Calculate Income Tax Return Ontario 2015

Calculating your 2015 Ontario income tax return can be complex, but our step-by-step guide and online calculator make it simple. Whether you're an employee, self-employed, or have rental income, this tool will help you determine your tax liability accurately.

How to Calculate Your 2015 Ontario Income Tax Return

The process of calculating your Ontario income tax return for 2015 involves several key steps. First, you need to determine your total taxable income by subtracting eligible deductions from your gross income. Then, you apply the Ontario tax rates to calculate your provincial tax liability.

Note: This calculator uses the 2015 tax rates and brackets. For current year calculations, please use our updated Ontario income tax calculator.

Step 1: Calculate Gross Income

Your gross income includes all income you earned during the year, including wages, salaries, self-employment income, rental income, and investment income. Make sure to include all sources of income in your calculation.

Step 2: Subtract Eligible Deductions

Deductions reduce your taxable income, which can lower your tax liability. Common deductions include RRSP contributions, union dues, and medical expenses. Refer to the Canada Revenue Agency (CRA) guidelines for the complete list of eligible deductions.

Step 3: Apply Ontario Tax Rates

Once you have your taxable income, apply the Ontario tax rates to calculate your provincial tax. The Ontario government offers several tax credits and deductions that can further reduce your tax liability.

Formula: Ontario Tax = Taxable Income × Ontario Tax Rate

2015 Ontario Tax Brackets

The Ontario tax system uses progressive tax rates, meaning higher income earners pay a higher percentage of their income in taxes. Here are the 2015 Ontario tax brackets:

Taxable Income	Tax Rate
$0 - $40,922	20.05%
$40,922.01 - $81,847	24.18%
$81,847.01 - $90,000	26.42%
$90,000.01 - $150,000	29.65%
Over $150,000	33.50%

For example, if your taxable income is $50,000, you would pay 20.05% on the first $40,922 and 24.18% on the remaining $9,078, resulting in a total Ontario tax of approximately $12,320.

Common Deductions for 2015

Several deductions can reduce your taxable income and lower your tax liability. Here are some common deductions available in 2015:

RRSP Contributions: Contributions to a Registered Retirement Savings Plan (RRSP) are deductible, subject to income limits.
Union Dues: Dues paid to a trade union are fully deductible.
Medical Expenses: Medical expenses exceeding 3% of your net income are deductible.
Donations: Donations to registered charities are deductible.
Home Office: If you have a home office, you can deduct a portion of your home expenses.

Be sure to keep detailed records of your deductions to support your tax return.

Worked Example

Let's walk through a worked example to illustrate how the Ontario income tax calculator works. Suppose you have the following details for 2015:

Gross Income: $60,000
RRSP Contributions: $5,000
Medical Expenses: $2,000

Step 1: Calculate Taxable Income

Taxable Income = Gross Income - Deductions
Taxable Income = $60,000 - ($5,000 + $2,000) = $53,000

Step 2: Apply Ontario Tax Rates

Using the 2015 Ontario tax brackets:

$40,922 × 20.05% = $8,185
($53,000 - $40,922) × 24.18% = $2,875

Total Ontario Tax = $8,185 + $2,875 = $11,060

Result

Based on the example above, your estimated Ontario income tax for 2015 would be approximately $11,060.

Frequently Asked Questions

What is the difference between federal and provincial taxes in Ontario?

In Ontario, you pay both federal and provincial taxes. The federal government sets the basic tax rates, while the Ontario government sets its own rates. The total tax you pay is the sum of both federal and provincial taxes.

Can I deduct my RRSP contributions from my taxable income?

Yes, RRSP contributions are deductible from your taxable income, subject to income limits. The CRA provides specific guidelines on how much you can contribute.

What happens if I don't file my tax return on time?

If you don't file your tax return on time, you may face penalties and interest charges. It's important to file your return by the deadline to avoid these additional costs.

Are there any tax credits available for Ontario residents?

Yes, Ontario offers several tax credits, including the Ontario Trillium Benefit and the Ontario Child Benefit. These credits can significantly reduce your tax liability.