Income Tax Calculator Ontario Canada 2020
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Reviewed by Calculator Editorial Team
Use this Ontario income tax calculator to estimate your 2020 tax liability. The calculator uses the official 2020 tax brackets and rates for Ontario residents. Enter your taxable income and deductions to get your estimated tax amount.
How to Use This Calculator
To calculate your Ontario income tax for 2020:
- Enter your total taxable income in the first field.
- Enter any deductions you qualify for in the second field.
- Click the "Calculate" button to see your estimated tax.
- Review the breakdown of your tax calculation.
The calculator uses the official 2020 Ontario tax rates and brackets. For the most accurate results, consult with a tax professional or use the official Canada Revenue Agency (CRA) tax forms.
Ontario Tax Rates 2020
Ontario uses a progressive tax system with different tax rates for different income levels. The 2020 tax rates are as follows:
| Taxable Income | Tax Rate |
|---|---|
| $0 - $44,701 | 5.05% |
| $44,702 - $89,404 | 9.15% |
| $89,405 - $150,000 | 11.16% |
| $150,001 - $220,000 | 12.16% |
| Over $220,000 | 13.16% |
These rates apply to Ontario residents. Federal tax rates are different and are not included in this calculator.
How Ontario Income Tax Is Calculated
Ontario income tax is calculated using a progressive tax system. The taxable income is divided into brackets, and each bracket is taxed at a different rate. The formula for calculating Ontario income tax is:
Ontario Income Tax Formula
Tax = (Income × Rate) - Deductions
Where Rate is determined by the tax bracket.
The taxable income is calculated by subtracting deductions from your total income. The tax is then calculated by applying the appropriate tax rate to each bracket of income.
Example Calculation
Let's calculate the Ontario income tax for someone with $60,000 in taxable income and $5,000 in deductions.
- Subtract deductions from income: $60,000 - $5,000 = $55,000 taxable income.
- Determine the tax bracket: $55,000 falls in the $44,702 - $89,404 bracket.
- Calculate the tax: ($44,701 × 5.05%) + (($55,000 - $44,701) × 9.15%) = $2,242.05 + $927.95 = $3,170.00
The estimated Ontario income tax for this example is $3,170.00.
Frequently Asked Questions
What is the Ontario tax rate for 2020?
The Ontario tax rates for 2020 range from 5.05% to 13.16%, depending on your income level.
How do I calculate my Ontario income tax?
Use the Ontario income tax formula: Tax = (Income × Rate) - Deductions. The rate depends on your taxable income.
What deductions can I claim for Ontario income tax?
Common deductions include RRSP contributions, medical expenses, and charitable donations. Consult the CRA for a complete list.
Is this calculator accurate for my 2020 tax return?
This calculator provides an estimate. For an exact calculation, use the official CRA tax forms and consult a tax professional.