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Cerb Tax Calculator Ontario

Reviewed by Calculator Editorial Team

When you receive Canada Emergency Response Benefit (CERB) in Ontario, you may need to pay taxes on that income. This calculator helps you estimate how much tax you'll owe on your CERB benefits.

How CERB Tax Works in Ontario

The Canada Revenue Agency (CRA) taxes CERB as employment income. This means you'll need to report your CERB payments on your tax return and pay income tax on them. The amount you owe depends on your total income for the year and your tax bracket.

Important: CERB is not considered employment income for the purpose of the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP). You also won't pay employment insurance premiums on CERB.

In Ontario, CERB is taxed at the same rates as regular employment income. The federal government taxes CERB at a flat 15% rate, while the provincial government taxes it according to your Ontario tax bracket.

CERB Tax Rates in Ontario

The tax rates for CERB in Ontario are determined by your total income for the year. Here are the current tax brackets for Ontario residents:

Income Range Ontario 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%

The federal tax rate on CERB is a flat 15%. The total tax you'll pay is the sum of the federal and provincial taxes.

How to Calculate CERB Tax

To calculate how much tax you'll owe on your CERB, follow these steps:

  1. Determine your total income for the year, including your CERB payments.
  2. Identify your Ontario tax bracket based on your total income.
  3. Calculate the provincial tax on your CERB using your Ontario tax rate.
  4. Calculate the federal tax on your CERB at 15%.
  5. Add the provincial and federal taxes to get your total tax on CERB.

Formula: CERB Tax = (CERB Amount × Ontario Tax Rate) + (CERB Amount × 15%)

Use our calculator on the right to estimate your CERB tax based on your income and CERB amount.

Example Calculation

Let's say you received $1,500 in CERB and your total income for the year is $50,000. Here's how to calculate your CERB tax:

  1. Your total income is $50,000, which falls in the $45,142.01 - $90,287 bracket.
  2. Your Ontario tax rate is 9.15%.
  3. Provincial tax on CERB: $1,500 × 9.15% = $137.25
  4. Federal tax on CERB: $1,500 × 15% = $225.00
  5. Total tax on CERB: $137.25 + $225.00 = $362.25

In this example, you would owe $362.25 in taxes on your $1,500 CERB payment.

Frequently Asked Questions

Do I have to pay taxes on CERB?
Yes, CERB is considered employment income for tax purposes, so you'll need to report it on your tax return and pay income tax on it.
How is CERB taxed in Ontario?
CERB is taxed at the same rates as regular employment income. The federal government taxes it at 15%, while the provincial government taxes it according to your Ontario tax bracket.
Do I need to pay CPP or EI on CERB?
No, CERB is not considered employment income for the purpose of the Canada Pension Plan (CPP) or employment insurance premiums.
When do I need to report CERB on my tax return?
You should report your CERB payments on your tax return for the year you received them, along with your other income.