Ontario 2021 Income Tax Calculator

Calculate your Ontario provincial income tax for the 2021 tax year using this official calculator. The Ontario 2021 tax rates and brackets are based on the provincial tax system that applies to residents and businesses in Ontario.

How the Ontario 2021 Tax Calculator Works

The Ontario 2021 income tax calculator applies the provincial tax rates to your taxable income after deductions. The calculation follows these steps:

Enter your total income for the year
Subtract any eligible deductions
Apply the Ontario tax brackets to the taxable income
Calculate the total provincial tax payable

Important Notes

This calculator provides an estimate based on the 2021 tax rates. Actual tax liability may vary based on your specific situation, including federal tax, CPP, EI, and other deductions. Consult a tax professional for personalized advice.

Ontario 2021 Tax Brackets

The Ontario 2021 tax rates are progressive, meaning higher incomes are taxed at higher rates. The brackets for individuals are:

Taxable Income	Tax Rate
$0 - $44,763	5.05%
$44,763.01 - $89,525	9.15%
$89,525.01 - $150,000	11.16%
$150,000.01 - $220,000	12.16%
Over $220,000	13.16%

The Ontario tax system also includes the Ontario Trillium Benefit (OTB), which provides a refundable tax credit for low- and middle-income earners. The OTB rates are:

Income Level	OTB Rate
$0 - $44,763	6.5%
$44,763.01 - $89,525	5.05%
$89,525.01 - $150,000	1.68%
Over $150,000	0%

Common Ontario Tax Deductions

Several deductions can reduce your taxable income in Ontario. Common ones include:

RRSP contributions (up to 18% of income)
Medical expenses (over 3% of income)
Donations to registered charities
Home office expenses
Union dues
Pension adjustments

Taxable Income = Total Income - Deductions

Worked Examples

Example 1: Single filer with $50,000 income

Taxable Income: $50,000

Tax Calculation:

$44,763 × 5.05% = $2,261.54
($50,000 - $44,763) × 9.15% = $528.42
Total Tax: $2,261.54 + $528.42 = $2,789.96

OTB Credit: $50,000 × 5.05% = $2,525.00

Net Tax Payable: $2,789.96 - $2,525.00 = $264.96

Example 2: Single filer with $100,000 income

Taxable Income: $100,000

Tax Calculation:

$44,763 × 5.05% = $2,261.54
($89,525 - $44,763) × 9.15% = $4,026.82
($100,000 - $89,525) × 11.16% = $1,204.36
Total Tax: $2,261.54 + $4,026.82 + $1,204.36 = $7,492.72

OTB Credit: $100,000 × 1.68% = $1,680.00

Net Tax Payable: $7,492.72 - $1,680.00 = $5,812.72

Frequently Asked Questions

How is Ontario income tax different from federal tax?

Ontario income tax is calculated separately from federal income tax. The Ontario tax system has its own brackets and rates, and the Ontario Trillium Benefit (OTB) provides additional tax credits for low- and middle-income earners.

What deductions can I claim on my Ontario tax return?

Common Ontario tax deductions include RRSP contributions, medical expenses, charitable donations, home office expenses, union dues, and pension adjustments. You can claim these to reduce your taxable income.

When is the Ontario tax deadline for 2021?

The Ontario tax deadline for 2021 was April 30, 2022. If you filed an extension, the deadline was June 15, 2022.

How does the Ontario Trillium Benefit work?

The Ontario Trillium Benefit (OTB) is a refundable tax credit that provides additional support for low- and middle-income earners. The credit rates vary based on your income level, with higher rates for lower incomes.