Ontario Corporate Tax Calculator 2019

Calculate your Ontario corporate tax for 2019 using this professional tax calculator. Understand how tax brackets, deductions, and credits affect your net income.

How the Ontario Corporate Tax Calculator Works

The Ontario corporate tax calculator for 2019 helps businesses determine their tax liability based on taxable income and applicable tax rates. The calculation follows these steps:

Calculate taxable income by subtracting eligible deductions from total revenue
Apply progressive tax rates to the taxable income
Subtract any tax credits to arrive at the final tax liability

Formula

Corporate Tax = (Taxable Income × Tax Rate) - Tax Credits

Where Taxable Income = Total Revenue - Eligible Deductions

The calculator uses the 2019 Ontario corporate tax rates and assumes standard deductions unless specified otherwise. For more precise calculations, consult with a tax professional.

Ontario Corporate Tax Brackets for 2019

Ontario corporate tax rates for 2019 follow a progressive structure:

Taxable Income Range	Tax Rate
$0 - $500,000	12.5%
$500,001 - $1,000,000	14.5%
$1,000,001 - $2,000,000	16.5%
Over $2,000,000	18.5%

These rates apply to the portion of income that falls within each bracket. For example, a company with $1.2 million in taxable income would pay:

$500,000 × 12.5% = $62,500
$500,000 × 14.5% = $72,500
$200,000 × 16.5% = $33,000
Total tax = $168,000

Common Corporate Tax Deductions in Ontario

Several deductions can reduce your taxable income in Ontario:

Deduction Type	Maximum Amount
Capital Expenditures	100% of eligible expenses
Research and Development	15% of eligible expenses
Interest on Business Loans	100% of eligible interest
Employee Benefits	100% of eligible expenses

Businesses should maintain proper documentation to claim these deductions. The Ontario government provides detailed guidelines on eligible expenses and documentation requirements.

Worked Example

Let's calculate the corporate tax for a company with the following details:

Total Revenue: $2,500,000
Capital Expenditures: $300,000
Research and Development: $200,000
Interest on Business Loans: $50,000
Employee Benefits: $100,000

Step 1: Calculate total deductions

$300,000 (Capital) + $30,000 (R&D) + $50,000 (Interest) + $100,000 (Benefits) = $480,000

Step 2: Calculate taxable income

$2,500,000 - $480,000 = $2,020,000

Step 3: Apply progressive tax rates

$500,000 × 12.5% = $62,500
$500,000 × 14.5% = $72,500
$1,000,000 × 16.5% = $165,000
$20,000 × 18.5% = $3,700

Total tax before credits: $62,500 + $72,500 + $165,000 + $3,700 = $243,700

Assuming no tax credits, the final corporate tax liability is $243,700.

Frequently Asked Questions

What is the corporate tax rate in Ontario for 2019?

The Ontario corporate tax rate for 2019 ranges from 12.5% to 18.5%, applied progressively to taxable income. See the tax brackets table for details.

How do I calculate my Ontario corporate tax?

Use the Ontario corporate tax calculator by entering your total revenue and eligible deductions. The calculator will compute your taxable income and apply the progressive tax rates.

What are the most common corporate tax deductions in Ontario?

Common deductions include capital expenditures, research and development expenses, interest on business loans, and employee benefits. See the deductions table for more details.

When is the Ontario corporate tax due?

Ontario corporate tax returns are typically due by April 30 of the following year. Businesses should consult the Canada Revenue Agency for specific deadlines.