Net Income Calculator Ontario 2018
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Reviewed by Calculator Editorial Team
Calculate your net income in Ontario for 2018 using this free online calculator. Net income represents your take-home pay after all deductions and taxes have been applied to your gross income.
How to Use This Calculator
To calculate your net income in Ontario for 2018:
- Enter your gross income in the first field.
- Select your filing status (Single, Married, or Other).
- Click "Calculate" to see your net income.
- Review the breakdown of deductions and taxes applied.
The calculator uses the Ontario tax rates and deductions applicable for 2018. For the most accurate results, ensure you enter your actual gross income.
Formula Used
The net income is calculated by applying Ontario's progressive tax rates to your gross income, minus standard deductions. The formula is:
Net Income = Gross Income - Deductions - (Federal Tax + Provincial Tax)
Where:
- Deductions include the basic personal amount and other standard deductions.
- Federal Tax is calculated using Canada's federal tax rates.
- Provincial Tax is calculated using Ontario's provincial tax rates.
For 2018, the tax brackets and rates were as follows:
| Income Range | Federal Tax Rate | Ontario Tax Rate |
|---|---|---|
| $0 - $47,630 | 15% | 5.05% |
| $47,630 - $95,259 | 20.5% | 9.15% |
| $95,259 - $147,667 | 26% | 11.16% |
| $147,667 - $210,371 | 29% | 12.16% |
| $210,371+ | 33% | 13.16% |
Worked Example
Let's calculate the net income for a single person with a gross income of $50,000 in 2018.
- Gross Income: $50,000
- Basic Personal Amount (Deduction): $11,474
- Taxable Income: $50,000 - $11,474 = $38,526
- Federal Tax: $38,526 × 20.5% = $7,903.33
- Ontario Tax: $38,526 × 9.15% = $3,515.29
- Total Tax: $7,903.33 + $3,515.29 = $11,418.62
- Net Income: $50,000 - $11,474 - $11,418.62 = $27,107.38
So, a single person with a gross income of $50,000 would have a net income of approximately $27,107.38 in 2018.
Frequently Asked Questions
What is net income?
Net income is the amount of money you take home after all deductions and taxes have been applied to your gross income.
How does the Ontario tax system work?
Ontario uses a progressive tax system where higher income brackets are taxed at higher rates. The tax is calculated on your taxable income, which is your gross income minus deductions.
What are the standard deductions in Ontario?
The basic personal amount is a standard deduction that reduces your taxable income. For 2018, it was $11,474 for single filers.
Can I use this calculator for other years?
This calculator is specifically designed for Ontario tax rates and deductions in 2018. For other years, you would need to use a calculator with updated tax rates.