Income Tax Calculator 2020 Ontario

Use this income tax calculator to estimate your 2020 Ontario tax liability. The calculator accounts for both federal and provincial tax rates, common deductions, and available tax credits. For precise tax calculations, consult a tax professional or use official government tax software.

How to Use This Calculator

Enter your total taxable income for 2020 in the calculator. The calculator will automatically apply the 2020 Ontario tax rates, federal tax rates, and common deductions. You can also adjust for tax credits if applicable.

The result will show your estimated federal tax, provincial tax, total tax payable, and net income after tax. The calculator provides a breakdown of how much tax is paid at each tax bracket.

This calculator provides an estimate. Actual tax liability may vary based on your specific situation and changes in tax laws. Always consult a tax professional for precise calculations.

2020 Ontario Tax Rates

The 2020 Ontario tax rates are as follows:

5.05% on the first $44,709 of taxable income
9.15% on the next $44,709 ($44,710 to $89,419)
11.16% on the next $95,418 ($89,420 to $184,838)
12.16% on the next $100,000 ($184,839 to $284,839)
13.16% on amounts over $284,839

The federal tax rates for 2020 were:

15% on the first $48,535
20.5% on the next $48,535 ($48,536 to $97,069)
26% on the next $53,404 ($97,070 to $150,473)
29% on the next $63,895 ($150,474 to $214,369)
33% on amounts over $214,369

Provincial Tax = (Income × Provincial Rate) - Provincial Credit Federal Tax = (Income × Federal Rate) - Federal Credit Total Tax = Provincial Tax + Federal Tax Net Income = Income - Total Tax

Common Deductions

Common deductions that may reduce your taxable income include:

RRSP contributions (up to $27,360 in 2020)
TFSA contributions (up to $6,000 in 2020)
Union dues
Medical expenses (over 3% of income)
Donations to registered charities

These deductions are not included in the calculator. You must manually subtract them from your taxable income before entering it into the calculator.

Tax Credits

Tax credits directly reduce your tax liability. Common credits include:

Canada Child Benefit (CCB)
Ontario Child Benefit (OCB)
Provincial and federal tax credits for low-income individuals

You can enter these credits in the calculator to get a more accurate estimate of your tax liability.

Worked Example

Let's calculate the tax for a single individual with $80,000 taxable income in 2020.

Federal tax:
- $48,535 × 15% = $7,280.25
- ($80,000 - $48,535) × 20.5% = $6,916.70
- Total federal tax = $7,280.25 + $6,916.70 = $14,196.95
Provincial tax:
- $44,709 × 5.05% = $2,257.95
- ($80,000 - $44,709) × 9.15% = $2,936.00
- Total provincial tax = $2,257.95 + $2,936.00 = $5,193.95
Total tax = $14,196.95 + $5,193.95 = $19,390.90
Net income = $80,000 - $19,390.90 = $60,609.10

Using the calculator with $80,000 taxable income and no credits should give you similar results.

Frequently Asked Questions

Is this calculator accurate for my specific situation?: This calculator provides an estimate based on standard tax rates. For precise calculations, consult a tax professional or use official government tax software.
Do I need to enter my gross income or net income?: You should enter your taxable income after deductions. The calculator does not account for deductions automatically.
How do I account for tax credits in the calculator?: Enter the total amount of tax credits you expect to receive in the credits field. The calculator will subtract this from your total tax liability.
Are the tax rates the same for everyone in Ontario?: Yes, the tax rates are the same for all residents of Ontario. However, your taxable income may vary based on deductions and credits.
Can I use this calculator for 2021 or future years?: No, this calculator is specifically for 2020 tax rates. Tax rates change each year, so you would need a calculator for the specific year you're calculating.