Income Tax Calculator in Ontario 2018
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Reviewed by Calculator Editorial Team
Calculate your 2018 Ontario income tax with this professional tax calculator. This tool includes federal and provincial tax rates, common deductions, and tax credits to give you an accurate estimate of your tax liability.
How to Use This Calculator
Enter your total taxable income for 2018 in the calculator below. The calculator will automatically compute your federal and provincial tax amounts based on the 2018 tax brackets. You can also adjust for common deductions and tax credits.
This calculator provides an estimate only. For exact tax calculations, consult a tax professional or use official government tax forms.
Ontario Tax Rates 2018
In 2018, Ontario had a progressive income tax system with different rates for different income brackets. The federal government also applied its own tax rates on top of the provincial rates.
The combined tax rate can be as high as 47.16% for the highest income brackets.
How Ontario Income Tax Works
The Ontario income tax system is progressive, meaning higher income earners pay higher tax rates. The tax is calculated by applying the appropriate tax rate to each portion of your income that falls into a specific bracket.
Tax Calculation Process
- Determine your total taxable income for the year
- Apply the Ontario tax rates to each income bracket
- Apply the federal tax rates to the same income brackets
- Sum the provincial and federal tax amounts to get your total tax liability
Common Deductions and Credits
You can reduce your taxable income through deductions and claim tax credits that directly reduce your tax bill. Common deductions include:
- RRSP contributions
- Medical expenses
- Donations to registered charities
- Home office expenses
Tax credits are dollar-for-dollar reductions in your tax liability. Common credits include:
- Canada Child Benefit
- Canada Pension Plan contributions
- Employment Insurance premiums
Worked Example
Let's calculate the income tax for someone earning $100,000 in 2018.
| Income Bracket | Ontario Rate | Federal Rate | Taxable Income | Ontario Tax | Federal Tax | Total Tax |
|---|---|---|---|---|---|---|
| $0 - $44,700 | 5.05% | 15% | $44,700 | $2,258.35 | $6,705.00 | $8,963.35 |
| $44,701 - $89,400 | 9.15% | 20.5% | $44,700 | $4,061.65 | $9,187.50 | $13,249.15 |
| $89,401 - $144,699 | 11.16% | 26% | $10,600 | $1,183.66 | $2,756.00 | $3,939.66 |
| Total | $100,000 | $7,503.66 | $18,648.50 | $26,152.16 |
This example shows that someone earning $100,000 would owe approximately $26,152.16 in combined federal and provincial income taxes for 2018.
Frequently Asked Questions
- How accurate is this calculator?
- This calculator provides an estimate based on the 2018 tax brackets. For exact calculations, use official government tax forms or consult a tax professional.
- Does this calculator include all deductions and credits?
- The calculator includes common deductions and credits, but you may have additional ones depending on your personal situation.
- When should I file my Ontario taxes?
- In 2018, the deadline for filing federal and provincial taxes was April 30, 2019.
- What if my income changes during the year?
- Income tax is calculated on your total annual income, regardless of when you earned it.
- Can I pay my taxes in installments?
- Yes, you can pay your taxes in installments through the Canada Revenue Agency's payment plan program.