Income Tax Calculator Canada Ontario 2017
'/%3E%3Ccircle cx='48' cy='39' r='19' fill='%23f2c9a5'/%3E%3Cpath d='M27 35c3-16 39-17 42 2-8-8-27-9-42-2z' fill='%23374151'/%3E%3Cpath d='M21 86c5-24 49-28 56 0z' fill='%232563eb'/%3E%3Ccircle cx='41' cy='41' r='2' fill='%23111827'/%3E%3Ccircle cx='55' cy='41' r='2' fill='%23111827'/%3E%3Cpath d='M42 52c4 3 9 3 13 0' stroke='%2392400e' stroke-width='3' fill='none' stroke-linecap='round'/%3E%3C/svg%3E)
Reviewed by Calculator Editorial Team
Use this Ontario 2017 income tax calculator to determine your federal and provincial tax obligations. The calculator provides an estimate of your taxable income, federal tax, provincial tax, and total tax owed based on your gross income and deductions.
How to Use This Calculator
Enter your gross income and any applicable deductions in the calculator panel on the right. The calculator will automatically compute your taxable income and the corresponding federal and provincial taxes for Ontario in 2017.
For a more accurate result, consider consulting with a tax professional, as this calculator provides an estimate based on the tax rates and brackets in effect for 2017.
How Ontario Income Tax Works in 2017
In Ontario, income tax is calculated using a progressive tax system. This means that different portions of your income are taxed at different rates. The taxable income is calculated by subtracting eligible deductions from your gross income.
The federal government and the province of Ontario each have their own tax rates. The total tax owed is the sum of the federal tax and the provincial tax.
Tax Calculation Formula
Taxable Income = Gross Income - Deductions
Federal Tax = Taxable Income × Federal Tax Rate
Provincial Tax = Taxable Income × Provincial Tax Rate
Total Tax Owed = Federal Tax + Provincial Tax
In 2017, the federal tax rates ranged from 15% to 33%, while the Ontario provincial tax rates ranged from 5.05% to 13.16%. The exact tax rates depend on your taxable income.
Ontario Tax Brackets for 2017
The Ontario tax brackets for 2017 are as follows:
| Taxable Income | Federal Tax Rate | Ontario Tax Rate |
|---|---|---|
| $0 - $45,282 | 15% | 5.05% |
| $45,282 - $90,563 | 20.5% | 9.15% |
| $90,563 - $140,388 | 26% | 11.16% |
| $140,388 - $200,000 | 29% | 12.16% |
| Over $200,000 | 33% | 13.16% |
Note that these rates are approximate and may vary slightly depending on your specific circumstances. For precise tax calculations, consult with a tax professional or refer to the Canada Revenue Agency's official guidelines.
Worked Example
Let's calculate the income tax for a person with a gross income of $80,000 and no deductions.
- Taxable Income = $80,000 - $0 = $80,000
- Federal Tax = $80,000 × 20.5% = $16,400
- Provincial Tax = $80,000 × 9.15% = $7,320
- Total Tax Owed = $16,400 + $7,320 = $23,720
This example shows that the person would owe approximately $23,720 in total income tax for the year.
Frequently Asked Questions
- What is the difference between gross income and taxable income?
- Gross income is your total earnings before any deductions, while taxable income is your gross income minus eligible deductions.
- How are federal and provincial taxes calculated?
- Federal and provincial taxes are calculated based on your taxable income and the applicable tax rates for each level of income.
- Are there any deductions that can reduce my taxable income?
- Yes, there are various deductions available, such as RRSP contributions, medical expenses, and charitable donations, that can reduce your taxable income.
- Is this calculator accurate for all types of income?
- This calculator provides an estimate based on the standard tax rates and brackets. For more complex income situations, consult with a tax professional.
- When were these tax rates effective?
- The tax rates used in this calculator are based on the Ontario tax rates for the year 2017.