Calculate Income Tax Ontario 2021

Use this Ontario income tax calculator to estimate your 2021 tax liability. The calculator applies Ontario's progressive tax rates and standard deductions to your income. For exact tax amounts, consult a tax professional or use official government tools.

How to Use This Calculator

Enter your total income for 2021 in the calculator below. The calculator will apply Ontario's tax rates and standard deductions to calculate your estimated tax liability. You can also adjust the number of dependents to see how it affects your tax.

For more accurate results, consider additional deductions like RRSP contributions, medical expenses, or home office expenses. These are not included in this basic calculator but may reduce your taxable income.

Ontario Tax Rates 2021

Ontario uses a progressive tax system with different rates for different income brackets. The 2021 tax rates are:

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%
$220,001+	13.16%

Ontario also has a basic personal amount (BPA) of $11,474 for 2021, which reduces your taxable income. The provincial sales tax (PST) rate is 8% for most goods and services.

How Ontario Income Tax Works

Taxable Income Calculation

Your taxable income is calculated by subtracting deductions from your total income. The basic formula is:

Taxable Income = Total Income - Basic Personal Amount - Other Deductions

The Basic Personal Amount (BPA) for 2021 is $11,474. Other deductions may include:

RRSP contributions
Medical expenses over 3% of income
Home office expenses
Donations to registered charities

Progressive Tax Calculation

Ontario uses a progressive tax system where higher income brackets are taxed at higher rates. The calculator applies the rates shown above to your taxable income.

For example, if your taxable income is $50,000:

$44,703 at 5.05% = $2,264.82
$5,297 at 9.15% = $485.37
Total tax = $2,264.82 + $485.37 = $2,750.19

Dependents and Tax Credits

Each dependent you claim can reduce your taxable income by $3,970 for 2021. This is called the Ontario Child Tax Credit.

Worked Examples

Example 1: Single Person, $50,000 Income

Taxable Income = $50,000 - $11,474 (BPA) = $38,526

Tax Calculation:

$44,703 at 5.05% = $2,264.82
$3,823 at 9.15% = $349.49
Total tax = $2,264.82 + $349.49 = $2,614.31

Example 2: Two Dependents, $80,000 Income

Taxable Income = $80,000 - $11,474 (BPA) - 2 × $3,970 (dependents) = $63,556

Tax Calculation:

$44,703 at 5.05% = $2,264.82
$44,704 at 9.15% = $4,050.09
Total tax = $2,264.82 + $4,050.09 = $6,314.91

Frequently Asked Questions

How accurate is this Ontario tax calculator?

This calculator provides an estimate based on 2021 tax rates and standard deductions. For exact tax amounts, consult a tax professional or use official government tools like the Canada Revenue Agency's NETFILE.

What deductions are included in this calculator?

The calculator includes the Basic Personal Amount (BPA) and Ontario Child Tax Credit for dependents. Additional deductions like RRSP contributions or medical expenses are not included but may reduce your taxable income.

How do I file my Ontario taxes?

You can file your Ontario taxes online through the Canada Revenue Agency's NETFILE, by mail, or with a tax professional. The deadline for 2021 taxes was April 30, 2022.

What is the Ontario Child Tax Credit?

The Ontario Child Tax Credit reduces your taxable income by $3,970 for each eligible dependent you claim. This credit is in addition to the federal Child Tax Benefit.