Income Tax Ontario 2014 Calculator

Use this calculator to estimate your 2014 Ontario income tax liability. Enter your total income, deductions, and credits to calculate your estimated tax payable. This tool uses the 2014 Ontario tax rates and formulas.

How to Use This Calculator

To use this calculator:

Enter your total taxable income for 2014 in the "Taxable Income" field.
Select your filing status (Single, Married, or Other).
Enter any applicable deductions in the "Deductions" field.
Enter any tax credits in the "Tax Credits" field.
Click "Calculate" to see your estimated tax payable.
Review the breakdown of your tax calculation.

The calculator will show you your estimated tax payable, the tax rate applied, and the amount of tax after credits. You can also view a breakdown of how your tax was calculated.

How Ontario Income Tax Works in 2014

Ontario income tax is calculated using a progressive tax system. This means that different portions of your income are taxed at different rates. The tax is calculated by applying the tax rates to your taxable income, then subtracting any applicable deductions and credits.

The basic formula for calculating Ontario income tax in 2014 is:

Tax Payable = (Taxable Income × Tax Rate) - Deductions + Tax Credits

Where:

Taxable Income = Total Income - Deductions
Tax Rate is determined by your tax bracket
Deductions reduce your taxable income
Tax Credits reduce your tax payable

2014 Ontario Tax Rates

The 2014 Ontario tax rates are as follows:

Tax Bracket	Tax Rate
First $40,922	5.05%
$40,922.01 to $81,847	9.15%
$81,847.01 to $90,000	11.16%
Over $90,000	13.16%

For married couples filing jointly, the tax brackets are higher. The rates are the same, but the brackets are adjusted accordingly.

Common Deductions in 2014

There are several common deductions that can reduce your taxable income in 2014:

RRSP contributions (up to $23,000 for individuals, $46,000 for couples)
TFSA contributions (up to $5,500 per year)
Medical expenses (must exceed 3% of your income)
Donations to registered charities
Home office expenses
Union dues

Be sure to keep receipts for any deductible expenses to support your claim.

Tax Credits Available in 2014

There are several tax credits available in 2014 that can reduce your tax payable:

Basic Personal Amount: $10,642 for individuals, $21,284 for couples
Canada Employment Amount: $1,000 for individuals, $2,000 for couples
Canada Child Benefit: $10,225 per child under 6, $6,150 per child aged 6-17
Ontario Child Benefit: $2,000 per child under 18
Ontario Trillium Benefit: $1,000 per child under 18

These credits are automatically applied to your tax return, but you may need to provide supporting documentation.

Worked Examples

Example 1: Single Filer

John is a single filer with a taxable income of $50,000. He has no deductions or credits.

Calculation:

Tax Payable = ($50,000 × 5.05%) + (($50,000 - $40,922) × 9.15%) = $2,525 + $8,184.55 = $10,709.55

John's estimated tax payable is $10,709.55.

Example 2: Married Couple

Sarah and David are married and file jointly with a taxable income of $120,000. They have $10,000 in deductions and $5,000 in tax credits.

Calculation:

Taxable Income = $120,000 - $10,000 = $110,000 Tax Payable = ($40,922 × 5.05%) + (($110,000 - $40,922) × 9.15%) - $5,000 = $2,064.11 + $60,825.85 - $5,000 = $57,890.96

Sarah and David's estimated tax payable is $57,890.96.

Frequently Asked Questions

How do I know if I qualify for the Ontario Child Benefit?

You qualify for the Ontario Child Benefit if you have a child under 18 living with you. The benefit is $2,000 per child per year. You must file your taxes to receive this benefit.

What is the difference between a deduction and a credit?

A deduction reduces your taxable income, which in turn reduces the amount of tax you owe. A credit directly reduces the amount of tax you owe. Deductions are subtracted from your income before tax is calculated, while credits are subtracted from your tax liability after it's calculated.

Can I claim my RRSP contributions as a deduction?

Yes, you can claim your RRSP contributions as a deduction. The maximum contribution for 2014 is $23,000 for individuals and $46,000 for couples. These contributions are tax-deductible and can help reduce your taxable income.

What happens if I owe more tax than I have withheld?

If you owe more tax than you have withheld, you will need to pay the difference when you file your tax return. The Canada Revenue Agency will send you a notice if you owe additional tax. You can pay this amount by mail, online, or at a bank.