Online Tax Calculator Ontario 2016

How to Use This Calculator

Using this online tax calculator is simple. Follow these steps:

1. Enter your total taxable income in the first field.
2. Enter any applicable deductions in the second field.
3. Click the "Calculate" button to see your provincial tax liability.
4. Review the results and use the information to prepare your tax return.

The calculator uses the Ontario 2016 tax brackets to determine your tax liability. It does not account for federal taxes or other deductions that may apply.

Ontario 2016 Tax Brackets

The Ontario 2016 tax brackets are as follows:

These brackets are based on the Ontario government's 2016 tax rates. The calculator applies these rates to determine your provincial tax liability.

How the Calculator Works

The online tax calculator uses the following formula to determine your provincial tax liability:

The calculator first calculates your taxable income by subtracting any applicable deductions from your total income. It then applies the appropriate tax rate based on your taxable income and the Ontario 2016 tax brackets.

For example, if your taxable income falls into the $42,962 - $85,923 bracket, the calculator will use a 9.15% tax rate to determine your provincial tax liability.

Example Calculation

Let's look at an example to illustrate how the calculator works. Suppose you have the following details:

• Total Income: $75,000
• Deductions: $10,000

Using the calculator:

1. Taxable Income = $75,000 - $10,000 = $65,000
2. Since $65,000 falls into the $42,962 - $85,923 bracket, the tax rate is 9.15%.
3. Provincial Tax = $65,000 × 9.15% = $5,912.50

Therefore, your provincial tax liability for the 2016 tax year would be $5,912.50.