Ontario Income Tax Calculator 2018
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Reviewed by Calculator Editorial Team
Use this Ontario income tax calculator to estimate your 2018 tax liability. The calculator uses the official 2018 tax rates and brackets for Ontario residents. Enter your total income and deductions to calculate your provincial tax, federal tax, and net income.
How to Use This Calculator
Follow these steps to calculate your Ontario income tax for 2018:
- Enter your total taxable income in the "Income" field.
- Enter any deductions or tax credits in the "Deductions" field.
- Click the "Calculate" button to see your tax results.
- Review the breakdown of your provincial tax, federal tax, and net income.
This calculator provides an estimate based on the 2018 tax rates. For exact figures, consult a tax professional or use official government tax forms.
Ontario Tax Brackets 2018
Ontario uses a progressive tax system with the following tax brackets for 2018:
| Taxable Income | Provincial Tax Rate |
|---|---|
| $0 - $43,906 | 5.05% |
| $43,907 - $87,813 | 9.15% |
| $87,814 - $150,000 | 11.16% |
| $150,001 - $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Federal tax rates for 2018 were:
| Taxable Income | Federal Tax Rate |
|---|---|
| $0 - $47,630 | 15% |
| $47,631 - $95,259 | 20.5% |
| $95,260 - $147,667 | 26% |
| $147,668 - $210,371 | 29% |
| Over $210,371 | 33% |
How Ontario Income Tax Works
The Ontario income tax system combines provincial and federal taxes. Here's how it works:
Provincial Tax Calculation
Ontario uses a progressive tax system where higher income brackets pay higher tax rates. The provincial tax is calculated as follows:
Provincial Tax = Sum of (Taxable Income × Rate for each bracket)
Federal Tax Calculation
The federal government also taxes income with its own progressive tax system:
Federal Tax = Sum of (Taxable Income × Rate for each bracket)
Total Tax and Net Income
The total tax is the sum of provincial and federal taxes. Net income is calculated by subtracting total tax from total income:
Net Income = Total Income - (Provincial Tax + Federal Tax)
Worked Examples
Example 1: Single Income of $50,000
For a single person earning $50,000:
- Provincial tax: $2,275.34
- Federal tax: $6,500.00
- Total tax: $8,775.34
- Net income: $41,224.66
Example 2: Single Income of $100,000
For a single person earning $100,000:
- Provincial tax: $7,700.00
- Federal tax: $17,500.00
- Total tax: $25,200.00
- Net income: $74,800.00
Frequently Asked Questions
Is this calculator accurate for my 2018 Ontario taxes?
This calculator provides an estimate based on the 2018 tax rates. For exact figures, consult a tax professional or use official government tax forms.
Do I need to include all my income in this calculator?
Yes, include all taxable income from employment, business, investments, and other sources. Exclude non-taxable income like child benefits.
What about deductions and tax credits?
Enter any eligible deductions or tax credits in the "Deductions" field. Common deductions include RRSP contributions, medical expenses, and union dues.
How do I file my actual 2018 taxes?
Use the official Ontario tax forms (T2125) and file electronically through the Canada Revenue Agency website or with a tax professional.