Marginal Tax Rate Ontario 2015 Calculator

Understanding your marginal tax rate in Ontario for 2015 helps you plan your finances effectively. This calculator determines your tax bracket based on your income and calculates the percentage of your income that goes to taxes.

What is a Marginal Tax Rate?

The marginal tax rate is the rate at which your next dollar of income is taxed. It's determined by the tax bracket in which your income falls. In Ontario, tax rates are progressive, meaning higher incomes are taxed at higher rates.

Your marginal tax rate is the tax rate applied to your next dollar of income. It's different from your average tax rate, which considers the total taxes paid divided by total income.

For example, if you earn $50,000 in Ontario in 2015, your marginal tax rate is 20.05% because that's the rate applied to income between $44,401 and $88,797.

Ontario Tax Brackets (2015)

In 2015, Ontario had the following federal and provincial tax brackets:

Income Range	Federal Rate	Provincial Rate	Combined Rate
$0 - $44,400	15%	5.05%	20.05%
$44,401 - $88,797	22%	9.15%	31.15%
$88,798 - $133,292	26%	11.16%	37.16%
$133,293 - $207,850	29%	12.16%	41.16%
$207,851+	33%	13.16%	46.16%

The combined rate is the sum of the federal and provincial rates for each bracket. This calculator uses these rates to determine your marginal tax rate.

How to Use This Calculator

Enter your total annual income in the calculator.
Click "Calculate" to determine your marginal tax rate.
Review the result, which shows your tax bracket and the percentage of your income that goes to taxes.
Use the chart to visualize how your income is taxed across different brackets.

Formula: The marginal tax rate is determined by the tax bracket in which your income falls. The calculator identifies the appropriate bracket and returns the combined federal and provincial tax rate for that bracket.

Example Calculations

Let's look at two examples to understand how the marginal tax rate works in Ontario for 2015.

Example 1: $50,000 Income

For someone earning $50,000:

The income falls in the $44,401 - $88,797 bracket.
The combined tax rate is 31.15%.
This means the marginal tax rate is 31.15%.

Example 2: $100,000 Income

For someone earning $100,000:

The income falls in the $88,798 - $133,292 bracket.
The combined tax rate is 37.16%.
This means the marginal tax rate is 37.16%.

These examples show how the marginal tax rate changes as income increases and moves into higher tax brackets.

Frequently Asked Questions

What is the difference between marginal and average tax rates?: The marginal tax rate applies to your next dollar of income, while the average tax rate considers the total taxes paid divided by total income. The marginal rate is higher for higher incomes because more of your income is taxed at higher rates.
How do Ontario tax brackets work?: Ontario tax brackets are progressive, meaning higher incomes are taxed at higher rates. The combined federal and provincial rates determine the percentage of your income that goes to taxes in each bracket.
Can I use this calculator for other years?: This calculator is specifically for Ontario tax rates in 2015. Tax rates change each year, so you would need a different calculator for other years.
What if I have deductions or credits?: This calculator provides an estimate based on gross income. For precise tax calculations, consult a tax professional or use official tax software.
Where can I find official tax information?: For official tax information, visit the Canada Revenue Agency or the Ontario Ministry of Finance.