Ontario Salary Tax Calculator 2020
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Reviewed by Calculator Editorial Team
Calculate your Ontario salary tax for 2020 using this free online calculator. This tool accounts for both federal and provincial tax rates, standard deductions, and tax credits to provide an accurate estimate of your take-home pay.
How to Use This Calculator
Enter your annual salary in the calculator below to see how much tax you'll pay in Ontario for 2020. The calculator will show you:
- Federal tax amount
- Provincial tax amount
- Total tax paid
- Take-home pay after taxes
The calculator uses the 2020 tax rates and standard deductions. For more detailed calculations, you may need to consult a tax professional.
Ontario Tax Rates 2020
In 2020, Ontario had the following tax rates for federal and provincial income tax:
Federal Tax Brackets 2020
| Taxable Income | Tax Rate |
|---|---|
| $0 - $48,535 | 15% |
| $48,535 - $97,069 | 20.5% |
| $97,069 - $150,473 | 26% |
| $150,473 - $214,368 | 29% |
| $214,368+ | 33% |
Ontario Provincial Tax Brackets 2020
| Taxable Income | Tax Rate |
|---|---|
| $0 - $44,702 | 5.05% |
| $44,702 - $89,405 | 9.15% |
| $89,405 - $150,000 | 11.16% |
| $150,000 - $220,000 | 12.16% |
| $220,000+ | 13.16% |
These rates are subject to change and should be verified with official government sources for the most current information.
Calculation Method
The calculator uses the following steps to determine your tax liability:
- Calculate federal tax based on the federal tax brackets
- Calculate provincial tax based on the Ontario tax brackets
- Sum federal and provincial taxes to get total tax
- Subtract total tax from your annual salary to get take-home pay
Tax Calculation Formula
Federal Tax = Sum of (Taxable Income × Rate for each bracket)
Provincial Tax = Sum of (Taxable Income × Rate for each bracket)
Total Tax = Federal Tax + Provincial Tax
Take-Home Pay = Annual Salary - Total Tax
This calculation assumes you have no additional deductions or credits beyond the standard rates shown. For more complex situations, consult a tax professional.
Worked Example
Let's calculate the taxes for an annual salary of $60,000 in Ontario for 2020.
Federal Tax Calculation
$0 - $48,535: $48,535 × 15% = $7,280.25
$48,535 - $60,000: ($60,000 - $48,535) × 20.5% = $2,465.25
Total Federal Tax = $7,280.25 + $2,465.25 = $9,745.50
Provincial Tax Calculation
$0 - $44,702: $44,702 × 5.05% = $2,261.61
$44,702 - $60,000: ($60,000 - $44,702) × 9.15% = $1,338.39
Total Provincial Tax = $2,261.61 + $1,338.39 = $3,600.00
Final Calculation
Total Tax = $9,745.50 (Federal) + $3,600.00 (Provincial) = $13,345.50
Take-Home Pay = $60,000 - $13,345.50 = $46,654.50
For a $60,000 salary, you would pay approximately $13,345.50 in taxes and receive about $46,654.50 in take-home pay.
Frequently Asked Questions
Are these 2020 tax rates still accurate?
These rates are based on the 2020 tax year. For current tax rates, you should consult the Canada Revenue Agency or Ontario government websites. Tax laws can change each year.
Does this calculator include all deductions?
This calculator uses standard tax brackets and does not account for additional deductions, tax credits, or special circumstances. For a precise calculation, consult a tax professional.
How often should I check my taxes?
It's a good idea to review your taxes annually, especially if your income changes significantly. Major life events like marriage, having children, or buying a home can also affect your tax situation.
Can I use this calculator for payroll purposes?
This calculator provides an estimate for personal tax planning. For payroll calculations, you should use official payroll software or consult with a payroll professional.