Ontario Salary Tax Calculator 2016

How to Use This Calculator

Enter your annual salary in the calculator panel on the right. The calculator will automatically compute your estimated tax liability, net salary, and tax rate. You can also adjust the number of tax credits you qualify for.

This calculator uses the 2016 tax rates and brackets for both federal and provincial taxes in Ontario. The results are estimates and may not reflect your actual tax liability, which depends on your specific circumstances.

Ontario Tax Rates 2016

In 2016, Ontario had progressive tax rates for both federal and provincial taxes. The federal tax rates were:

• 15% on the first $44,701 of taxable income
• 20.5% on the next $44,700
• 26% on the next $49,800
• 29% on the next $55,100
• 33% on amounts over $190,301

The Ontario provincial tax rates were:

• 5.05% on the first $42,960 of taxable income
• 9.15% on the next $42,960
• 11.16% on the next $51,440
• 12.16% on amounts over $137,360

How Ontario Salary Taxes Are Calculated

The Ontario salary tax calculation involves several steps:

1. Calculate federal income tax based on the federal tax brackets
2. Calculate Ontario provincial income tax based on the provincial tax brackets
3. Apply common deductions (such as RRSP contributions)
4. Apply tax credits (such as the basic personal amount)
5. Sum the federal and provincial taxes to get the total tax liability
6. Subtract the total tax from your gross salary to get your net salary

Worked Example

Let's calculate the taxes for a person earning $60,000 in 2016 with no additional deductions or tax credits.

1. Federal tax calculation:
   • $44,701 × 15% = $6,705.15
   • ($60,000 - $44,701) × 20.5% = $3,104.85
   • Total federal tax = $6,705.15 + $3,104.85 = $9,810.00
2. Provincial tax calculation:
   • $42,960 × 5.05% = $2,171.88
   • ($60,000 - $42,960) × 9.15% = $1,538.02
   • Total provincial tax = $2,171.88 + $1,538.02 = $3,709.90
3. Total tax = $9,810.00 + $3,709.90 = $13,519.90
4. Net salary = $60,000 - $13,519.90 = $46,480.10

This example shows that someone earning $60,000 would pay approximately $13,519.90 in taxes, leaving them with a net salary of $46,480.10.