deductible business expenses. They are considered taxable income to the recipient.